Category Archives: Capitalist Exploitation

Communist League: The Civil War in Liberia

08 Nov 1992, Monrovia, Liberia — Young rebel fighters pose with their assault rifles in Monrovia during the Liberian Civil War. In 1989, Charles Taylor, leader of the NPFL (National Patriotic Front of Liberia), launched a revolt against the regime of Samuel Doe and continues to fight for control of the country. By the end of 1990, the NPFL controlled 90% of Liberian territory, but not the capital. On June 11, 1991 President Sawyer proposed a peace settlement, to be overseen by a peacekeeping force (ECOMOG) from the Economic Community of West African States (ECOWAS), in which all Liberians would be treated equally. Despite the peace accord, violence among the NPLF, ECOMOG, the AFL alliance, and other factions continued to escalate. Fighting continues for another seven years. — Image by © Patrick Robert/Sygma/Corbis

Compass: Journal of the Communist League

No. 87; August 1990

LIBERIA, on the west coast of Africa, has an area of 43,000 square miles (about the size of Iceland) and a population of 2.4 million. It was founded in 1847 by American philantrophic organisations as a colony for liberated black slaves from the United States.

Liberia’s two main exports are iron ore (which accounts for 70% of export earnings) and rubber — mainly from the vast US-owned ‘Firestone’ plantations. According to the late President of Liberia, William Tubman,

“. . most people were earning as little as pounds Sterling 38 a year”

(Keesing’s Contemporary Archives’, Volume 18; p. 25,052).

Liberia’s capital, Monrovia (population 425,000) is named after James Mon~oe (1758-1831), the fifth President of the United States. Liberia’s unit of currency is the US dollar. Although Americano-Liberians comprise only 5% of the population, they have dominated Liberian politics since the foundation of the country in consequence of the country’s dependence on United States imperialism.

VIRTUALLY FROM ITS FOUNDATION TO THE PRESENT DAY, LIBERIA HAS BEEN A SEMI-COLONY OF UNITED STATES IMPERIALISM.

American interests in the country include:

“. . a ‘Voice of America’ transmitter. . . a telecommunications relay station . . ; an Omega satellite station; private investment amounting to some $350 million and extensive outstanding bank loans.”

(‘Keesing’s Contemporary Archives’, Volume 28; p. 31,283).

“Liberia was dependent on the USA for one-third of its budgetary needs.”

(‘Keesing’s Contemporary Archives’, Volume 32; p. 34,147).

“Access rights to Monrovia’s port and airport give to the US its only reliable gateway into West Africa and a staging area for supplies to anti-Soviet forces in Angola.”

(‘Time’, 6 August 1990; p. 27).

In 1971 William Tubman; who had been President since 1944 as leader of the ‘True Whig Party’ (which had ruled Liberia since 1870), died, and was succeeded by William Tolbert, previously Vice-President,

“. . a prosperous Liberian coffee and rice grower.”

(‘Keesing’s Contemporary Archives’, Volume 26; p. 30,405).

Unlike Tubman, however, Tolbert came to stand for

“closer links with the Soviet Union, a vision of cooperation with the states of the region and a tendency to believe in the rhetoric of the Organisation of African Unity.”

(‘Financial Times’, 1 August 1990; p. 4).

SUCH A FOREIGN POLICY WAS, OF COURSE, UNACCEPTABLE TO LIBERIA’S MASTERS IN WASHINGTON, WHO INSTRUCTED THE CENTRAL INTELLIGENCE AGENCY TO MAKE ALL PLANS FOR TOLBERT’S REMOVAL.

The ‘People’s Redemption Council’ Coup

In April 1979 large-scale demonstrations broke out in Monrovia over a proposed increase in price of rice. According to official figures, 41 persons were killed and 548 injured when police fired on demonstrators. Damage was estimated at $40-49 million. Congress granted Tolbert emergency powers for a year and the university — described by Tolbert as:

” . . a breeding-ground for revolutionary and subversive ideas”

(‘Keesing’s Contemporary Archives’, Volume 25; p. 29,732).

— was closed down.

By this time Liberia’s foreign indebtedness

“. . was estimated at about $800-million.”

(‘Keesing’s Contemporary Archives’, Volume 28; p. 31,282).

In April 1980 it was judged that the time was opportune to put the CIA plans into motion. A military coup, carried out by a ‘People’s Redemption Council’, composed of junior army officers, seized the presidential mansion assassinated Tolbert and his Ministers, and proclaimed the coup leader Master-Sergeant Samuel Doe — President. Doe

“had recently received training from a United States military mission in Monrovia.”

(‘Keesing’s Contemporary Archives’, Volume 26; p. 30,405).

The new regime suspended the Constitution, proclaimed martial law and banned all political parties.

Liberia’s Increased Dependence

Following the coup United States ‘aid’ to Liberia was increased.

Between April, and December 1980 the US government sent four missions to Liberia (‘Keesing’s Contemporary Archives’, Volume 28; p. 31,283).

“Since the overthrow of President William Tolbert in April 1980 total grants to Liberia were increased from $13.8 million in 1980 to $51,5 million in 1981.”

(Keesing’s Contemporary Archives’, Volume 29; p. 32,296).

In April 1981 US forces took part in joint manoeuvres with the Liberian armed forces and the US destroyer ‘Thorn’ visited Monrovia. (‘Keesing’s Contemporary Archives’, Volume 28; op. 31,283).

In May 1981 the Libyan ‘People’s Bureau’ in Liberia was ordered to close, and the Soviet Embassy in Monrovia was ordered to reduce its staff from 15 to 6. In July 1985 diplomatic relations were severed with the Soviet Union. (Keesings’ Contemportary Archives’, Volume 28; p. 31,283).

In August 1982 Doe paid a two week official visit to the USA during which he had a meeting with President Ronald Reagan. The US government agreed to provide training facilities for the Liberian armed forces, together with military aircraft and $15 million in military credits during 1983. (‘Keesing’s Contempotary Archives’, Volume 29; p. 32,296).

In September 1982 the International Monetary Fund approved grants to Liberia totalling $88 million. (‘Keesing’s Contemporary Archives’, Volume,29; p. 32,297).

In February 1983 Liberia signed an agreement with the USA worth $5 million for an improvement of Roberts International Airport in return for the granting of refuelling facilities for US military, aircraft. (‘Keesing’s Contemporary Archives’, Volume 29; p. 32,296).

The Rigged Elections

As a result of

“pressure from Washington,”

(‘Financial Times’, 1 August 1 1990; p. 4),

particularly from

” a Congress alarmed by Mr. Doe’s systematic abuses of human rights,”

(‘Financial Times’, 1 August 1990; p. 4),

In July 1984 political parties were allowed to reform, subject to registration by the government. The ban on political parties was lifted. By the time elections were held (in October 1985), four parties had been registered:
Doe’s own ‘National Democratic Party of Liberia’ (NAPL),
and three opposition parties —
the Liberia Unification Party,
the Liberian Action Party and,
the Unity Party.

“It was noted that those parties which had succeeded in obtaining legal status were considered to be right of centre.”

(‘Keesing’s Contemporary Archives’, Volume 32; p. 34,146).

In October 1985 elections were held, in which Doe was declared elected President, with 51% of the vote, while Doe’s NDPL was declared to have won 22 out of 26 seats in the Senate and 51 out of 64 seats in the House of Representatives… By early November all the opposition parties had denounced the elections for:

“intimidation and irregularities.”

(‘Keesing’s Contemporary Archives’, Volume 32; p.34,147).

while the US Congress had characterised them as

” . . fraudulent . ‘. marred by intimidation and ballot rigging”;

(‘Financial Times’, 1 August 1990; p. 4).

Only 9 representatives of foreign states (including that, of the USA) attended Doe’s inauguration.

‘Human Rights’ Breached

Although the US government – – and especially the US Congress — paid lip-service for political reasons to its concern for ‘human rights’,

” . . Washington had turned a blind eye to detention without trial, torture and summary execution.”

(‘Time’, 6 August 1990; p. 27).

and to the fact that

“. . more than $500 million in economic aid and military assistance Doe used to put down domestic opponents.”

(‘Time’, 6 August 1990; p. 27).

Before the election had been held, however, the Liberian government had committed the gravest ‘breach of human rights’ imaginable to Washington: it had defaulted on the repayment of its loans.

In June 1985 the International Monetary Fund ruled that Liberia was no longer eligible for IMF credits because of its failure to pay on time arrears of some $52.4 million.

In November 1985 Doe announced austerity measures, including 25% cut in the salaries of government servants:

“The measures were seen as a response to IMF demands for economic reforms.”

(‘Keesing’s Contemporary,Archives’, Volume 32; p. 349148).

Early in 1986, both Houses of the US Congress passed resolutions urging the Administration to suspend ‘aid’ to Liberia on the grounds that the 1985 elections had been rigged and that the Doe regime’s record on human rights was ‘poor’. The Administration, however, rejected Congress demands on the grounds that:

“. . President Doe had the power to govern.”

(Keesing’s Record of World Events’, Volume 33; p. 34,979).

In April 1986 US Assistant Secretary of State for African Affairs Chester Crocker visited Liberia and had talks with both Doe and the opposition party leaders. The latter were arrested in May.

Although economic ‘aid’ to Liberia had been suspended under US law because of arrears of debt servicing payments, which by 31 March amounted to $660 thousand, after Crocker’s visit it was announced that the USA would give Liberia $42 million in economic ‘aid’ during 1986. The funds had reportedly been made available in exchange for ‘political concessions’ from the Liberian government. (‘Keesing’s Record of World Events’, Volume 33; p. 34,979).

In January 1987 US Secretary of State George Shultz visited Liberia,

“. . urging President Doe to undertake political and economic reforms.”

(‘Keesing’s Record of World Events’, Volume 33; p. 34,979).

Shultz praised Doe’s elections as

“. . quite open,”

(‘Time’, 6 August 1990; p. 27)

and as signifying Doe’s

“. . genuine progress towards democracy.”

(‘Time’, 6 August 1990; p. 27).

He did, however, express ‘serious concern’ about a secret arms purchase agreement signed between Liberia and Romania. President Doe had paid an official visit to Romania in October 1986. (‘Keesing’s Record of World Events’, Volume 33; p..,34,979).

However, the USA continued to finance Liberia during 1987 at a time when most of the country’s backers donors had suspended ‘aid’. The World Bank, for example, took such action in June 1987 because of the Liberian government’s arrears in repayments, resulting, it was alleged, from

“corruption and local mismanagement,”

(‘Financial Times’, ibid.; p. 4).

Nevertheless, US ‘aid’ to Liberia was cut to $36 million in 1987 and to $31 million, in 1988, and the Liberian government was warned that US ‘aid’ would cease unless payment of $7 million of arrears was received by May 1989. (‘Record of World Events’, Volume 35; p. 36,610).

In January 1988 a team of 17 US financial experts arrived in Liberia and wree given effective control of the Liberian government’s finances:

“The advisers . . . were empowered to countersign all financial documents issued by the government.”

(‘Record of World Events”, Volume 34; p. 35,885).

However, the American experts found themselves so frustrated by the Doe bureaucracy that their two-year contract was terminated after one year. By this time Liberia’s foreign debt totaled $1,700 million, with arrears on repayments amounting to $671 million. (Record of World Events’, Volume 35; p. 36, 610).

BY 1989, THEREFORE, THE DOE REGIME HAD CEASED TO BE ACCEPTABLE TO UNITED STATES IMPERIALISM, AND ITS INTELLIGENCE SERVICE SET IN MOTION FORCES DESIGNED TO CARRY THROUGH ANOTHER COUP WHICH WOULD REPLACE THIS REGIME WITH MORE ACCEPTABLE LOCAL PUPPETS.

A New Coup is Prepared

In May 1984 a former employee of the Liberian government named Charles Taylor was arrested in the United States and charged with misappropriation of $1 million of government funds. However, it was later announced that he had ‘escaped from custody’ and in December 1989 he appeared in the Ivory Coast in command of a small armed force which he led across the frontier into Liberia. (‘Review of World Events’, Volume 30; p, 32,898; Volume 36, p. 37,174).

By the spring of 1990 Taylor’s armed force was some 15,000 strong, had taken the name of the ‘National Patriotic Forces of Liberia’ (NPFL), had occupied most of the country and had advanced to the outskirts of Monrovia. (‘Le Monde’, 1 August 1990; p. 3; ‘Review of World Events’, Volume 36, p. 37,174; ‘The Independent on Sunday’, 5 August 1990; p. 14).

“An American offer to ferry Doe to safety was refused. His soldiers in the mansion are said to have told him that he could not leave without them.”

(‘Sunday Times’, 5 August 1990; p. 21).

The NPFL is very far from being a disciplined force:

“His men . . look as though they are at a weird fancy dress party. Instead of camouflage fatigues, they sport brightly coloured track suits. Some turn up for battle in crash helmets, others don dressing, gowns and women’s wigs . . . Looting has been rife on all sides.”

(‘Sunday Times’, 5 August 1990; p. 21).

The Split in the NPFL

In February 1990 one of Taylor’s officers, ‘Prince’ Johnson,

“…executed a number of NPLF commandos for alleged looting and desertion.”

(‘The Independent on Sunday’, 5 August 1990; p. 14).

This aroused Taylor’s wrath and a split occurred in the NPLF forces, Johnson breaking’away with a force some 500-1,000 strong. (‘Le Monde’, 1 August 1990; p. 3).

Johnson accused Taylor of being:

“a criminal and a rogue.”

(‘Financial Times’, 1 August 1990; p. 4).

and, embarrassed by Taylor’s

“. . refusal to commit himself to elections,”

(‘Time’, 6 August 1990; p. 27),

by July 1990 the US imperialists had come to regard Taylor as as unacceptable as Doe:

“Both Mr. Taylor and the man he is trying to overthrow, President Samuel Doe, are now seen (in Washington — Ed.) as dangerous and unacceptable leaders.”

(‘The Independent on Sunday’, 5 August 1990; p. 14).

and transferred their backing to Johnson:

“Mr. Johnson’s men (are) thought to have at least the tacit support of the US. . . . Diplomatic sources saw the offensive by Mr. Johnson as a US-inspired move.”

(‘The Independent on Sunday’, 5 August 1990; p. 14).

While Taylor’s forces were still camped on a ‘Firestone’ rubber plantation some 30 miles east of Monrovia, at the end of July Johnson’s forces

“suddenly appeared at the gates of Doe’s mansion, According to Tom Woweiyu, Taylor’s ‘Defence Minister’: ‘. . the US helped airlift ‘Prince’ Johnson and his fighters into central Monrovia.”

(‘The Independent on Sunday’, 5 August 1990; p. 14).

The three-sided civil war continues at the time of writing.

Meanwhile, on 29 August, at least 600 civilian refugees, including women and babies, were murdered by Doe government troops in St. Peter’s Lutheran church in Monrovia. (‘Financial Times’, 31 July 1990; p. 22).

Source

 

Labour Party (EMEP): Step by Step; Moving Towards a Dictatorship

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Labour Party (EMEP), Turkey
emep.org

The failed attempted military coup of 15 July, orchestrated by the so called ‘Gülen Movement’ – the pro-American Islamic organisation that shared power with the AKP government for 10 years – was called “a gift from God” by the Turkish President Tayyip Erdoğan.

The crushing of the coup was quickly followed by the declaration of a state of emergency (OHAL). OHAL enabled the government to take administrative and political decisions and to introduce regulatory legislation without the need for judicial and/or parliamentary approval.

Under the leadership of President Erdoğan, the AKP government issued emergency decrees (KHKs) one after another; leading to suspension and dismissal of tens of thousands of military and police officers, judges, prosecutors and civil servants. Almost 40,000 people, including academics and teachers were also arrested. The number of jailed journalists rose to a record high of 140. Meanwhile, 37 thousand petty criminals were released on the account that there was not enough space in prisons. Whereas the government initially claimed that dismissals and arrests were carried out only against coup plotters of the Gülen movement; soon it became clear that democrats and socialists were also targeted. Through only one decree, more than 10 thousand teachers, all members of Eğitim-Sen (Education and Science Workers Union), were laid-off. A great majority of them were democrats, socialists and supporters of Kurdish national movement.

Following the attempted coup, overriding of rights and freedoms – traditionally deficient in Turkish political democracy – have increased; bourgeois law is at a standstill and has been replaced by arbitrary treatments of the executive/government. Replacing legislation with the state of emergency and rule by emergency decrees, and subordinating the judiciary to the executive through special courts and appointment of new judges and prosecutors; Erdoğan and AKP are trying to establish a fascist dictatorship regime of one-man, one-party.

The government issued unconstitutional and illicit decrees, while by law it only could issue ones that are constitutional and related to the events that lead to declaration of state of emergency. With the help of these decrees targeting the critics of AKP, demonstrations are banned, dissident newspapers, journals, radio stations and TV channels are shut down; their property and equipment are confiscated.

The municipalities led by HDP, third biggest party in the parliament with 40 MPs and representing the Kurdish democratic movement, were raided by the police and more than 20 mayors arrested. Trustees were appointed to their posts without a public vote.

Finally, a total of ten HDP MPs – including the party co-chairs – were jailed. At the same time, 10 executives of the Cumhuriyet newspaper – founded 93 years ago with the establishment of Turkish Republic and politically aligned in recent years with social democracy – were also arrested.

Publications defending the revolutionary line of the working class­ such as Hayatın Sesi TV, Evrensel Kültür (a culture and art magazine), Özgürlük Dünyası (a journal of political theory), Tiroj (bilingual Kurdish-Turkish cultural magazine) were among the television stations and publications closed down by the government.

Unconstitutionally, without breaking his association with AKP for nearly two years and consolidating all executive power in his hands, the de-facto president Erdoğan is trying to change the constitution in line with the aforementioned situation and pushing for a presidential system.

Furthermore, while insisting on a foreign policy based on expansionism and sectarian war, intimate with Islamist terrorist groups, the Erdoğan-led government is taking further steps. Over the last five years, it has supported radical Islamist gangs in Syria and their organisation, to overthrow the Esad regime. In a new attempt, Turkey launched a military operation in Northern Syria at the end of the summer, to back a few thousand Islamist terrorist militants it put forward initially. The intervention was under the pretext of fighting against ISIS, but its main target was Syrian Kurds. Turkey, along with Islamist gangs, controls/invades an area of almost 2000 km2, stretching from the banks of the Euphrates river to the Kurdish canton of Afrin, including cities and towns such as Jarablus. Nowadays, the government pursues the propaganda of conquering al-Bab. However, a spike was put in Turkey’s wheel due to US support for Syrian Democratic Forces – the backbone of whom is YPG – in the operation to liberate the “capital” of ISIS, Raqqa; and the support of Russia for the Esad regime, trying to capture al-Bab because of its strategic importance as a gate to Aleppo.

The AKP government, while fighting the PYD-YPG in Syria, is also in conflict with the Iraqi government due to its military presence in the Iraqi town of Bashiqa; Iraq is demanding the withdrawal of the Turkish forces. The Turkish Airforce is regularly bombing Northern Iraq, claiming to attack PKK camps.

In the last year, Syria and Iraq policies of Turkey have increasingly changed; as well as relations with the Us and the EU cooling, due to the Turkish belief that they supported the attempted coup of 15 July.

Following the agreement for Turkey to stop the migration from Syria, Iraq and Afghanistan and the EU to pay Turkey three billion Euros, as well as give Turkish citizens visa-free travel rights within the EU, both sides failed to keep their promises and the relationships between Turkey and the EU are strained. The AKP government is claiming that they’ll wait two more months before cancelling the agreement and that they’ll go to a referendum on EU membership due to its criticism of Turkey; EU, citing the imprisonment of journalists and the like, have started talking about halting discussions on Turkish membership.

Since its establishment, Turkey had close economical, trade and financial ties with the West and very strong military ties with the USA; as such it is undoubtedly very hard for Turkey as a NATO member to change its ‘axis’ or ‘boss’. Nevertheless, President Erdoğan, having visited Pakistan recently, has stated “…why not? It will help Turkey feel at ease” on the issue of membership to the Shanghai Cooperation Organisation.

Besides the policies and steps taken by the AKP government, the Turkish economy is not going in the right direction either. The rate of growth has been falling for the last four years, the deficit and unemployment increasing. According to official figures unemployment is at 11% but the real figure is higher. The dollar has risen 10% against the Turkish Lira in the recent days; as if the Turkish lira has devaluated and lost 10% of its value. The government is cutting the interest rate and increasing available credit in an attempt to stimulate the economy but stagnation has set in all sectors – primarily building and textile sectors. A capitalist crisis that is not limited to, and not necessarily starting in the financial sector is raising its “head” and this is the soft underbelly of the AKP.

Despite all bans and police oppression, strikes at workplaces level continue. The powers of the executive are ever increasing; students are demonstrating against the decision that university rectors will be appointed by the President. Solicitors and intellectuals are demonstrating to condemn the imprisonment of their peers. Opponents of AKP are trying to create new alliances. Unity for Democracy with its components of democratic, socialist, social-democrat and Kurdish national movements, including our party, is taking further steps to organise following a series of meetings.

New magazines are published in place of others.

Is the future of Turkey going to be a fascist dictatorship run by one man? Or the struggle for democracy and freedom will widen and strengthen to achieve new successes; the dimensions of the struggle and the level of organisation will determine this. Of course the international support and solidarity will have a great contribution to the outcome.

Labour Party (EMEP) Turkey
International Bureau

ICMLPO: Solidarity with the Union of Educators of Ecuador (UNE)

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From the International Conference of Marxist-Leninist Parties and Organizations, we extend our solidarity with the National Union of the Educators of Ecuador (UNE), the largest trade union organism of the Ecuadorian teachers that in its history of more than 72 years has played a very important role for the conquering of the rights and freedoms for the people and has stood firm against the most heinous dictatorships that the Ecuador has seen.

Today, just like yesterday, UNE is subject of harassment and persecution on the part of the reaction that took shape in Rafael Correa government, which unmask itself as a servant that defends the interests of the imperialism and new groups of rich produced by the politics of modernization of the capitalism; a government that has made one of its more reactionary plan acting for the dissolution of an institution of great democratic prestige, struggle tradition and long history.

UNE has been subject to the reactionary politics of Correa and Alianza Pais party, because it has demonstrated in the practice to be consistent and unwavering in the defence of the popular interests; UNE, always maintaining the class political independence, and being a moral bastion in front of dictatorships and pseudo-democratic governments, always opposed to the plans of deepening the neoliberal politics of privatization of the education and labour flexibility, fighting for the rights of teachers, students and the peoples. For these reason it has the support and solidarity of the main trade unions of Ecuador, the sympathy and the backing of many trade union organizations of the teachers at international level.

From each of our trenches, we extend our greetings and encouragement so that the teachers and peoples struggle in Ecuador will develop their independent way building the popular unity that the working class and the peoples of Ecuador require for the construction of the new Motherland and Socialism.

Long live the teachers and Ecuadorian peoples struggle!
Long live internationalist solidarity!
 
October 2016
 
XXII PLENARY OF THE INTERNATIONAL CONFERENCE
OF MARXIST-LENINIST PARTIES AND ORGANIZATION

ICMLPO: Let’s Extend Our Solidarity to the Workers and Youth of Brazil That Are Fighting For the Defense of their Rights and Freedoms of Expression and Organization

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The XXII Conference of the CIPOML gathered in Denmark, manifest its full solidarity to the growing protests of the working class and the youth of Brazil to reject to the parliamentary manoeuvre imposed by the most reactionary National Congress in the whole history of Brazil that responds to the miserable interests of the Federation of Industries of the State of São Paulo and to the oligarchy of the financial capital, which powered up the impeachment with the clear objective of loading on the shoulder of the working classes the terrible weight of the current economic crisis that corrode the dying capitalist economic system.

This is absolutely evident in all the measures taken by the illegitimate, antinational, corrupt government that have visible tendencies to the fascism, in its five months of existence.

Michel Temer government involved in the coup has already removed the exclusivity of PETROBRAS to explore the crude oil in the deep waters of the “Upresal” sea; it is implanting “The school without party” in the whole basic and secondary system that will be anymore obligatorily and free, as well as the university education. Furthermore, in the Chamber of Deputies was approved on October 11 the project of amendment of the Constitution (PEC 241), which removes the obligation of the Brazilian government to increase for the next 20 years the state budget in health, education and social aid. Therefore, there will be no wage increase in wage for teachers and medical doctors, neither contract for other public servants, with the aim to undermine the public services and to justify the privatization of these essential services. This great amount of money will go to the bankers through the perverse mechanism of the payment on the public debt that already reaches to the astronomical value of R$ 3 trillions 936 billions 680 millions, 962 thousand and 32 real.

The result of this situation will be a real social catastrophe, with more than 12 million unemployed workers, a number that increases every day, and with 800 schools occupied in protest by the secondary students; for this reason the main central trade unions, the two fronts of social mobilization – “Brazil Popular” and “People Without Fear” – the left Party and the Organizations, are calling for a general strike on November 11.

We wish every success at these days, for the rich tradition of struggle of the Brazilian people that only with its mobilization and organization can overthrow the Temer government and to impede this tragedy, and in this way to open the road to establish the popular power and socialism, the unique system that will be able to solve effectively the problems of exploitation and oppression lasting several centuries.

October 2016.
XXII PLENARY OF THE INTERNATIONAL CONFERENCE
OF MARXIST-LENINIST PARTIES AND ORGANIZATIONS

22nd Plenary of the ICMLPO: ‘Free Trade Agreements’ Weapons of Economic Aggression and Imperialist Domination

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Currently in most of the European countries as well as in the USA and Canada, hundred thousands of workers and progressive people protest and fight against “free trade treaties” like TTIP, TISA and CETA. A large resistance movement has developed. Already, there have been some successes in the struggle. The negotiations have been suspended. Nevertheless the resistance movement especially against CETA continues.
Why?

Why?

The workers and peoples have gathered some experience with “free trade agreements” and have seen that they did not result in more and better jobs, but instead in increased poverty. For example, the NAFTA agreement between the USA, Canada and Mexico has not lead to an economic growth, but instead to low wages, unemployment and to the elimination of the weaker enterprises, that where defeated in the increasing competition.

It is therefore obvious that such agreements are in favor of the biggest imperialist monopolies. Likewise, the Ukraine was forced to sign an “association agreement” with the EU, a “free trade agreement” which had all the negative consequences for the workers, the people and the economy. Furthermore, this agreement included the subordination of Ukraine under the military structures of EU and NATO, transforming the Ukraine into a front state of aggression against Russia.

These agreements are very undemocratic. The negotiations are generally conducted in secret. They are put into practice “provisionally” even before they are ratified by the bourgeois parliaments or after they have been rejected by a parliament or in a referendum. In the Netherlands, the “free trade treaty” with the Ukraine was rejected by the people in a referendum. But the EU just ignored the people’s will.

Whenever such treaties are put into practice, the bourgeois institutions are submitted to new private arbitrating tribunals.

The mobilization against the Trans-Pacific Partnership (TPP), a similar “free trade treaty”, is developing on both sides of Pacific.

At this time, the EU forces many African states to sign the so called “Economic Partnership Agreement” which will increase their dependency on the EU imperialists. It will deepen the neocolonial plundering by opening the markets for the EU industry even more, destroying their own economic structures, and it will also ease the exploitation of their natural resources. The peoples of Africa struggle against this new imperialist offensive. We have to support them.

The workers and the people have good reasons to combat these treaties. Of course, TTIP, TISA and CETA are treaties between imperialist powers, where each party hopes to outwit the other and gain hegemony. They will lead to lower wages, increased unemployment, lower social and environmental standards, the dismantling of democratic rights and to an increased competition among the workers. Thus the workers and the people’s determined resistance is justified. We, as Marxist-Leninist parties and organizations are an active part in these movements and work to develop it.

We, as Marxist-Leninist parties and organizations are an active part in these movements and work to develop it.

Stop TTIP, CETA and TISA!

Stop the so called “Economic Partnership Agreement” between EU and Africa!

22nd Plenary of the International Conference of Marxist-Leninist Parties and Organisations

Final Declaration of the 25th International Anti-Fascist and Anti-imperialist Youth Camp

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On August 10, 2016, the 25th International Anti-Fascist and Anti-Imperialist Youth Camp (IAFAIYC) ended, which began on August 3 in Santo Domingo, Dominican Republic, under the slogan: For solidarity, peace and freedom. Hundreds of democratic, progressive, environmentalist, leftist, feminist, anti-fascist, anti-imperialist and revolutionary youths met to analyze the realities of each people, coming from: Puerto Rico, Ecuador, Haiti, United States, Canada, Colombia, England, Venezuela, Turkey, Germany, Brazil, Mexico.

These were days of important work, of profound analysis on the issues dealt with that, together with cultural and sports activities, promoted the integration of the countries and peoples taking part.

An important part of the youth who are promoting changes in the world and are fighting in different continents and regions met in the Dominican Republic to discuss their realities, to make known their demands and to agree on the international tasks of the youths who desire profound transformations for their peoples. The 25th Camp demands from us a fundamental task, the work for the 26th IAFAIYC to be held in another corner of the planet in 2018 and that already demands our preparation and work.

The discussions taken up during the Camp reflect the common problems that we young people have in the world: unemployment, exploitation, lack of access to education, discrimination and criminalization, among others, which the capitalist system subjects us to permanently, as it does to other social sectors of each of our peoples.

The discussions taken up during the Camp show us that the enemies of the youths and peoples of the world are common: the ruling classes of each of our countries, the bourgeoisies; the imperialist powers that are trying at all times to secure the economic, cultural and political dependence of our peoples; the international monopolies that take over our territories to loot our natural resources and condemn the workers to low-paid work-days. We thus declare that the fundamental opponents of the rights and interests of the youths and peoples of the world are capitalism and imperialism.

In various countries, imperialism’s thirst for profit is promoting a tendency toward fascism in certain states and therefore they use the most reactionary violence, they promote the criminalization of social protest, terrorism, drug trafficking, para-militarism, and through these means of intimidation and oppression they are trying to contain the determined struggle that is being taken up in the different countries and these phenomena are being aggravated.

In this context, on October 10, 2015, in Ankara Turkey an attack took place on a demonstration of democratic sectors that rejected the repressive and anti-popular policy of the Erdogan regime. It left 245 injured and 95 dead, of whom four were young comrades who were part of the 24th IAFAIYC held in Izmir, Turkey, two years ago.

On February 3, 2014, a communist militant from the state of Morelos, Mexico, Gustavo Alejandro Salgado Delgado, who began his political action at the 19th IAFAIYC in Mexico, was assassinated by the state. Today the youth of the world are holding high the banners of justice for these fallen comrades, they are denouncing the repressive actions of these regimes and their moves toward fascism, which are a reflection of their weakness, because their institutions have lost their authority and are no longer able to continue ruling as they did before.

During the 25th IAFAIYC, the youths of Venezuela, the popular organizations and the sectors of the Left endured the forced disappearance and later assassination of comrade Julio Blanco, who attended and was one of the organizers of the 23rd International Camp held in that country in 2012.

For our comrades fallen in the midst of struggle, who together with us and thousands more men and women dreamed of a different world, in which we would all be truly free, we raise our voices and our fists demanding justice and prison for those responsible. We make a determined commitment to continue their battles in each of our countries until we achieve victory.

Those of us who attended the 25th IAFAIYC came from different corners of the planet and we discussed our struggles and battles. In Europe hundreds of thousands of young people have taken to the streets to reject the neoliberal labor reforms aimed at curtailing the rights of young workers, subjecting them to increasingly harsh work days, with ever-decreasing wages in a context in which the capitalist states are strengthening their adjustment policies, which are anti-worker, anti-people and they are trying to place this burden on the peoples and make its consequences fall on the peoples, workers and youths. In the Americas, banners are raised in defense of public, secular, quality and universal education against the ruling corrupt right-wing regimes, which discriminate against the youth. We demand a greater budget for social services; we reject the anti-popular laws and policies in different countries that curtail the rights and freedoms of youth. In all the corners of the planet we constantly dream and struggle to win a world radically different from the one that capitalism gives us and to which imperialism subjects us; we struggle for life and freedom, for a real democracy so that we who create the wealth are the ones who we can define the future of our peoples.

With the same force and intensity, we discussed our problems, we expressed our solidarity with the peoples struggling for their independence, for recognition of their territories such as Palestine and the Kurdish people, against forced displacement, against the discriminatory policies that legitimize wars and hunger to which capitalism and imperialism subject millions of men and women in countries such as Kenya, Somalia and Haiti.

We express our solidarity and support for the men and women of the world who have become refugees due to the aggression promoted by the imperialist powers, which are taking place in regions such as the Middle East. We condemn the imperialist wars that seek to plunder the resources of the peoples; we reject the interventions of the world powers that seek to expand their zones of influence and increase their degree of subjection; we want no more wars in which the young people are forced to become cannon fodder of the violence of the system, we demand peace and self-determination for the peoples of the world.

We emphasize the role of women as essential protagonists in the social transformations and the productive development of the peoples; we recognize and reject the conditions of super-exploitation and structural violence of which they are victims. We reject all forms of sexual discrimination and oppression as we condemn their patriarchal and misogynist character, a product of the imperialist-capitalist system.

The unity of the workers of the world is fundamental for our demands and aspirations to be met, to stop the policies of terror of the capitalist states; it is indispensable to strengthen the principle of internationalism, to promote solidarity among the youths of the world. We are building the unity of the youths, workers and peoples through the exchange of experiences, broad and democratic discussion of our problems, political accords that denounce the evils of capitalism and imperialism in all corners of the planet. We are following and supporting the struggles that are unfolding in different countries, and especially the struggle and mobilization that we are developing in each of our countries in defense of our rights and interests and those of our peoples. Only in this way can we stop the looting, war, fascism and the whole imperialist policy imposed on the broad majority subjected to and exploited by capitalism and imperialism.

This camp is a reflection of the joy and rebellion of the youths of the world, of the renewing character of those of us who feel angry and demand profound transformations in each of our countries. All the energies of the youths of the world, all the battles that we take up should be aimed in one direction, against capitalism and imperialism, in order to break the chains of exploitation, domination, oppression, discrimination and dependency to which we are subjected. hey must be directed toward profound changes, that will guarantee the victory of the emancipation of each of our peoples. The course that the young people of the planet who are struggling against capitalism, imperialism and fascism must take should be one of the revolution and the building of a new society, a socialist society.

Let us lift up our voices, our struggle and the unity of the anti-fascist and anti-imperialist youth of the world!

Santo Domingo Dominican Republic, August 10, 2016

Organizations that Signed the Resolutions of the 25th International Anti-Fascist and Anti-Imperialist Youth Camp:
Revolutionary Youth of Ecuador
National Student Coordinator – Mexico
Union of Revolutionary Youth of Mexico
Federation of Socialist Peasant Students of Mexico
Movement of Popular Organizations – Haiti
Union of Rebel Youth – Brazil
Delegation of Puerto Rico
Current of Anti-Fascist and Anti-Imperialist Youth – Venezuela
Caribbean Youth – Dominican Republic
Flavio Suero Student Front – Dominican Republic

The 25th International Camp discussed the particular problems of each of the participating countries; their debates allow us to affirm and endorse the present political agreements, which express the analysis and denunciation of their problems and the banners of struggle that the youths of each peoples are taking up in their respective territories.

Venezuela

Venezuela is facing an economic, political and social crisis. This is taking place in the context of the general crisis of capitalism, of the condition imposed by the continuing dependency and is now in a process of renegotiating its economy, affected mainly by the low price of oil and the sabotage by the bourgeoisie. It has a democratic and popular government, but one that has acted by conciliating the interests of the proletarian class as a solution to the crisis. All these factors, coupled with a strong imperialist offensive, are contributing to a sharpening of the contradictions of the class struggle in this country.

The different scenarios were presented, in which the bourgeoisie is seeking as soon as possible to retake full power in order to suppress the popular movement. Against this this revolutionary youth, together with the workers, peasants and community organization, is raising the banner of anti-imperialist revolutionary popular unity, UPRA, which is the platform that today calls on us to bring together a broad accumulation of all the popular, democratic and revolutionary forces against imperialist intervention and fascist reaction.
Ecuador

The 25th IAFAIYC held in Santo Domingo, Dominican Republic, between August 3 and 10, 2016, expresses its solidarity with the youth, workers and peoples of Ecuador who are promoting unity and struggle in opposition to the government of Rafael Correa that, with a leftist discourse, is promoting reforms aimed at consolidating capitalism and affecting the popular sectors.

We representatives of the 12 countries in Europe, Asia and the Americas join with the struggle taken up by the student movement against the government policy aimed at reserving education for the elite and imposing improvised reforms that threaten educational rights, as well as the repression against hundreds of students and social leaders. We support – in that sense – the demand for the dismissal of Education Minister Augusto Espinosa who is currently facing a political trial for incompetence; we stand in solidarity with Cotopaxi Technical, Andean and FLACSO [Latin American Faculty of Social Sciences] universities that are being attacked by the government. We reject the attempt to make illegal the historic teachers’ union, the National Union of Educators, a measure that is one more fruitless attempt by the regime to silence the voice of the largest union in Ecuador, the representative of the teachers and promoter of an emancipating education. Finally, we wish for the success of the National Accord for Change, a unitary candidacy based on the unity achieved among union sectors, the indigenous and social movements that, after defeating the government in the days of popular mobilization, is prepared to take part in the next electoral process and defeat the right-wing that is governing and the traditional sectors that seek to recover lost ground.

Haiti

Education has a multiple effect on human development, therefore in our country the lack of this tool forces us to accept the capitalist and imperialist propositions; in this regard, we are firm in our resolve to fight against the empire by means of Education.

Puerto Rico

As anti-imperialist youths, we understand that it is indispensable to support the struggle for the liberation of the peoples. That is why we express our full support for the struggle for the independence of Puerto Rico. This is a necessity to weaken the imperial domination in the Caribbean region and our Americas. In addition, this will save our youth from the oppression of the empire that, besides expressing itself through its neoliberalism, is now taking on new intensity with Fiscal Control Board, established by the Congress of the United States. Similarly, we understand the importance of the political integration among the rank and file movements of our peoples. We propose an Antillean federation as a political tool to concretize and give strength to the struggle to expel the Yankee invader from our territories in the Caribbean.

Moreover, we demand the freedom of all political prisoners and prisoners of war in the Yankee jails. We must never leave behind our comrades in the dungeons. They are revolutionary comrades who understood the consequences of the revolutionary struggle and took it up with discipline and commitment.

France

The development of the policies in Europe is the result of the war in the Middle East and the refugee crisis. After the explosions in some European countries, a state of emergency was declared, as in France and Belgium, which is why many young people and the opposition have been confronted by force. The right-wing parties and organizations in Europe have used the explosions and refugees in order to spread their ideas.

Hundreds of young people have taken to the streets against such ideas with an anti-fascist struggle.

Moreover, the workers and youth in France are taking up the fight against the anti-democratic, labor law; for many months, the population has taken to the streets fighting for their future.

Turkey

Day by day fascism is gaining strength in Turkey, under the shadow of explosions and war; one single man, Erdogan, is increasing persecution and under him, a one-party dictatorship is being built. Due to this, the working class, the laboring people, youth and women are forced to live in a world of darkness and oppression. However, if they hide the sun from us we will fight in the darkness.

As youth of Turkey, we will continue our struggle for bread, peace, work and freedom. We say to the world that what we have done here we will bring back to our country in order to strengthen international solidarity.

Mexico

The regime’s offensive is against the youth and the whole Mexican people. The implementation of the 12 structural reforms is to ensure maximum profit and the plunder of our natural resources by imperialism, mainly U.S. imperialism.

To ensure this, the state is imposing measures with a fascist content; Mexico is now experiencing an arduous struggle due to the events of September 26 and 27, 2014, in Iguala, Guerrero, where the comrades of the Raul Isidro Burgos rural teacher’s college in Ayotzinapa were victims of one of the most shocking repressions in the country’s history. This led to the assassination of three student teachers by firearms with one of them being killed in the most brutal manner, with his face mutilated, and the arrest and disappearance of 43 student teachers by the state.

Also the National Coordinator of Education Workers (CNTE) is carrying out a nationwide strike calling for unity of all sectors of the country to combat the structural reforms, primarily the educational ones. Despite the repression that this process has undergone with a new massacre of 14 people in Nochixtlan, Oaxaca, last June 19, today we declare that the struggle against imperialism and its fascist violence should be taken up by the Mexican youth and people, defending in unity the rights we have gained and building a revolutionary process that will transform this system from its roots.

For the presentation alive of the 43 student teachers of Ayotzinapa 43 who have been detained-disappeared by the state!

Stop state terrorism; free the political prisoners!

Solidarity and struggle with the CNTE; down with the educational reforms and all the structural reforms!

Unity and struggle of all the anti-fascist and anti-imperialist youth!

Brazil

At the 25th IAFAIYC we state that we are living through a time of great political and economic backwardness in the country. This was no counter-revolution, because the 13 years of the Workers’ Party (PT) and its policy of class conciliation, called “coalition presidentialism,” in order to hide its actual content, never created any obstacles for the development of capitalism and the domination of the bourgeois class in the economy and politics of the country. This was done in order to protect the bosses of the workers and ensure the implementation of this policy. It is a fact that people had a number of guaranteed rights, particularly the right to demonstrate and in reality there were social programs that improved the living conditions of the poorest people, the real wage increase, the structural or deep transformation of the economy and politics. We are experiencing a period of great struggles of the youth, such as the more than 700 occupations of schools, the resistance in the universities against the cutbacks to student enrollment by the illegitimate government and the general strike of institutions and the demonstrations Temer Must Go that are now taking place at the Olympics.

The Brazilian youth have always taken part with all our energy in the main struggles of the country, in support of the workers and all our people. Today we continue to play the combative role on the road to major changes for solidarity, peace and freedom in the world; we are on the march towards socialism.
Colombia

The young people taking part in the 25th Anti-Imperialist and Anti-Fascist International Youth Camp, IAFAIYC-2016, held in Santo Domingo, Dominican Republic, from August 3 to 10, 2016, extend their embrace of solidarity and combat to the struggle of the Colombian people for their social liberation, for freedoms and rights and for the structural changes that the immense majority of the exploited and oppressed desire. In addition, we raise the banner of the importance of placing at the center of the debate the fight for a true peace with redistributive social justice, that is, a peace that challenges the profound relations of exploitation of man by man and the economic model that this entails.

These demands can only achieve the importance that they deserve, to the degree that a broad national dialogue on the situation in the country and the roots of the conflict is created, in order to begin the call for a National Constituent Assembly, of a democratic character and with full participation of the sectors and organizations that represent the people, analyzing all their demands and providing the conditions to choose a patriotic government of the people and for the people.

Long live the just struggles of the Colombian people!

Long live Peace with redistributive social justice!

National Constituent Assembly now!

Dominican Republic

The political system that prevails in the Dominican Republic excludes the youth from politics that are directed to the full development of their dreams and desires. The youth have been deprived of their right to study, to work and even sometimes their right to live, as a result of governments that have had as their main objective to keep our people steeped in ignorance and thus to perpetuate themselves in power without difficulty.

Equity and the inclusion in the decision-making of the state should have a wider participation of the youth. There must be guarantees for developing a program that truly represents us in all areas of the state, which is responsible for ensuring the people’s rights.

To summarize, organize and direct actions to take the power away from the ruling class is the most urgent task of the progressive and revolutionary youth of the Dominican Republic.

Long live the 25th International Anti-Fascist and Anti-Imperialist Youth Camp!!!
Long live the solidarity and unity of the peoples!!!

The Deindustrialisation of Contemporary Russia

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Tahir Asghar

The USSR, over the period of its tumultuous history, had built up a massive industrial, R&D and scientific potential so as to not only build a socialist society and defend it but also to secure its economic independence and growth and the full development of intellectual and material capacities of its population. Not only did the old industrial and scientific centres like Moscow and Leningrad witness massive expansion but many new such centres were set up in all the republics.

Moscow and its surrounding region continued to be the major economic region of the USSR, where the most diverse sectors beginning from aeronautic and cosmonautic, high tech defence industries and research institutions to linen and textiles factories were situated. The process and trends of economic and technological decline of the country in the period of restoration of capitalism find their particular reflection in the decline of these former centres of industrial and scientific excellence and their transformation into service hubs. What has happened there and is continuing to take place can be considered as a typical case of the overall trend of the shift in the emphasis towards the service sector on the rather flimsy ‘scientific’ hypothesis that all advanced economies are characterised by dominance of the service sector, totally contrary to the Marxist-Leninist position of the primacy of the sector of production of means of production as the foundation not only of the national economy but also as a determining condition for the real, not just formal, independence of a nation.

In the preceding 25 years, capitalism has expanded to become a truly globalised economic system. And during this period global capitalism has experienced a number of crises in many parts of the world – the South Asian crisis of 1997, the Russian crisis of 1998, the bursting of the tech bubble and finally the crisis of 2007 in the United States of America and then the crisis in the Euro zone. However, in the 1980s capitalism was being prescribed as the only system capable of providing sustained growth not only in the advanced capitalist countries, in the countries of the so-called Third World, but also in the countries of the socialist bloc. It was argued that only a market system based on private entrepreneurship produces optimal use of resources, minimises waste and maximises economic growth.

In the late 1970s the West experienced the information revolution. The spread of computer and information technology first to the corporate (manufacturing, small and medium businesses, retail, banking) sector and then to the households for personal use led to a sharp increase in labour productivity. At the same time the USA and UK saw the rise of right-wing political forces to power – Ronald Reagan in the USA and Margaret Thatcher in UK. Using the power of the mass media, prejudices of the middle class and above all the full force of the coercive apparatus of the state, they mounted a ruthless and ferocious assault on the working class in their respective countries and succeeded to a large extent in crushing the organised working class and trade union movement, from which it has yet to fully recover. They managed to convince large sections of the population that all the problems of capitalism can be resolved on the basis of the free play of market forces only if the ‘lazy’ and ‘pampered’ working class with its permanently increasing irrational demands was shown its place and the weak State that always gave in to their demands be withdrawn from active economic participation through the public sector, which needs to be privatised. So they argued and promptly proceeded to implement maximum deregulation of the production, distribution and exchange, withdrawal of the state from direct economic activity and curtailment of the power of workers organisations and trade unions.

Subsequently, policies based on these principles were not only sought to be promoted in, but also actively forced upon the developing countries of Latin America, Asia and Africa.

At about the same time that these changes were taking place in the UK and USA, the USSR, after a prolonged period of annual growth rates ranging between 4.5 and 6 percent, began to show signs of slowing down. The distortions in the economy that were in the making for a long time and serious shortcomings in the planning process unresolved since the Liberman reforms of the late 1960s began to manifest themselves with increasing severity, leading to serious shortfalls of many essential commodities and foodstuffs and deteriorating quality of social services all over the country. Further, the country found itself bogged down in an expensive, unexpectedly protracted and seemingly endless war in Afghanistan, putting additional pressure on government expenditure. This was also a time of political indecision as the ageing politburo and the Party leadership was proving to be increasingly incapable of asserting central control. This period from the late-1970s to 1985 is now generally referred to as the “stagnation” period.

The result was that the USSR appeared to be falling behind the West in economic development and increasingly unable to provide consistent growth in the living standard of the population. After a period in which three party secretaries came to power in quick succession, it was finally Gorbachev who was appointed the general secretary of the Communist Party of the USSR.

It was under his stewardship that the policy of Perestroika and democratisation was initiated. It appears that by this time the party leadership had factually come to the conclusion that the system of centralised planning has outlived its original role and is not capable any more on its own to provide the population with a growing standard of living, and needs to be supplemented, if not totally replaced (a view that was to become the official policy in just a few years time) by a non-state sector based on market principles. And thus with the passing of the bill on cooperatives and individual businesses, the foundation for private owned enterprises was laid. The passing of another Law on Enterprises also allowed management much more autonomy and freedom in decision-making, thereby diminishing further the power and capacity of the central authorities to control the enterprises. These measures and the political instability taken together led to a precipitous drop in the growth rate of the economy and plunged the country into a full-fledged economic crisis by 1989. Finally, the unsuccessful coup against Gorbachev and subsequent events leading to the dismantling of the CPSU and the Soviet Union imposed by Yeltsin, marked the end of the socialist world system.

Yeltsin and his group of advisers, all erstwhile high level functionaries of the CPSU, helped by their new found well-wishing ‘experts’ from the IMF and other financial institutions of the West, began, with all the zeal of the newly converted, to dismantle the whole structure and intricate network of the centrally planned economic system and replace it with an economy based on market mechanism and private property, i.e. capitalism. With this in mind a policy of stabilisation, liberalisation, privatisation and free foreign trade, already tried out in many other countries with disastrous consequences for most of them, nevertheless began to be carried out immediately in Russia. This policy came to be known as “shock therapy”. It was the beginning of the restoration of capitalism in Russia by Khrushchev’s ideological progenies.

The consequences in Russia of this transition to capitalism have been really shocking, especially in terms of its social costs. It still continues to exact its price – economic, social and (geo) political.

From a superpower, the country has been reduced to the status of a middle-order nation along with countries like India. From the second most powerful economy, just behind the United States, the country has been reduced to the status where it now stands alongside developing countries like Brazil and India. On many indicators of social development the country is now ranked alongside the least developed countries of the world.

The two books under review give a fairly complete and comprehensive picture of the decline of a country that was once one of the only two military and economic superpowers in the world and adequately describe the process and government policies resulting in this rather sorry state of affairs for a country endowed with all the wealth – intellectual and material – that no other country, with the exception of USA, can boast of.

The most striking feature of economic decline of the Russian Federation since 1991 has been the ‘de-industrialisation’ of the country accompanied by loss of its R&D and scientific leadership.

The book ‘Moscow City from an Industrial and Scientific Centre to a Collection of Shops and Offices’, by G.V. Krainev (Moscow, 2009), is a testimony to this process. It is a collection of articles describing and analysing the policy of reforms undertaken in the city of Moscow which has led to the destruction of the most organised and self-conscious section of the Moscow proletariat as the author says of both physical and intellectual labour. The book is divided into a number of themes which look at different aspects of the policy of capitalist reforms.

The ruling class of Russia, having concentrated in its hands unrestricted power following the dissolution of the CPSU, began to systematically undermine the very base of socialist production – large scale industrial production and its R&D and scientific support consisting of hundreds of scientific organisations and institutes employing hundreds of thousands of highly qualified personnel. This was done deliberately as part of the policy of converting socialist enterprises into capitalist undertakings of various forms. The industrial enterprises were first deprived of preferential access to financing their operations, by devaluing their assets, both old and new, through hyper-inflation and devaluation of the currency, by pushing these enterprises deep into debt and then letting them face international competition without any state support, and all this in the wake of disruption, following the collapse of the USSR, of the traditional ties with the other enterprises of the country that were suppliers of inputs or consumers for their products, by depriving the enterprises of new entrants of qualified and trained workers from the professional schools that were being hurriedly closed down and converted into play areas or shops and beauty salons, and lastly, declaring these enterprises insolvent, which then was used to demonstrate the ‘uncompetitiveness’ of the majority of enterprises built in the Soviet era.

It is also worth noting that these large-scale industrial enterprises were being carved up into innumerable small and medium joint stock and private companies, which appropriate from a fine-tuned production cycle the most valuable assets and resort to selling or liquidating the rest. The state also started to sell these enterprises to foreign buyers under the pretext of the need to increase the effectiveness of these enterprises. Such reorganisations, liquidations and bankruptcies of enterprises and factories have with time assumed massive proportions. In Moscow alone by the beginning of 2002 about 7000 were already liquidated and another 8000 were in the line (Krainev, p. 7). Thus already by 1999, as a consequence of the market reforms, the socio-economic structure of Moscow underwent a radical change. Moscow became centre of finance, business, trade and administration and the significance of industries as a factor of urban development has diminished drastically (Krainev, p. 8).

Industries are also increasingly becoming victims of speculation in land and real estate. The new Land Code of the country allows the owner of the factory to buy the land on which the factory is situated. This law has set in motion speculative activity related to land. The wealthier ‘entrepreneurs’ went on the offensive, buying out the workers’ shares of so-called unprofitable factories so as to take over the land, then close down the factories and build on this land offices, casinos, markets or malls and other such modern commercial units. Subsequently, this has become an epidemic affecting not only unproductive enterprises but also efficiently functioning and profitable ones (Krainev, p. 14).

Such processes on a national scale have brought about a radical change in the structure of the economy of the country as whole. Now, contrary to the situation earlier, the largest share in the growth of GDP is contributed by the export of fuel and energy resources and raw material and also because of high prices of these commodities on the international market. Only 2% of the growth in GDP can be attributed to the genuinely competitive sectors that have managed to counter imports and increase their own production. This has led to the degradation of critical sectors like manufacturing and agriculture, and over a period of15-20 years turn Russia from a producer country to an importer country especially of machines, equipment and food products and a country living off revenues largely from its oil exports. This is also reflected in the structure  imports that shows growing rates of import of machines and equipment between the years 2000 and 2006. Their share in the total imports grew from 31.1% in 2000 to 47.7% in 2006 (Krainev, p. 76). If in the period of market reforms and the spread and growth of capitalism in Russia, the industrial sector as a whole was the biggest victim; the situation of the manufacturing sector, especially that of machine building and engineering sectors, producing means of production can be described as disastrous.

This situation finds its reflection as in a mirror in the economic structure of Moscow. Since 1991 the structure of industrial production in Moscow has witnessed similar and significant change. Once the hub of production of modern machinery and engineering equipment, of sectors at the forefront industrial development, today the picture can only be termed as dismal. The leading industrial sector in the city is the food processing industry, both in terms of rates of growth and scale of production. The enterprises of the food industry account for a third of all the realised produce of the city, between 28 and 32% in monetary terms. During the reforms of the industrial sector of the city, the machine-building and metal-working industries have completely lost their former leading positions and now occupy a subordinate position, constituting only about 25% in total volume of industrial production. Thus even according to official statistics the real fact is that the these two sectors of industry, the very core of industrial production, now together constitute only 2% of the Gross Regional Product of Moscow (Krainev, p. 82). “Machine building industry, which forms the technological foundation of all industry, and which under the Soviet Union effectively satisfied the requirements of all the branches of heavy, light and other industries, the requirement of the colossal national economy of the USSR, has been liquidated for all practical purposes” (Krainev, p. 92). Only the production of consumer goods and control systems is increasing and the production of the means of production is significantly on a decline. In this way a slow ticking bomb is being placed under the ground of national industries that will ensure dependence on supplies of technology from abroad for many years to come (Krainev, p. 93).

The Gross Regional Product also depends on the scale of investments in the economy of the region. The data of the Russian Statistical Committee differentiates between investments in fixed capital and foreign investments. Though investment in fixed capital shows growth in absolute terms in roubles, its share in the Gross Regional Product of Moscow has stagnated at around 11% and only towards the mid-2000s began to outstrip inflation. According to official data, one third of the investments is directed to overhauling of machines, equipment and means of transport. However, reports in the media suggest that not more than 6% of fixed equipment, much less than the required 8%, does not even ensure simple reproduction. In many enterprises equipment that was installed during the Stalin period is still in use. If we look at the sector-wise structure of investments, the largest share of investments flows into the transport and housing sectors (26% and 25% respectively) while only slightly more than 7% flows into the industrial sector, even less than in communications which stands at about 11%. These facts show that renewal of fixed capital in the industrial sector is not a priority for the authorities (Krainev, pp. 95-96).

The volume of foreign investments has been rising consistently since 2000. If in 2000 it was around US $4 billion then in 2006 it was approximately US $24 billion. According to the city authorities the most attractive areas of foreign investments in the economy of Moscow are trade, hotels, eateries and restaurant business, transport and reconstruction of large buildings. According to official statistics foreign investment in the industrial sector of the city is just a meagre part of the overall flows with a major part going into trade and food services (Krainev, pp. 98-99). Retail trade (malls, showrooms, boutiques), wholesale trade, production of beer, hotel business, all those areas that bring in quick and relatively high returns, have turned out to be the most attractive destinations for foreign direct investments. It is widely commented that sectors like machine building and the engineering industry, high technology, processing industry have not been able to attract any significant amount of foreign investments. Both Russian and foreign investors so far have shown interest primarily in areas that ensure high profits in the short term with a minimum of risks.

All these factors find their reflection in official economic data for Moscow: growth has been significant in production of electrical and optical equipment, means of transport, production of rubber and plastic goods, wood processing and wooden items and leather goods. Growth rates have declined in production of chemicals, metallurgy and metal items, machines and equipment (heavy and light), textiles and garments. The last two have seen in significant and consistent decline (Krainev, p. 111).

These radical changes in the structure of the national economy as exemplified by the experience of the erstwhile most powerful economic, scientific and R&D hub of the country – the city and region of Moscow – have negatively affected the technology and technical institutions, scientific research institutes and R&D organisations in the city and, consequently, the status and conditions of living of hundreds of thousands of workers and highly qualified scientists and technicians.

O.A. Mazur’s book ‘Development of the Workforce of Contemporary Russia’, (St. Petersburg University Publication, St. Petersburg, 2009) analyses the factors behind the Russian Federation’s relative social and technological backwardness and attempts to identify the contradictions in the development of social capital. He too highlights the decline of the industrial sector in Russia in general and of manufacturing in particular which now employs significantly fewer employees than during the Soviet period. There has been a 36% decline in the number of employees in industries (38.2% in machine-building sector) and a simultaneous ‘catastrophic’ decline in the number employed in science and R&D – 50%. Trade and finance sectors witnessed a high growth in the number of employees. According to him, industry continues to remain in a state of stagnation and only the best part of it has regained the levels of the late 1980s, a period that itself was one of negative growth (p. 42). Within industry too regressive shifts can be observed in the structure of employment – increase in the share of extracting industries accompanied by a decreasing share of employment in machine-building and light industries, i.e. exactly those industries that together account for the largest share in value addition.

These shifts are ultimately responsible for the terrible conditions that have resulted in extremely grim social development indicators: high rates of mortality in the working age group of the population and fall in the educational and skill levels of the workforce, food consumption and living conditions. Mortality in Russia is almost double that of the USA, France and Netherlands. The average life span for the whole population is 67 years, while it is 72 years for women and only 56 for men. This is about 10-15 years lower than in the West. Only 58% of the young men of the age of16 presently are expected to live until 60 years. The number of deaths in the working age group is catastrophically high and exceeds the levels in advanced countries by a factor of 1.5 – 2. Diseases related to the blood circulatory system are the main causes of this decline in the average life span of men and unnatural deaths among women, pointing towards deterioration of social conditions. Consumption of tobacco, generously supplied by the multinationals, along with alcohol consumption is also among the leading factors of high mortality rates in Russia (Mazur, p. 31).

A steep fall in the real wages of the majority of the population resulted in the decline of living conditions: food consumption, housing, fewer opportunities for recreational activities. All these also have been a major factor in the low life-span of the Russian population (Mazur, p. 30).

According to this author no fewer than 25% of men in the working age group are either totally or partially unfit to work. These and other factors of high mortality and incapacity to work in the Russian Federation have yet to be overcome, but now exert a cumulative affect (Mazur, p. 32). A comparison of the same indicators of health in the Russian Federation and UK shows that if in 1965 they had a broadly similar level of mortality due to curable diseases then by the end of 1990s in Russia it was about 3 times more than in UK. Mortality due to diseases related to blood circulatory system and infectious diseases in the Russian Federation is 3-4 times higher than in the USA, Norway and France.

The trend of decreasing employment in the industrial sector of Moscow observed by Krainev is also characteristic of the country as a whole, as shown by Mazur. In the 1990s according to Mazur the sectoral structure of the Russian economy changed dramatically and looked more like the structure of a pre-industrial economy. Since then not much change has occurred. The tendencies of the 1990s continue to dominate. The industrial sector has witnessed a 36% fall in the number of employed, agriculture – 20%, and construction – 23%, while there has been an 103% increase in the number of employed in the finance sector, in trade – 85%, and in State administration – 85%. Maximum loss of employment has occurred among the less-skilled workers of industry and construction sectors.

Regressive shifts can also be observed within the industrial structure of employment. There has been an increase in the share of employed in the extracting industries (from 12.5% in 1990 to 24% in 2005) while the share of machine-building and engineering sector in the total number of employed in industry declined from 38.2% to 26.4%, and of light industry from 11% to 6% over the same period of time (Mazur, p. 43). The changes thus have occurred in sectors that have the potential to add maximum value and in the case of machine-building and engineering sector, in addition, the ability to provide technological progress.

Thus, looking at the decline of the sectors that form the very basis of technological progress, it is hard to imagine how Russia can regain its position as a world leader in production and science and R&D. Manufacturing sector of industry, and more particularly machine-building and engineering sectors (Department A in Soviet terminology) are the crucial sectors that produce means of production for production of means of production and constitute the backbone, the basis of its security, independence, power and the future of scientific and technological development. Ignoring this fact would lead to colossal material and territorial losses, lagging behind in the development of the productive forces of the country and would give rise to serious problems in maintaining the military- defensive capabilities of the state.

Machine-building and engineering are foundational branches of industry and determine the course and nature of future industrial development, as it is in this sector that almost all the breakthrough discoveries and innovations take place. Having lost our own industries we lose everything: science, a highly-skilled work force, modern defence production, war-ready army and in the final count our economic and political independence.

It is clear that the real economic and political sovereignty of the state is determined by whether or not the state is capable of independently producing the crucial means of production for all other type of production. To put it simply, whether or not the state can produce in sufficient quantity machines and equipment needed for the core branches of the industry. From this perspective, the future of sovereignty of the Russian Federation is quite bleak (Mazur, p. 112).

Source

ICMLPO: After ’Brexit’ – The struggle against ‘United Europe’ of the monopolies and neoliberalism must be intensified, mainly fighting against one’s ‘own’ bourgeoisie

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The British referendum to remain in the European Union or to leave resulted in a vote for Brexit that was not anticipated by the European and global elite, the capitalist governments and media, presidents and financial speculators. In spite of a major campaign of intimidation, the majority voted to reject the EU and Cameron’s scheme. This has been a major blow to the EU elite and the plan to complete the building of the ‘United States of Europe’ by 2025 and has left not only the UK, but also the EU in an uncertain political situation, where many different forces are trying to assert themselves.

The Leave-vote was not a vote of the right; it was not a racist or xenophobic vote, as the fervent supporters of the European Union try to tell. It was a broad popular vote of 52 percent against 48, solidly rooted in the British working class. It was a vote of the workers, of the popular masses, of the poor against the rich, of the ordinary people against the bankers and financial wizards of the City of London, assisted by divisions within the British bourgeoisie and its ruling party. It expressed their wish to regain sovereignty and to reverse the neoliberal platform of the European Union that makes the rich richer and broad working and popular masses ever poorer.

Both in Scotland and Northern Ireland a majority voted to remain in the EU. This reflects the protests against the reactionary imperialist and colonialist English bourgeoisie and unclarity about the class essence of the United Europe of the monopolies. Forces fighting for the unification of Ireland and for Scottish independence have demanded referendums to this end. This is the right of oppressed nations.

But to kick out one reactionary imperialist bourgeoisie to replace it with the united reactionary and imperialist bourgeoisie of the EU is not in the interest of the workers or the broad masses of any nation.

The European Union is the project of the European monopolies, their governments and political parties for a single market of maximum profits protected by tariff walls and now with barbed wire to prevent refugees from bombs, wars, hunger and exploitation from crossing the borders. The United States of Europe is a vision of a new imperialist and neocolonialist superpower, impossible or reactionary all along the line. It is not a project of peace, of prosperity and welfare, of the peoples. Neoliberalism is its economic doctrine, established in the treaties of the EU and obligatory politics of the member countries, accentuated by the rule of the Euro that was imposed in most countries of the Union.

Where referendums have been held about the basic treaties implementing closer integration and new steps in the economic, monetary, political and military union, the results have in most cases been resounding No’s that have been discarded in practice. So-called populist right forces have been able to take political advantage of this ever-increasing anger with both the practical implementation of the economic and political dictates that have impoverished broad strata and with the plans for new steps towards more of the same. They have presented themselves as the defenders of the nation and the national interests against the EU, distorting the true class character of the European Union, scapegoating the immigrants and refugees as the cause of the impoverishment of the broad masses. The ‘struggle’ of these forces against the United Europe of the monopolies is weak, inconsistent and divisive. Exactly for these reason they are strongly promoted by the bourgeois media, which are seeking to hide the class character of the struggle against the European Union and its super-state.

Let us condemn, unmask and vigorously combat the movements and parties of the extreme right, the nationalists, racists and fascists that use a “social” demagogy to help the bourgeoisie divide and exploit the workers and the popular masses, clip freedoms and political rights of the peoples.

The social-democratic, socialist and left reformist forces of the EU and the trade union organizations that they lead have been partners in the creation of the monstrous European Union of today, of the disastrous Euro and the devastating neoliberal policies – while at the same time promoting the idea of a better EU, a reformed Union, a Europe of the peoples, a ‘social’ Europe. These are illusions that serve the monopolies. Facts and all experience show that the EU cannot be reformed to the advantage of the workers and peoples. If the shackles of the neoliberal anti-worker and anti-people treaties and institutions of the EU shall be broken, they must be abolished. The EU and the euro are failed projects.
The reformists and especially the left reformist ones like the European Left Party and its member parties from Syriza and Podemos to the German Die Linke and the French Parti Gauche, play a very dirty role as defenders of the European Union, while they promote themselves as strong forces against neoliberalism. This is a fraud as demonstrated by the Syriza government. They have opposed the creation of broad popular movements combining the struggle against the European Union with the struggle against neoliberalism, and replaced the class antagonism between Capital and the workers with a political struggle between left and right.

This position of the left reformists will inevitably, when no strong and broad movements against the European Union and the euro exist in a specific country, leave an open field for the right populist EU critical forces, who engage in social demagogy and concerns for the plight of the working masses. The left reformists are guilty of a great betrayal.

The struggle against the neoliberal EU is not only manifest in the movements to leave the Union and for referendums in various countries about leaving the Union or abolishing the Euro, but also in the labor struggles and broad popular struggles against the neoliberal political and economic reforms implemented in all the countries of the EU. All these reforms carry the stamp of the European Union, such as the labor reform promoted by the Hollande government, the so-called law “El Khomri”, which the French workers and combative trade unions are heroically fighting in spite of police state measures.

We express our full support to the workers, the young people and the popular masses, to their combative organizations, that are struggling against the neoliberal and reactionary reforms, despite the repression and the criminalization of the protest; we invite all the workers and the oppressed peoples to develop international solidarity more and more.

Such concrete struggles must promote the political struggle against the EU and reject the illusions that the European Union can be reformed into a progressive institution in the service of the workers and peoples. The reactionary pro-EU bourgeoisie of each country is weakened outside the institutions, framework and treaties of the Union. Class solidarity of the workers transcends national borders within and outside the European Union.

In the UK the workers’ movement and the progressive and revolutionary forces must rise to stop the plans of the different factions of the bourgeoisie to eliminate the result of the referendum or to impose new neoliberal measures, to ferociously attack the migrants and burdens on the masses around a Brexit-agreement with the EU.

The Brexit vote has encouraged popular and workers forces all over the European Union and outside it to strengthen their struggles. Broad movements in the EU are developing, demanding referendums in their counties to leave or to remain. In countries with special agreements with the EU such as Norway and others the struggle against their neoliberal nature is developing.

In this scenario, it should be clear that to break up with the European Union is an empty slogan if is not closely linked to the struggle of the workers, the labouring masses and the peoples against the dominant classes of their own country and their reactionary and opportunists servants.

The struggle against the European Union will be successful only if is founded on the solid base of the struggle of the working class and the broad popular masses against their own bourgeoisie to defeat it.

Therefore, broad workers and popular fronts should be created, or strengthened where they already exist. They should fight for the economic and political interests of the workers, for the democratic liberties of the oppressed majority, against the imperialist wars and the warmongering alliances like NATO, against militarization and the formation of police States, for sovereignty and national independence, for the rights of nations to manage their own affairs and destiny.
The lessons of the referendums in the countries of the EU, and also of the Brexit, is that the protests and the economic battles against the consequences of the crisis and the neoliberal and austerity measures necessarily become a political fight against the bourgeois governments and the supranational institutions of capital. Our task is to indissolubly tie both of them in one class struggle of the proletariat to defeat the bourgeoisie and build the new society without the exploitation of man by man.

July 2016

Coordinating Committee of the International Conference of Marxist-Leninist Parties and Organizations (ICMLPO)

Karl Marx on Alienated Life Under Capitalism

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“By counting the most meagre form of life (existence) as the standard, indeed, as the general standard – general because it is applicable to the mass of men. He turns the worker into an insensible being lacking all needs, just as he changes his activity into a pure abstraction from all activity. To him, therefore, every luxury of the worker seems to be reprehensible, and everything that goes beyond the most abstract need – be it in the realm of passive enjoyment, or a manifestation of activity – seems to him a luxury. Political economy, this science of wealth, is therefore simultaneously the science of renunciation, of want, of saving and it actually reaches the point where it spares man the need of either fresh air or physical exercise. This science of marvellous industry is simultaneously the science of asceticism, and its true ideal is the ascetic but extortionate miser and the ascetic but productive slave. Its moral ideal is the worker who takes part of his wages to the savings-bank, and it has even found ready-made a servile art which embodies this pet idea: it has been presented, bathed in sentimentality, on the stage. Thus political economy – despite its worldly and voluptuous appearance – is a true moral science, the most moral of all the sciences. Self-renunciation, the renunciation of life and of all human needs, is its principal thesis. The less you eat, drink and buy books; the less you go to the theatre, the dance hall, the public house; the less you think, love, theorise, sing, paint, fence, etc., the more you save – the greater becomes your treasure which neither moths nor rust will devour – your capital. The less you are, the less you express your own life, the more you have, i.e., the greater is your alienated life, the greater is the store of your estranged being.”

– Karl Marx, “Human Requirements and Division of Labour Under the Rule of Private Property,“ The Economic and Philosophical Manuscripts of 1844.

Lin Biaoism and the Third World: How Idealism Distorts Class

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by Espresso Stalinist

An odd phenomenon is haunting the halls of Maoism – a chauvinist set of ideas loosely forged from the writings of Chinese military officer and politician Lin Biao. These ideas, to the extent to which they form coherent ideology at all, can roughly be termed “Lin Biaoism.” To be perfectly clear, I am under no impression that “Lin Biaoism” is an entirely new ideology. Lin Biao’s works are not significant enough to constitute a new stage of revolutionary science. What does exist is a wing of Maoism, usually associated with the “third-worldist” variety, that upholds the works of Lin Biao in theory and practice. The ideology, such as it is, is not worth refuting. However, its underlying assumptions about proletarian internationalism, imperialism, revolutionary theory and practice are.

I fully expect upon publication these thoughts will have piles of ashes heaped upon them as “first worldism,” as “a total misrepresentation” of the ideas I criticize, and overall rejection of this piece as a reactionary and revisionist writing dedicated to attacking Lin Biao’s theories. But this is par for the course with “third-worldists” of all kinds, who much like anarchists dismiss all criticisms by claiming the author knows not what they criticize. In this essay, I am not concerned with what I allegedly do not know – I am only concerned with what we do know. In this case, what we know about the problems in Lin Biao’s theories.

Lin Biao (1907-1971) was a Chinese revisionist military officer and politician. Born in December 5th, 1907, he graduated from the famous Whampoa Military Academy, then under the command of Chiang Kai-shek. After graduation he joined the armed forces of the Kuomintang (KMT) or Nationalists. During the Northern Expedition he joined the Communist Party. Following the 1927 Shanghai massacre of thousands of workers, trade unionists and Communist Party members, which began the Chinese Civil War, Lin defected to the Red Army. He participated in the Long March and became known as one of the CPC’s most brilliant military commanders and an authority on guerrilla warfare. During the Japanese invasion of China, Lin commanded troops in the Battle of Pingxingguan, one of the few battlefield successes for the Chinese during the first period of the Second Sino-Japanese War. He was forced to retire from active service in 1937 after a serious battlefield injury complicated by tuberculosis and left for Moscow, where from 1937 to 1942 he acted as the representative of the CPC to the Executive Committee of the Communist International, or Comintern.

After the end of World War II and the Soviet liberation of Manchuria from the Japanese, fighting resumed between the Communists and Nationalists. Lin led victorious campaigns of the People’s Liberation Army (PLA) in Manchuria and throughout Northern China against the KMT forces, including the famous Pingjin Campaign, which led to the liberation of Beijing in 1949. His forces then resumed attacks on the KMT in the southeast, which led to securing the major cities of Wuhan and Guangzhou. He was named one of the “Ten Marshals” after the Communist victory and the proclamation of the People’s Republic of China in 1949. Lin mostly abstained from participating politics in the 1950s. In 1962 Lin succeeded Peng Dehuai as commander of the PLA, starting a rectification program among officers and soldiers stressing political education, eventually culminating in the abolition of ranks in the PLA. Lin would rise to political prominence again during the Cultural Revolution.

Lin Biao was the most prominent supporter of the cult of personality around Mao, working to develop it within the PLA in particular. In 1964 it was he who compiled some of Mao’s writings into a handbook, Quotations from Chairman Mao Tse-tung, also known as the Little Red Book, and ensured it was mass-produced and distributed, first within the PLA, and then throughout the entire People’s Republic.

In September 1965, Lin Biao’s most famous work, “Long Live the Victory of People’s War!” was published, which contains the vast majority of his political theories. It heavily promoted Mao Tse-tung’s theory of people’s war:

“Comrade Mao Tse-tung’s theory of people’s war has been proved by the long practice of the Chinese revolution to be in accord with the objective laws of such wars and to be invincible. It has not only been valid for China, it is a great contribution to the revolutionary struggles of the oppressed nations and peoples throughout the world. [….] Comrade Mao Tse-tung’s theory of people’s war is not only a product of the Chinese revolution, but has also the characteristics of our epoch.”

And even proclaimed it to be universal:

“It must be emphasized that Comrade Mao Tse-tung’s theory of the establishment of rural revolutionary base areas and the encirclement of the cities from the countryside is of outstanding and universal practical importance for the present revolutionary struggles of all the oppressed nations and peoples, and particularly for the revolutionary struggles of the oppressed nations and peoples in Asia, Africa and Latin America against imperialism and its lackeys.”

It heavily supported the Maoist theory of the revolutionary movement spreading from the countryside to the cities:

“The countryside, and the countryside alone, can provide the broad areas in which the revolutionaries can manoeuvre freely. The countryside, and the countryside alone, can provide the revolutionary bases from which the revolutionaries can go forward to final victory.”

Lin Biao believed this even to the point of arguing against the modernization of the PLA in favor of people’s war. More significantly, in perhaps the most influential part of his pamphlet to modern-day “Lin Biaoists,” Lin Biao applies the Maoist concept of people’s war to the international situation:

“Taking the entire globe, if North America and Western Europe can be called ‘the cities of the world’, then Asia, Africa and Latin America constitute ‘the rural areas of the world’. Since World War II, the proletarian revolutionary movement has for various reasons been temporarily held back in the North American and West European capitalist countries, while the people’s revolutionary movement in Asia, Africa and Latin America has been growing vigorously. In a sense, the contemporary world revolution also presents a picture of the encirclement of cities by the rural areas. In the final analysis, the whole cause of world revolution hinges on the revolutionary struggles of the Asian, African and Latin American peoples who make up the overwhelming majority of the world’s population.”

At the 11th Plenum of the 8th CC in August 1966, a meeting presided over by Mao and guarded by Lin’s troops, the famous big-character poster reading, “Bombard the Headquarters!” was unveiled, written by Mao himself. This was a declaration of war against the “right” elements Liu Shaoqi, Deng Xiaoping and other leaders of the party apparatus, and the practical launching of what would come to be called the “Great Proletarian Cultural Revolution.” During the Cultural Revolution, after initial control by the Red Guards proved too tenuous the PLA under Lin Biao’s command effectively took over the role of controlling the country previously held by the Communist Party. The GPCR had virtually destroyed the Communist Party and liquidated its organizations, but had greatly strengthened the political role of the army, which largely controlled the provincial Revolutionary Committees and many Ministries and economic enterprises.

The Ninth Congress of the Communist Party of China was held in 1969, during which former President Liu Shaoqi was removed from all posts and expelled from the party. During this Congress Lin built up the cult of Mao more than ever, declaring Mao’s though to be a “higher and completely new stage” of Marxism. He summed up the ideology of Maoism, then called “Mao Tse-tung Thought,” thusly:

“The Communist Party of China owes all its achievements to the wise leadership of Chairman Mao and these achievements constitute victories for Mao Tsetung Thought. For half a century now, in leading the great struggle of the people of all the nationalities of China for accomplishing the new-democratic revolution, in leading China’s great struggle for socialist revolution and socialist construction and in the great struggle of the contemporary international communist movement against imperialism, modern revisionism and the reactionaries of various countries, Chairman Mao has integrated the universal truth of Marxism-Leninism with the concrete practice of revolution, has inherited, defended and developed Marxism-Leninism in the political, military, economic, cultural, philosophical and other spheres, and has brought Marxism-Leninism to a higher and completely new stage. Mao Tsetung Thought is Marxism-Leninism of the era in which imperialism is heading for total collapse and socialism is advancing to world-wide victory. The entire history of our Party has borne out this truth: Departing from the leadership of Chairman Mao and Mao Tsetung Thought, our Party will suffer setbacks and defeats; following Chairman Mao closely and acting on Mao Tsetung Thought, our Party will advance and triumph. We must forever remember this lesson. Whoever opposes Chairman Mao, whoever opposes Mao Tsetung Thought, at any time or under any circumstances, will be condemned and punished by the whole Party and the whole country.”

During his report to the Ninth Congress, Lin went so far as to proclaim that according to Marxist theory, the main component of the state is the military:

“The People’s Liberation Army is the mighty pillar of the dictatorship of the proletariat. Chairman Mao has pointed out many times: From the Marxist point of view the main component of the state is the army.”

Lin Biao was built up as Mao’s successor to such an extent that during the Ninth Congress, one of the very few congresses held in Chinese history, the idea of Lin as successor in the event of Mao’s resignation or death was literally written into the Constitution of the CPC. It was passed on April 14th, 1969. It stated:

“Comrade Lin Piao has consistently held high the great red banner of Mao Tse-tung’s Thought and he has most loyally and resolutely carried out the defended Comrade Mao Tse-tung’s proletarian revolutionary line. Comrade Lin Piao is Comrade Mao Tse-tung’s closest comrade-in-arms and successor.”

This favored position would not last. A mere four years later, on August 1973, the Tenth Party Congress stated:

“The Congress indignantly denounced the Lin Piao anti-Party clique for its crimes. All the delegates firmly supported this resolution of the Central Committee of the Communist Party of China: Expel Lin Piao, the bourgeois careerist, conspirator, counter-revolutionary double-dealer, renegade and traitor from the Party once and for all.”

The events leading up to this posthumous denunciation are highly controversial. Lin Biao, along with several members of his family, died mysteriously in a plane crash over Mongolia in September 1971 in circumstances that are still heavily in dispute. It is generally accepted he was trying to flee to the Soviet Union. According to the official Chinese version of events, Lin Biao had attempted to initiate a pro-Soviet coup d’etat that would topple Mao Tse-tung and Zhou En-lai from power to establish a military dictatorship in China, and when he failed in this endeavor, he attempted to flee and sought refuge in the U.S.S.R. As the plane approached the Mongolian border, a gun fight broke out, causing it to crash. Whatever the case, Lin Biao and all on board died in the crash.

In his political diary, Albanian Marxist-Leninist leader Enver Hoxha characterized the Lin Biao affair as more frivolous than a James Bond thriller:

“The question arises: Why should Lin Piao murder Mao and why take his place, when he himself occupied precisely the main position after Mao, was his deputy appointed by the Constitution and by Mao himself? Lin Piao had great renown in China. The Cultural Revolution, ‘the work of Comrade Mao’, had built up his prestige. Then, what occurred for this ‘mutual political trust and the same ideological conviction’ between Mao and Lin Piao to suddenly disappear to the point that the latter organized an attempt on Mao’s life? And this act looks like an episode from ‘James Bond’”

(Hoxha, Reflections on China Vol. I, p. 465).

The rift between Mao and Lin needs to be expressed in solid political terms and not personal terms such as “lust for power” or “jealously” as bourgeois historians are so fond to do. Hard evidence on this matter seems to be scarce due to a lack of surviving evidence, but a few things are undeniable.

For example, Lin was on his way to the Soviet Union because of a split with Mao and his supporters over domestic and foreign policy. In September 1970, the grouping around Mao Tse-tung pressed for a Fourth Five-Year-Plan, which involved a massive program for mechanization of agriculture to be financed by reducing expenditure on the armed forces. This reduction was to be made possible by bringing about a détente with the United States. Lin Biao’s pro-Soviet faction opposed détente with the U.S. This was denounced by Mao and Zhou’s group as “ultra-leftism.” In December 1970, a movement began for a revival of the provincial Communist Party committees, which had been shattered by the Cultural Revolution. This was strongly opposed by Lin and the army leadership, since it would threaten the military’s ascendancy.

I see only two possibilities to this story, and both are somewhat related:

1) Lin Biao did plan and attempt to carry out a military coup against Mao because he wanted to “save” the country and the party from what he saw as a wrong course, or;

2) It was a conspiracy of the more pro-American elements of the CPC, including Mao and Zhou Enlai, to eliminate the most prominent opponent to their domestic and foreign policy.

In either case, clearly there was a huge rift with Mao’s policies, including regarding military control following the GPCR, and the controversial Chinese foreign policy of the late 1960s and 70s.

It is clear that the contradiction between Mao Tse-tung and Zhou Enlai’s group and Lin Biao’s group was a conflict between the wings of the CPC supporting reconciliation and alignment with U.S. imperialism and modernization of society, and supporting rapprochement with Soviet social-imperialism and the continuation of Lin’s “people’s war’ policies, respectively. In December 1970, Mao Tse-tung said American journalist Edgar Snow that he would like to meet President Nixon, and in July 1971, U.S. diplomat Henry Kissinger made a secret visit to China. People’s Daily announced soon after that Zhou Enlai had extended an invitation to Nixon to visit China. This no doubt further inflamed conflicts, and it was obvious there were rifts in the Party from 1970-71.

Declassified transcripts of Mao’s conversations with Nixon record him making an unmistakable reference to the “Lin Biao Affair” in 1972:

President Nixon: When the Chairman says he voted for me, he voted for the lesser of two evils.

Chairman Mao: I like rightists. People say you are rightists, that the Republican Party is to the right, that Prime Minister Heath is also to the right.

President Nixon: And General DeGaulle.

Chairman Mao: DeGaulle is a different question. They also say the Christian Democratic Party of West Germany is also to the right. I am comparatively happy when these people on the right come into power.

President Nixon: I think the important thing to note is that in America, at least at this time, those on the right can do what those on the left talk about.

Dr. Kissinger: There is another point, Mr. President. Those on the left are pro-Soviet and would not encourage a move towards the People’s Republic, and in fact criticize you on those grounds.

Chairman Mao: Exactly that. Some are opposing you. In our country also there is a reactionary group which is opposed to our contact with you. The result was they got on an airplane and fled abroad.

Prime Minister Chou: Maybe you know this.

Chairman Mao: Throughout the whole world, the U.S. intelligence reports are comparatively accurate. The next was Japan. As for the Soviet Union, they finally went to dig out the corpses, but they didn’t say anything about it.

Prime Minister Chou: In Outer Mongolia.”

Before long, China threw off its former policy of anti-imperialism, arguing for a strengthening of NATO, support for German reunification and West European integration, support for U.S.-Japanese Security Treaty, declining support for national liberation movements in South Asia, its support for reactionary “liberation” movements supported by imperialist powers (such as UNITA in Angola), and its support of the semi-colonies of imperialist powers, such as Iran, Pakistan, Zaire, fascist Chile and the Philippines.

So, now that I’ve finished this grand history lesson, how does this relate back to modern Maoism? More than you might think after reading, actually. Maoist supporters of the “new-democratic” theory of the Chinese Revolution, as well as the peasant-based theory of “people’s war” largely seek their justifications in Lin’s pamphlet. We have already examined Lin’s representation of the international situation in his 1965 pamphlet. Lin Biao, in an attempt to apply the Maoist concept of people’s war to the international struggle, pioneered an early version of Mao’s later “theory of three worlds” which perceives the world as being a global countryside surrounding a global city. His line as expressed in “Long Live The Victory of People’s War!” represents the absolutizing of the contradiction between imperialism and oppressed nations – and that, more than anything else, is what is key. Lin Biao’s ideas do not speak of the contradiction (at the time) between two opposing systems, socialism and capitalism, or of the contradiction between capital and labor in the capitalist countries, or of the contradiction between the imperialist powers. He misunderstands the entire foundation for the modern revolutionary movement, and raises his vision of the “global countryside” surrounding the “global city” out of dialectical context, treating it as the principal contradiction in the world.

Modern third-worldism is largely based on Lin Biaoism, though it has perhaps its earliest roots in the theories of Mirza Sultan-Galiyev. Sultan-Galiyev was a Tatar pan-Islamic nationalist opposed by Lenin and Stalin. He later began conspiratorial activity, including tried to ally with Trotsky but was rejected, and had ties to the anti-Soviet counterrevolutionary Bashmachi movement. Among other beliefs, Sultan-Galiyev thought that the Muslim peoples were “proletarian peoples” and thus national movements among them were socialist revolutions, that in places inhabited by Muslims, the Communist Party should “integrate” with Islam, which should be brought about by a special Muslim party, and that geographically large territorial units should be formed embracing as many Muslims as possible. He had dreams of creating a pan-Turanian Turkish-Tatar state stretching across Central Asia. He was eventually arrested for his conspiratorial activity and died in prison. Like Sultan-Galiyev, Lin Biao’s analysis is not class-based, and in fact Lin’s pamphlet contains theses very similar to that of “Sultan-Galiyevism”:

“If North American and western Europe can be called ‘the cities of the world’, then Asia, Africa and Latin America constitute ‘the rural areas of the world’…the contemporary world revolution…presents a picture of the encirclement of cities by the rural areas. In the final analysis, the whole cause of world revolution hinges on the revolutionary struggles of the Asian, African and Latin American peoples.”

Obviously, no Marxist can deny the contradiction between the imperialist powers and the colonial and semi-colonial countries, which is a major contradiction in the world we live in. Independence and national liberation struggles for independence and national sovereignty led against imperialism is a just struggle which deserves the support of Marxist-Leninists and the world proletariat. But that’s not all Lin Biao does. Here, while recognizing the existence of revolutionary situations and movement in countries in the “third world,” he treats the “third world” as an undifferentiated whole, exaggerating this situation into one in which the entire “third world” is ripe everywhere for revolution. What is also striking about his “countryside versus city” division of the world is his non-class view of the “third world,” its omission of the basic contradiction between the proletariat and the bourgeoisie and its disregarding of classes and class struggle within those countries, and an utter lack of analysis of the class nature of the regimes which rule there. This way the contradiction between the oppressed peoples and the reactionary and pro-imperialist powers is absolutized.

But the modern preachers of Lin Biaoism go further than to label the “third world” as leader of the liberation movement or the main force in the struggle against imperialism – frequently they proclaim it the only revolutionary force in the world. But to speak about the “third world” as the main force against imperialism and as the main force of the revolution such as the followers of Lin Biaoism, of third-worldism and other theories do ignores (or in some cases intentionally glosses over) the objective fact that the majority of the countries of the “third world” are ruled by agents of imperialism and neo-colonialism. The international view of Lin Biaoism belittles the size and importance of the comprador bourgeoisie and other pro-imperialist forces of the “third world.” To speak of the “third world” as a undifferentiated whole without making any distinction between genuine anti-imperialist revolutionary forces and pro-imperialist, reactionary and fascist ruling classes is to abandon the class struggle and the teachings of Marxism-Leninism openly. It means nothing less than to preach opportunism which cause confusion and disorder among the revolutionary proletariat.

Further, Lin Biaoism says that these countries are the “main anti-imperialist force” in the world. It logically stands to reason that it is not the business of revolutionaries to topple this “main force.” By now, it becomes increasingly apparent that Lin Biaoism is not a scientific approach to Marxism and is in opposition to proletarian internationalism. Lin Biao’s theories deny the role of the vanguard party in both the “third world” and the “first world” nations. Lin Biao’s concepts obscure the character of class struggle, creates illusions and misleads the people. Lin Biaoism is claimed by its followers to be the strategy for revolution today, and yet this strategy has no place for the proletariat or the Marxist-Leninist party. It claims to be a valuable contribution towards a proper analysis of the forces of the world, and yet classes are not mentioned.

Lin Biao’s theoretical understanding is eerily similar to that put forward by Karl Kautsky at the beginning of the century. Kautsky, on the eve of the First World War, postulated that in the field of international relations, a new age was approaching “in which the competition among states will be disabled by their cartel relationship.” He argued “there is nothing further to prevent […] finally replacing imperialism by a holy alliance of the imperialists.” This state of affairs is what he referred to as “Ultra Imperialism.” Kautsky falsely predicted the onset of a new phase of the elimination of contradictions between imperialist and capitalist states. This gave way to reformism, since it remained purely focused on combating “hegemonism” and sees imperialism as a policy, which could be adopted or rescinded at the whim of the ruling class, instead of the latest stage in the development of capitalism. Lenin in contrast, viewed imperialism as the highest and last stage of capitalism – monopoly capitalism that needs the domination of other countries and war. Lenin strongly criticized this theory of Kautsky’s, pointing out his denial of the connection between the rule of monopolies and imperialism, as well as his attempts to portray the rule of finance capital as somehow “lessening” the contradictions inherent in the world economy, when in reality it increases and aggravates them. Lenin summed up thusly:

“The question is: what means other than war could there be under capitalism to overcome the disparity between the development of productive forces and the accumulation of capital on the one side, and the division of colonies and spheres of influence for finance capital on the other?”

(V.I. Lenin, Imperialism, the Highest Stage of Capitalism).

Uneven development among nations means that capitalists internationally frequently have radically different interests and not all of these interests can be met by full integration of their economic activity within the global marketplace. Any alliance, any “unity” within the capitalist camp is subject to how it benefits the profits of the individual capitalists within such an alliance. Unlike workers, who are able to reap benefits from the struggles of workers all over the world, a capitalist isn’t necessarily benefited by the success of other capitalists. As capitalists are forced to compete for what they perceive to be a limited number of material and market resources, the bonds which have formerly bound them begin to deteriorate.

Lin Biaoist formulations of the world proclaim no actual, concrete program for anti-imperialist struggle, or even for support of national liberation movements of oppressed peoples. What they do, quite in the style of the idealists of the past, is to cloak the question of revolution in bombastic-sounding phrases. Lin Biaoism implicitly capitulates to imperialism by including the reactionaries and comprador bourgeoisie in the same ranks as the people and the revolutionaries of the “third world.” This can only lead to obscuring the radical contradictions characteristic of the monopoly stage of capitalism. Interestingly, Lin Biao portrays imperialism as the main enemy of the world’s people, and yet the same set of theories were used by Hua Guofeng and Deng Xiaoping to ally themselves with imperialism. This is not just a lesson for those in the “first,” “second” or “third” worlds, but the entire world. While some of the supporters of the theory may disagree with specific tactics in the examples I have cited, the overall logic is inescapable.

Of course, there are a never-ending stream of national-chauvinist Marxists who stand ready and willing to assure us that this position of Lin’s conforms more closely to reality than, say, those of Trotsky, who in this case acts as a stand-in for anyone opposed to Lin Biao’s theories, or J. Sakai’s, or Sultan-Galiyev’s, or whoever they happen to be cheering on. These chauvinists are usually quick to conjure demons from oblivion at the sign of the slightest opposition to their theories, such as “Trotskyism” or “Eurocentric” Marxism. Sometimes they are even brave enough to challenge traditional Marxism, which they characterize as ‘Eurocentric” or “mechanical.” As we all know, Marxism consists of choosing between envisioning a dramatic repetition of the events of the Chinese Revolution on a global scale with isolated urban areas in a sea of peasant revolution, or being accused of Euro-chauvinism ourselves. The endless need of revisionists to figure out which demonstrably incorrect line is “closer” to reality never ceases to amaze me, and the debate between Trotskyism, a stand-in for supposedly “Eurocentric” traditional Marxism and Lin Biaoism and its proclamation that the the entire so-called “third world” or “global south” is ready and ripe for revolution is no exception to that.

Today there is much talk about the “first,” “second” or “third” world, a world of “colonized” countries versus “colonizer” countries, of the “global south versus the global north,” etc. All of these terms, of course, conceal the real class nature of these countries. But this is not all, oh no dear reader, not quite all indeed! For recently, these ideas have further paved the way for its modern adherents to apply class labels to entire nations, saying that the “first world” represents a global bourgeoisie and making such claims as the first world populations not representing the true proletariat. Some go even further, and take Lin Biaoist views to outright denying the first world proletariat’s revolutionary potential, dismissing it as inherently reactionary as a class. At first glance, nothing would appear stranger than a group of so-called Marxists in the first world decrying the revolutionary potential of its people. But in fact, it’s no secret that this odd trend of Maoism has emerged as one of the most outwardly vocal, if not particularly politically effective, voices on the American left in recent years.

Whether they claim there are no significant exploited groups in the first world, or that internally colonized peoples are the only real proletariat, or some other variation thereof, modern third-worldism attempts to peddle the same Lin Biaoist theories, despite what differences they may have. Some confuse class as income, while others do not. Some claim that class is one’s personal ideology, i.e. reactionary workers are bourgeois or labor aristocrat, while others do not. Some, like author J. Sakai, claim that every person of European descent in the United States is a net exploiter from the American colonies onwards, and that the U.S. has no proletariat of its own but exists parasitically on colonial peoples, oppressed nations and national minorities, whom he labels the “true proletariat.” Therefore, the entire white working class is reactionary rather than revolutionary and this has always been the case, and therefore working class solidarity between whites, blacks, Hispanics, Natives, Asians and other peoples is impossible. He recognizes white privilege in the form of Euro-American workers being a privileged labor aristocracy which possesses a petty-bourgeois reformist ideology rather than a revolutionary proletarian one. Sakai’s solution is to call for a kind of Bundist separatism, with each racial group creating its own independent organization.

Before I continue, it must be made clear that the labor aristocracy, that is, the stratum of highly-paid and privileged workers bribed by the imperialist bourgeoisie by means of superprofits extracted from colonies and neo-colonies, certainly exists. This has been recognized by all the Marxist classics ever since the strata of the labor aristocracy emerged in Britain in the mid-19th century. This tendency was recognized by Marx and Engels, and they traced this opportunism within the working class movement directly back to British imperialism:

“[T]he English proletariat is actually becoming more and more bourgeois, so that the ultimate aim of this most bourgeois of all nations would appear to be the possession, alongside the bourgeoisie, of a bourgeois aristocracy and a bourgeois proletariat. In the case of a nation which exploits the entire world this is, of course, justified to some extent”

(F. Engels, “Engels to Marx in London,” 7 October 1858).

These views remained consistent over the course of several decades, as seen in this letter from Engels to Kautsky dated twenty-four years later:

“You ask me what the English workers think about colonial policy. Well, exactly the same as they think about politics in general: the same as what the bourgeois think. There is no workers’ party here, there are only Conservatives and Liberal-Radicals, and the workers gaily share the feast of England’s monopoly of the world market and the colonies”

(F. Engels, “Engels to Karl Kautsky in Vienna,” 12 September 1882).

V.I. Lenin also identified the source of bribery for the labor aristocracy as the commercial and industrial monopoly of the imperialist countries and their export of capital to the colonial countries:

“Before the war [World War I – E.S.], it was calculated that the three richest countries—Britain, France and Germany—got between eight and ten thousand million francs a year from the export of capital alone, apart from other sources.

It goes without saying that, out of this tidy sum, at least five hundred millions can be spent as a sop to the labour leaders and the labour aristocracy, i.e., on all sorts of bribes. The whole thing boils down to nothing but bribery. It is done in a thousand different ways: by increasing cultural facilities in the largest centres, by creating educational institutions, and by providing co-operative, trade union and parliamentary leaders with thousands of cushy jobs. This is done wherever present-day civilised capitalist relations exist. It is these thousands of millions in super-profits that form the economic basis of opportunism in the working-class movement. In America, Britain and France we see a far greater persistence of the opportunist leaders, of the upper crust of the working class, the labour aristocracy; they offer stronger resistance to the Communist movement. That is why we must be prepared to find it harder for the European and American workers’ parties to get rid of this disease than was the case in our country. We know that enormous successes have been achieved in the treatment of this disease since the Third International was formed, but we have not yet finished the job; the purging of the workers’ parties, the revolutionary parties of the proletariat all over the world, of bourgeois influences, of the opportunists in their ranks, is very far from complete.”

(V.I. Lenin, “The Second Congress of the Communist International”)

“They [Social-Democrats] are just as much traitors to socialism… They represent that top section of workers who have been bribed by the bourgeoisie… for in all the civilised, advanced countries the bourgeoisie rob—either by colonial oppression or by financially extracting ‘gain’ from formally independent weak countries—they rob a population many times larger than that of ‘their own’ country. This is the economic factor that enables the imperialist bourgeoisie to obtain superprofits, part of which is used to bribe the top section of the proletariat and convert it into a reformist, opportunist petty bourgeoisie that fears revolution.”

(V.I. Lenin., “Letter to the Workers of Europe and America,” Pravda; No. 16, January 24, 1919)

Exploitation of the world by imperialist countries and their monopoly position on the global market, as well as their colonial possessions, allowed sections of their proletariat to become bourgeois, and allowed a section of their proletariat to allow themselves to be bribed by the bourgeoisie. Unlike modern third-worldists however, who dismiss the whole of the population of imperialist countries as unexploited and bourgeois, while recognizing the social and economic basis for opportunism and revisionism in the more developed countries, Lenin spoke of the labor aristocracy as a minority of the workers, and that it was the task of the revolutionaries to expose them:

“Neither we nor anyone else can calculate precisely what portion of the proletariat is following and will follow the social-chauvinists and opportunists. This will be revealed only by the struggle, it will be definitely decided only by the socialist revolution. But we know for certain that the ‘defenders of the fatherland’ in the imperialist war represent only a minority. And it is therefore our duty, if we wish to remain socialists to go down lower and deeper, to the real masses; this is the whole meaning and the whole purport of the struggle against opportunism. By exposing the fact that the opportunists and social-chauvinists are in reality betraying and selling the interests of the masses, that they are defending the temporary privileges of a minority of the workers, that they are the vehicles of bourgeois ideas and influences, that they are really allies and agents of the bourgeoisie, we teach the masses to appreciate their true political interests, to fight for socialism and for the revolution…”

(V.I. Lenin, “Imperialism and the Split in Socialism”).

He continued:

“The only Marxist line in the world labour movement is to explain to the masses the inevitability and necessity of breaking with opportunism, to educate them for revolution by waging a relentless struggle against opportunism […]”

(V.I. Lenin, “Imperialism and the Split in Socialism”).

Enver Hoxha analyzed the origins and class nature of the labor aristocracy, and noted its role in the advent of revisionism and reformism in the Communist Parties as well, particularly in Europe:

“The development of the economy in the West after the war [World War II – E.S.] also exerted a great influence on the spread of opportunist and revisionist ideas in the communist parties. True, Western Europe was devastated by the war but its recovery was carried out relatively quickly. The American capital which poured into Europe through the ‘Marshall Plan’ made it possible to reconstruct the factories, plants, transport and agriculture so that their production extended rapidly. This development opened up many jobs and for a long period, not only absorbed all the free labour force but even created a certain shortage of labour.

This situation, which brought the bourgeoisie great superprofits, allowed it to loosen its purse-strings a little and soften the labour conflicts to some degree. In the social field, in such matters as social insurance, health, education, labour legislation etc., it took some measures for which the working class had fought hard. The obvious improvement of the standard of living of the working people in comparison with that of the time of the war and even before the war, the rapid growth of production, which came as a result of the reconstruction of industry and agriculture and the beginning of the technical and scientific revolution, and the full employment of the work force, opened the way to the flowering amongst the unformed opportunist element of views about the development of capitalism without class conflicts, about its ability to avoid crises, the elimination of the phenomenon of unemployment etc. That major teaching of Marxism-Leninism, that the periods of peaceful development of capitalism becomes a source for the spread of opportunism, was confirmed once again. The new stratum of the worker aristocracy, which increased considerably during this period, began to exert an ever more negative influence in the ranks of the parties and their leaderships by introducing reformist and opportunist views and ideas.

Under pressure of these circumstances, the programs of these communist parties were reduced more and more to democratic and reformist minimum programs, while the idea of the revolution and socialism became ever more remote. The major strategy of the revolutionary transformation of society gave way to the minor strategy about current problems of the day which was absolutized and became the general political and ideological line.”

(Enver Hoxha. Eurocommunism is Anti-Communism. Tirana: 8 Nëntori Publishing House. 1980. pp. 82-83.)

So as we can see, the correct Marxist-Leninist analysis of the labor aristocracy was upheld by all the classics. However, none of this says that a proletariat ceases to exist in those countries. In contrast, modern “third-worldism,” sometimes called “Maoism Third-Worldism” and sometimes not, is the belief that first world workers are non-revolutionary and have the status of a global labor aristocracy lacking a proletarian revolutionary consciousness or revolutionary potential at all, since supposedly imperial capital has tamed them with flashy electronics and consumer products, thus bribing them into passivity. Thus, according to this mode of thought, first world leftists must place their hopes for a revolution on the peoples of the third world. This set of ideas was a common theme in the Maoist-inspired student movements of the 1960s and 1970s. Others since then, particularly since the 1980s, have taken this further and claimed that first world workers actually aren’t exploited at all, and are paid more than the value of their labor, thus making them part of the bourgeoisie complicit in exploiting the third world. In this version of the formulation, the first world is outright reactionary altogether. The only debate between the two types is whether there are any significantly exploited groups in the first world at all, such as prisoners, lumpenproletarians, blacks, Chicanos, etc., or if these people also share in the exploitation of the third world along with their white counterparts.

One of the most common characteristics of modern third-worldism is the tendency to blame the “first world” masses for not rising against capital, and to uphold this as evidence that they posses no revolutionary potential at all. This is especially curious as third-worldists exist almost exclusively within the “first world” themselves, and then mostly in the United States. To explain how they arrived at their revolutionary consciousness, such as it is, they are obliged to make metaphors to individuals like John Brown, and claim that the real reason socialism is not victorious in “first world” countries is that the people there recognize their material interests in following the imperialist bourgeoisie. Some even negate class as an economic classification by saying having a reactionary ideology also makes them labor aristocrats. Of course, if one blames “first world” workers for following and identifying with the dominant ideology of the bourgeoisie, the logical conclusion is to use that same standard for the large amounts of reactionary ideology in the “third world,” too, which tellingly, none of them dare to do. As Marx famously wrote:

“The ideas of the ruling class are in every epoch the ruling ideas, i.e. the class which is the ruling material force of society, is at the same time its ruling intellectual force. The class which has the means of material production at its disposal, has control at the same time over the means of mental production, so that thereby, generally speaking, the ideas of those who lack the means of mental production are subject to it”

(Karl Marx, “The German Ideology”).

What third-worldists fail to realize is that part and parcel of the material conditions in the U.S. is being subjected to the most powerful, most all pervasive, most advanced apparatus of ideological hegemony the world has ever known. In essence they are asking why socialist ideas are not more widely accepted in the country with the most powerful, advanced, developed and pervasive capitalist media. Most chauvinist of all their justification in relying on the “third world” workers to make the revolution there is that in contrast to the workers in developed countries, who apparently enjoy too many benefits in their minds, the “third world” workers are truly the only one who “have nothing to lose but their chains.” Words cannot describe how incredibly ignorant, and more than that patronizing it is for someone living in the “first world” to point their finger at the entire working class of various nations and declare that they have “nothing to lose” and thus should rise up and potentially face maiming, torture and death so that the third-worldist can sit in his comfortable air-conditioned domicile and post photos expressing “solidarity” on social media. It is strictly up to the parties, organizations and workers themselves in those countries to determine if the time and conditions are ripe for a revolution. Until then, it is arrogant, and dare I say racist, to declare that the entire working population of vast nations have “nothing to lose.” If these renegades actually visited a developing country, they might find that everywhere they went they could find people who would strongly disagree they have “nothing to lose.”

The absolutizing of the phrase which famously ends the Manifesto, namely that the workers “have nothing to lose but their chains,” is just one more example of a recent trend of making political stances out of simple slogans, and increased sloganeering to disguise political dishonesty or even reaction. It’s obvious to any ready that the original phrase was meant by Marx and Engels as a rallying call, instead of an excuse to only classify those people who “have nothing to lose” as revolutionaries or workers. Everyone on the planet, even those living in the most miserable conditions, have “something to lose,” if only their lives and their families. 

It is accurate to say that the roots of modern third-worldism are based in Maoism itself, in the peasant-based theories of Mao and especially Lin Biao. The three worlds theory, or the “theory of the three-part world” developed by Mao Tse-tung in 1974 was based entirely on China’s strategic interests. It was part of Chinese foreign policy in the 1970s as I have mentioned, and part of it was claiming U.S. imperialism was weak, citing for example its defeat in Vietnam, whereas Soviet social-imperialism was a rising and more dangerous imperialist power and a growing threat to humanity, akin to Nazi Germany. This position was supported dogmatically under Hua Guofeng but quietly dropped in the 1980s after the rise of Deng Xiaoping to the leadership of China when Sino-Soviet ties improved. But, as reactionary and mistaken as Mao’s three worlds theory might have been, and opportunist and anti-communist as was the Chinese foreign policy during that era, one cannot say Mao Tse-tung was a third-worldist in the modern sense by any stretch of the imagination. As perverse as the “theory of the three worlds” might be, present-day third-worldists are a perversion even of that shaky theoretical basis.

Modern “third-worldism” – which is an ideological variety of Lin Biaoism – existing outside of the internet has always been negligible. While some early third-worldist movements did exist as activists, none of them have been particularly large and were soon reduced almost exclusively to an internet presence. This has been the case since then. It can therefore be (rightly) inferred that third-worldists almost never have first-hand experience of life and material conditions or conditions of struggle in “third world” countries. It’s always struck me as curious that third-worldism has little to no following in the “third world” itself.

Indeed, the most commonly heard statement comrades from the “third world” made to American Marxist-Leninists is that our struggle here, in the very heart of imperialism, will be decisive. Mao Tse-tung himself made many such statements, such as this one from 1970:

“While massacring the people in other countries, U.S. imperialism is slaughtering the white and black people in its own country. Nixon’s fascist atrocities have kindled the raging flames of the revolutionary mass movement in the United States. The Chinese people firmly support the revolutionary struggle of the American people. I am convinced that the American people who are fighting valiantly will ultimately win victory and that the fascist rule in the United States will inevitably be defeated”

(Mao Tse-tung, “People of the World, Unit and Defeat the U.S. Aggressors and All Their Running Dogs”).

As far back as 1949, Mao spoke of the class struggles within the United States between the people and the ruling class:

“To start a war, the U.S. reactionaries must first attack the American people. They are already attacking the American people – oppressing the workers and democratic circles in the United States politically and economically and preparing to impose fascism there. The people of the United States should stand up and resist the attacks of the U.S. reactionaries. I believe they will”

(Mao Tse-tung, “Talk with American Correspondent Anna Louise Strong”).

As well, in a telegram to William Z. Foster in 1945, Mao wrote regarding the defeat of of Earl Browder’s revisionist and liquidationist line:

“Beyond all doubt the victory of the U.S. working class and its vanguard, the Communist Party of the United States, over Browder’s revisionist-capitulationist line will contribute signally to the great cause in which the Chinese and American peoples are engaged the cause of carrying on the war against Japan and of building a peaceful and democratic world after the war”

(Mao Tse-tung, “Telegram to Comrade William Z. Foster”).

In 1963, Mao also issued a statement supporting working class solidarity in the United States against systematic racism:

“I call upon the workers, peasants, revolutionary intellectuals, enlightened elements of the bourgeoisie, and other enlightened personages of all colours in the world, white, black, yellow, brown, etc., to unite to oppose the racial discrimination practiced by U.S. imperialism and to support the American Negroes in their struggle against racial discrimination. In the final analysis, a national struggle is a question of class struggle. In the United States, it is only the reactionary ruling clique among the whites which is oppressing the Negro people. They can in no way represent the workers, farmers, revolutionary intellectuals, and other enlightened persons who comprise the overwhelming majority of the white people. At present, it is the handful of imperialists, headed by the United States, and their supporters, the reactionaries in different countries, who are carrying out oppression, aggression and intimidation against the overwhelming majority of the nations and peoples of the world. They are the minority, and we are the majority. At most they make up less than ten percent of the 3,000 million people of the world”

(Mao Tse-tung, “Statement Supporting the Afro-Americans in their Just Struggle Against Racial Discrimination by U.S. Imperialism”).

And again in 1968:

“Racial discrimination in the United States is a product of the colonialist and imperialist system. The contradiction between the Black masses in the United States and the U.S. ruling circles is a class contradiction. Only by overthrowing the reactionary rule of the U.S. monopoly capitalist class and destroying the colonialist and imperialist system can the Black people in the United States win complete emancipation. The Black masses and the masses of white working people in the United States have common interests and common objectives to struggle for. Therefore, the Afro-American struggle is winning sympathy and support from increasing numbers of white working people and progressives in the United States. The struggle of the Black people in the United States is bound to merge with the American workers’ movement, and this will eventually end the criminal rule of the U.S. monopoly capitalist class”

(Mao Tse-tung, “A New Storm Against Imperialism”).

As I’ve already shown, Lin Biao’s line, which is much more closely followed by modern third-worldists, saw the primary contradiction in the world as between the global city and global countryside, or the exploited poor countries versus the wealthy imperialist countries, imagining people’s war on a global scale. Some even go as far to say that the waging of people’s war is the true test if a movement is truly communist or not. Third-worldists today uphold the theories of Lin Biao and largely reject the Chinese policies during this period, accusing the Chinese leadership, and even Mao Tse-tung himself, of “first-worldism” for supporting the class struggles of the workers in the “first world.” Of course, revolutionaries in the “third world” saying the working class in the “first world” also wage a decisive struggle are not limited to Mao himself.

Cuban poet and revolutionary José Martí once spoke a phrase which was popularized by Ernesto “Che” Guevara: “I envy you. You North Americans are very lucky. You are fighting the most important fight of all – you live in the heart of the beast.”

During the anti-colonial wars in Vietnam against the French, Ho Chi Minh spoke of the French working class as an ally against the French imperialists:

“If the French imperialists think that they can suppress the Vietnamese revolution by means of terror, they are grossly mistaken. For one thing, the Vietnamese revolution is not isolated but enjoys the assistance of the world proletariat in general and that of the French working class in particular.”

(Ho Chi Minh, “Appeal made on the Occasion of the Founding of the Indochinese Communist Party”).

Ho Chi Minh further said he considered the French and Vietnamese proletariat as two forces which ought to unite together in a common struggle against the French ruling class:

“The mutual ignorance of the two proletariats [French and Vietnamese] gives rise to prejudices. The French workers look upon the native as an inferior and negligible human being, incapable of understanding and still less of taking action. The natives regard all the French as wicked exploiters. Imperialism and capitalism do not fail to take advantage of this mutual suspicion and this artificial racial hierarchy to frustrate propaganda and divide forces which ought to unite”

(Ho Chi Minh, “Some Considerations of the Colonial Question”).

He even spoke of the line, notably from the Second International, that people in developed countries and people in colonial and semi-colonial countries should not unite, supporting the line of Lenin and Stalin in calling it reactionary:

“I will explain myself more clearly. In his speech on Lenin and the national question Comrade Stalin said that the reformists and leaders of the Second International dared not align the white people of the colonies with their coloured counterparts. Lenin also refused to recognize this division and pushed aside the obstacle separating the civilized slaves of imperialism from the uncivilized slaves.

According to Lenin, the victory of the revolution in Western Europe depended on its close contact with the liberation movement against imperialism in enslaved colonies and with the national question, both of which form a part of the common problem of the proletarian revolution and dictatorship.

Later, Comrade Stalin spoke of the viewpoint which held that the European proletarians can achieve success without a direct alliance with the liberation movement in the colonies. And he considered this a counter-revolutionary viewpoint”

(Ho Chi Minh, “Report on the National and Colonial Questions at the Fifth Congress of the Communist International”).

In 1926, J.V. Stalin wrote the following in regards to the workers of Western Europe in supporting the Bolshevik revolution:

“Without the support of the workers of the West we could scarcely have held out against the enemies surrounding us. If this support should later develop into a victorious revolution in the West, well and good. Then the victory of socialism in our country will be final”

(J.V. Stalin, “The Possibility of Building Socialism in our Country”).

Modern third-worldists, whether they base themselves on Lin Biao, Franz Fanon, Sultan-Galiyev, J. Sakai or any number of other theoreticians, claim there is a divergence between “European” socialism and oppressed nations, the countries of the “third world.” These ideas are responsible for the strengthening of the notions of “African socialism,” “Arab socialism” and various other incarnations which claim that Marxism and Leninism are only for Europeans, only for white people. It must be asked: what then, separates the Lin Biaoists from bourgeois nationalists? Indeed, what separates them at all from anti-communists? As we can see, to disparage “first world” workers as an overall counterrevolutionary class and proclaim that “third world” workers are the only ones with truly nothing to lose, and to reject solidarity between them is anti-Marxist, liquidates proletarian internationalism and ignores any idea of revolutionary connectivity between the “third” and “first” worlds. The American left has had to put up with constant subversion of revisionist, counterrevolutionary and bourgeois politics which derail the worker’s movement, and that includes those embracing the Lin Biaoist or third-worldist line.

Lin Biao, like Mao Tse-tung during his “three worlds” period, like Karl Kautsky during his opportunist period, and like the sorry assortment of modern Lin Biaoists, rely on empty and bombastic phrase-mongering, petty-bourgeois pipe dreams represented as the highest r-r-revolutionary Utopianism coupled with a lack of analysis of the real functioning and foundations of the modern economic system.

For some of these pseudo-Marxists, they do not qualify either as Lin Biaoists or third-worldists because of some various trivial minutiae, such as not outwardly calling themselves such labels, such complexity does their ideology have, you see, that it defies categorization except that which is convenient for its defenders. I do not seek to say that all the differing theories I use as examples of this tendency are precisely the same; what I’d like to point out is the common failing between Lin Biaoism, the theories of Sultan-Galiyev, Kautsky’s “ultra-imperialism,” Mao’s “theory of the three worlds,” and modern third-worldists.

What these theories demonstrate is that there are problems when one is too quick to apply phenomenon which can be empirically understood at the national level to phenomena occurring internationally. Many theorists have made such non-class-based arguments in which the old notions of class struggle and imperialism are replaced by more “global” perspectives which perceive the main contradictions within capitalism taking place globally. Inevitably, these ideas later lead those theorists and their adherents to anti-Marxist, anti-scientific conclusions which would render their theories less useful for a concrete understanding of capitalism on the world stage. There are problems which arise in trying to mechanically and haphazardly apply these contradictions in a global way.

The triumph and realization of the proletarian revolution is the main aim of our historical epoch. It must and will necessarily permeate all countries without exception, among them the ones in both the “third” and “first” worlds, regardless of their level of development, and regardless at which stages the revolution will be accomplished. Disregarding this universal law and theorizing about whole nations being labor aristocrats, forgetting the fight against the comprador bourgeoisie, evaluating “third world” countries in a chauvinist way and opposing proletarian internationalism can only mean being neither for national liberation or for proletarian revolution. The proletarian revolution must and will triumph in Africa, Asia, the Americas and in Europe, too. Whoever forgets or distorts this perspective and doesn’t actively fight towards this aim, but instead preaches that the revolution has shifted and that the proletariat of certain countries has to either acknowledge itself as inherently reactionary, or ally itself with its “third world” bourgeoisie, is someone who takes a revisionist and reactionary stance.

While Lin Biao deserves credit for his distinguished career as a military officer in the Chinese Civil War, his theories are not a suitable replacement for the Leninist understanding of imperialism and revolution. Given the profound theoretical problems in Lin Biao’s conceptions of a “global countryside” and “global city,” and the evolution of his supporter’s chauvinist theories, I argue based on the evidence I have presented that the Leninist model is still the best framework for understanding the machinations of the capitalist and imperialist system internationally, even in this moment where ephemeral fashionable words like “third world” and “global south” are on everyone’s lips.

In conclusion, perhaps Lenin said it best:

“The flight of some people from the underground could have been the result of their fatigue and dispiritedness. Such individuals may only be pitied; they should be helped because their dispiritedness will pass and there will again appear an urge to get away from philistinism, away from the liberals and the liberal-labour policy, to the working-class underground. But when the fatigued and dispirited use journalism as their platform and announce that their flight is not a manifestation of fatigue, or weakness, or intellectual woolliness, but that it is to their credit, and then put the blame on the ‘ineffective,’ ‘worthless,’ ‘moribund,’ etc., underground, these runaways then become disgusting renegades, apostates. These runaways then become the worst of advisers for the working-class movement and therefore its dangerous enemies”

(V.I. Lenin, “How Vera Zasulich Demolishes Liquidationism”).

ICMLPO (Unity & Struggle): Solidarity and Support to the People of Ecuador

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The International Conference of Marxist-Leninist Party Parties Organizations and (ICMLPO) express its deep condolences to the families of the victims and its full solidarity with the people of Ecuador hit by a strong earthquake.

As usual, in the capitalist regime the more affected by this kind of natural phenomena are the poorest, the deprived workers. This is the logic of a system whose purpose is the profit, instead of to satisfy the material and cultural needs of the society.

The ICMLPO calls to its members, to the working class and the people of Latin America and the whole world to express in a militant way the solidarity with this Ecuadorian people that since decades struggle against the exploitation and the imperialistic dominion, for the national sovereignty, the social progress and for a true revolutionary change.

We also call to the health and humanitarian organizations to intensify their efforts and to activate the urgent and necessary help to the affected population.

Let us distrust the bullying and authoritarian government of Correa to not taking advantage of the situation in order to limit the democratic and popular liberties and criminalize the social and political protest. The crisis and the devastation must be paid by the capitalists and the rich ones!

The oppression and the tragedies suffered by the peoples for social and environmental causes should push the workers and the peoples of all countries to say NO to the imperialist intervention, interferences and wars, NO to the war expenditure and the racist walls, but YES to a politics of mutual help, peace and international workers’ and people solidarity, YES to a new socialist world.

April 18, 2016

Coordinating Committee of the International Conference of Marxist-Leninist Parties and Organizations (ICMLPO)

The Greek Debt Crisis: A Misnomer for the European Imperialist Crisis

Anti-austerity demonstration before the Greek Parliament, July 3, 2015

Anti-austerity demonstration before the Greek Parliament, July 3, 2015

August 2015
Hari Kumar

1. An Introduction to Greece
2. The Truman Doctrine – Greece becomes dependent upon the USA after the Second World War
3. The Greek Junta – Greece by now fully a client state of the USA
4. Capitalist Class of Greece Moves to “Democracy” and Europe
5. The USA Makes Its Move to Become the World Imperialist Leader – The Character of the European Union – from pro-USA states to anti-USA coalition
6. The Greek Economic Crisis 2009-2015
7. The Marxist View of “National Debt” under capitalism
8. The Debt Crisis leads to increasing struggle of the growing Greek working class and gives rise to The United Front of Syriza – the political parties of the left
9. What was the elected programme of Syriza?
10. Elections of 2015 and Negotiations with the Troika
11. Conclusion
APPENDIX: Select Chronology 1975 to 2015

Synopsis:
After the Second World War, Greece was a client state in the Mediterranean of the USA. The revisionist collapse of the Yugoslav communists in the neighbouring state of Yugoslavia was key in this development. Tito’s degeneration into revisionism deprived the minority of the Marxist-Leninist forces in the Communist Party of Greece (KKE) of crucial support. We describe this in a subsequent more detailed article.

This article is restricted to the post Second World War development of Greece, up to the present-day debt crisis. It argues that the entire post-war history of Greece was effectively that of a neo-colonial state serving initially the interests of USA imperialism and British imperialism. The Greek people did not have a non-revisionist proletarian leadership that could develop an independent democratic path. The Junta and the imperialist machinations in Cyprus of the island further retarded the people of Greece. Both Greece and Cyprus – endured military oligarchic dictatorships sponsored by the USA.

The later history of Greece became inextricably entwined with the slow but sure evolution of the European imperialist bloc. This bloc took multiple only slowly coalesced, and eventually it later became the European Community. However during its coming into being, it took several class forms. The post-Marshall Plan in Europe had ushered in a dominant USA which fostered the first steps towards a federal Europe. In its hopes to control the European content as a market, the USA was at first successful. During this period the elements of a united Europe adopted a pro-USA comprador position.

This is also characterised the initial European Economic Union (EEC). But the Euronationlists finally, and haltingly, moved to release Europe to some extent, from the USA embrace. Following the fall of the former Comecon countries, Germany was able to move into a new market itself. This began a new phase. Now the rising German imperialists used their industrial superiority and new market share to re-vitalise their hegemonic ambitions.

Such events were milestones on the road to today’s debacle in Greece. They were the pre-history of the chronic indebtedness of the Greek state.

After the Junta “democratised” itself, Greece swopped the USA master for that of the EU. The EU progressed to be firmly dominated by the unified single unitary state of Germany, where German capitalists became the dominant faction. German capital exported both capital and industrial exports, including… to Greece. Over-riding the total market share of Greece accruing to Germany, are the huge debts of Italy and France to Germany – both at risk of potential default. This underlies the harshness of the German ruling class towards the Greek capitalist representatives in Greece today. Finally, current differences between the International Monetary Fund leader Christine Lagard (representing the USA interests) and the German leaders Angela Merkel and Schauble, show the continuing inter-imperial contradictions. This has engulfed Greece today.

1. An Introduction to Greece

Greece is set in the Eastern corner of the Mediterranean Sea and surrounded by the Aegean Sea:

“Greece has more than 2,000 islands, of which about 170 are inhabited; some of the easternmost Aegean islands lie just a few miles off the Turkish coast. The country’s capital is Athens, which expanded rapidly in the second half of the 20th century. Attikí (ancient Greek: Attica), the area around the capital, is now home to about one-third of the country’s entire population.

(http://www.britannica.com/place/Greece)”

In the modern era industrialisation has been slow, leaving Greece dependent upon agriculture, fishing and tourism. The only segment of industry that could be considered substantial is shipbuilding and related industries:

“The manufacturing sector in Greece is weak. …. In the 1960s and ’70s Greek shipowners took advantage of an investment regime that benefited from foreign capital by investing in such sectors as oil refining and shipbuilding. Shipping continues to be a key industrial sector—the merchant fleet being one of the largest in the world—(but) are extremely vulnerable to downturns in international economic activity, as they are principally engaged in carrying cargoes between developing countries.”

(http://www.britannica.com/place/Greece/Demographic-trends#toc26455)

As far as agriculture is concerned, produce is hampered by small peasant holdings, resulting from an early restriction on large land holdings:

“large landowners appeared relatively late (with the annexation of Thessaly in 1881) and only lasted till the agrarian reforms of 1917, which abolished big landed property in Greece irreversibly.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

In addition dry conditions and poor soil make agriculture at times tenuous.
In recent years the European Community has helped with various grant subsidies. Overfishing has hampered that other resource:

“Greece’s agricultural potential is hampered by poor soil, inadequate levels of “precipitation, a landholding system that has served to increase the number of unproductive smallholdings, and population migration from the countryside to cities and towns. Less than one-third of the land area is cultivable, with the remainder consisting of pasture, scrub, and forest. Only in the plains of Thessalía, Makedonía, and Thráki is cultivation possible on a reasonably large scale. There corn (maize), wheat, barley, sugar beets, peaches, tomatoes, cotton (of which Greece is the only EU producer), and tobacco are grown. Other crops grown in considerable quantities are olives (for olive oil), grapes, melons, potatoes, and oranges, all of which are exported to other EU countries. … Although inefficient, Greek agriculture has benefited substantially from EU subsidies… In general, however, the importance of the agricultural sector to the economy is diminishing…
Greece’s extensive coastline and numerous islands have always supported intensive fishing activity. However, overfishing and the failure to conserve fish stocks properly, a problem throughout the Mediterranean, have reduced the contribution of fishing to the economy.
Greece has few natural resources. Its only substantial mineral deposits are of nonferrous metals, notably bauxite.”

(http://www.britannica.com/place/Greece/Demographic-trends#toc26455) (http://www.britannica.com/place/Greece/Agriculture-forestry-and-fishing)

The early development of modern-day Greek capitalism was that of a merchant capital that weaved itself into the matrix of the Ottoman Empire. Both these traders and arising shipping magnates, were based outside of Greece. Being non-resident they could not transfer easily all their capital resources for later industrialisation needed to keep pace with the rest of the European economies:

“The development of the Greek bourgeoisie must be traced back to the sixteenth century when Greece was under Ottoman rule…. Greek merchants… accumulated vast fortunes and control (over) Balkan trade and most of the Ottoman empire’s commercial transactions with the industrialising West. …..
With the decline of the Ottoman empire in the eighteenth and nineteenth centuries, the Greek bourgeoisie….contributed to the development of Balkan nationalism. It thus played a crucial role in the Greek war of independence against the Turks (1821). For while the Greek peasantry constituted the main revolutionary force in the war, the bourgeoisie and the intellectuals managed to direct this force towards nationalist goals. ….
The first Greek constitutions, for instance, were inspired by the French experience; and although Capo d’Istria and later King Otto tried to implement an absolutist model of government, their efforts were ultimately frustrated.
Of course, it is true that in the nineteenth century the autochthonous merchant class was rather weak. But its counterpart living abroad, the Greek diaspora merchants and ship-owners, with their formidable financial power, greatly influenced the shaping of most institutions in nineteenth-century Greece itself… .. these (Greek) merchant communities.. were flourishing both in colonial centres (Alexandria, Cairo, Khartoum, etc.), in the major capitals of ninteenth- century Europe and in Constantinople and Asia Minor.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

This large overseas Greek bourgeoisie was already prone to comprador positions. Although it helped transfer some capital to Greece itself, this was largely in the mercantile and finance sectors:

“Although relatively small by international standards, the Greek diaspora bourgeoisie, by exploiting inter-imperialist rivalries and playing the role of intermediary between metropolitan and colonial centres, managed to master formidable financial resources, some of which were channelled into mainland Greece. However, given its cosmopolitan and mercantile character, as well as the weakness of the indigenous bourgeoisie, these resources contributed to the development of a top-heavy state and a parasitic tertiary sector, geared to support a mercantile and finance capital, rather than to the development of industry and agriculture.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

By the end of the Second World War, the population of Greece can be characterised in the following break-down:

  • A very small working class, of whom the most militant were in the tobacco industry; also some in shipping (often overseas for long periods) and fishing;
  • A substantial number of small to medium petit-bourgeoisie in the urban areas (artisans, small businesses) and an even larger number of small peasants in the rural areas
  • A small but dominant comprador bourgeoisie with significant financial overseas capital – based in the shipping industry and in bank capital – with many connections to foreign traders
  • A much smaller but ambitious section of industrial capital anxious to develop their ‘home’ base of Greek production.

The first two sections of society in particular, had suffered enormous losses and hardships under the Italian-German fascist occupation; and then in the ravages of the Civil War. A good summary of the position of the Greek people following the Second World War can be taken from Enver Hoxha:

“When our people are rebuilding their country which was devastated during the war, when our country is working with all its might to strengthen the people’s democracy and advance on its peaceful and progressive course, Greek monarcho-fascism is employing a thousand and one of the basest methods to inflict harm on our people. You know what a terrible tragedy is occurring in Greece. The unfortunate but heroic Greek people are fighting against monarcho- fascists and the foreign intervention. The progressive and democratic world is profoundly indignant when it sees the great tragedy of that people who deserve to live free and sovereign, but who, unfortunately, are being mercilessly oppressed and killed by collaborators of Italo-German fascism who are now under the direct orders of Anglo-American reaction.”

(Hoxha, Enver; “We Sympathize With the Efforts of the Greek People for Freedom and Democracy.” Speech 3 October 1947; In: “Two Friendly Peoples
Excerpts from the political diary and other documents on Albanian—Greek relations
1941 — 1984”. Marx, Engels, Lenin, Stalin Institute Toronto, 1985; pp. 47-48. http://www.enverhoxha.ru/Archive_of_books/English/enver_hoxha_two_friendly_peoples_eng.pdf

2. The Truman Doctrine – Greece becomes dependent upon the USA after the Second World War

The USA implemented an overall strategy known as ‘The Truman Doctrine’ – to counter the ideological threat of the USSR after the victories led by the Marxist-Leninists had inspired the world proletariat. In the Aegean the Truman Doctrine aimed to:

“Prevent Greece and Turkey from passing under Soviet Control.”

(Woodhouse C.M. “Modern Greece, A Short History”; London 3rd Edition
1984; p. 258).

Both the USA Marshall Plan and the creation of NATO, were tactical instruments of the Truman Doctrine. They were used in Greece to build and develop a modern capitalist state structure. But before they were deployed, first the potential proletarian victory of the Greek Civil War had to be stopped.

While the British General Scopus and his forces had defeated the combined forces of the Greek Communist Party (KKE) and their military wing (ELAS), significant distrust remained in the population against British imperialism. So, after the battle of Athens (Dec 3rd 1949) was won by the British, a democratic façade was placed onto the imperialist proceedings. By this stage all leftist opposition had been essentially neutralized and no longer posed any threat to the Greek capitalist class.

When the British imperial chief Winston Churchill understood the degree of Greek popular distrust – he reversed his prior opposition to a plebiscite. The plebiscite following the defeat of left forces enabled the return. The ensuing Plebiscite supported the return of King George II to Greece. (Woodhouse C.M. “Modern Greece” Ibid; p. 254).

The Americans also dropped their previous support of the King, and become “ostentatiously neutral” (Woodhouse C.M Ibid; p. 254) – they tacitly supported the British crushing of the communist forces. Archibishop Damaskinos was appointed a Regent in the King’s stead and General Plasitiras (head of EDS) was appointed Prime Minister and head of government in lieu of George Papandreuou. Papandreuou had previously “approved” the British suppression of the mutiny of 1944 (Woodhouse C.M Ibid; p. 252).

Both the American covert support, and the British repudiation of the King’s intent – enabled the predominantly capitulationist ELAS some pretext to accede to British overlordship. Accordingly ELAS now agreed to the infamous Varizka Agreement of February 1945. Only Aris Veloukhiotis and the Political Committee of National Liberation (PEEA) had resisted Varizka – and these forces were simply hunted down and eliminated.

A succession of shaky governments was capped by the first post-war General Election of March 1946. The Communist Party of Greece (KKE) abstained and the Populist party of Constantine Taldaris, formed a government. This election:

“Marked a watershed in Greece’s foreign relations. For the first time the Government of the USA was directly involved in Greek affairs alongside Britain, though occupation in the Allied Mission for observing the Greek elections. It was a first step towards the Truman Doctrine”. (Woodhouse C.M Ibid; p. 257).

The defeat of left and communist forces at Athens had decimated left resistance.
Behind both the King and the Parliament lay the Army, and the most right-wing section of the army – the group known as IDEA (Sacred Bond of Greek Officers):

“After 1949, the ruling class was no longer threatened. … their enemies had been effectively destroyed for a generation.…..
After its victory, the Right imposed a quasi-parliamentary régime on the country: a régime with ‘open’ franchise, but systematic class exclusions. The Communist Party was outlawed and an intricate set of legal and illegal mechanisms of repression institutionalized to exclude left-wing forces from political activity. The job of guaranteeing this régime fell to the agency which created it: the army. The state was nominally headed by the monarchy and political power was supposedly vested in parliament. In reality, however, the army, and more specifically a powerful group of anti-communist officers within it, played the key role in maintaining the whole structurally repressive apparatus… in particular IDEA (Sacred Bond of Greek Officers), which was to play a key role in post-war politics.”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

The Tsildardis government gave way to the more right wing Demetrios Maiximos with General Zervas (Formerly of EEDS) as Minister of Public Order. Brutal repressions of left forces continued despite both international protests and the presence of a United Nations observership. We will examine the Civil war and the Varzika Agreement in detail in a subsequent article.

By October 1948, martial law was imposed. Under this direct attack by the right-wing forces, and the simultaneous Yugoslav revisionist turn and exposure by the Marxist-Leninist Cominform of 1948:

“The rebel leaders admitted defeat by proclaiming a ‘temporary cessation of hostilities’… a caretaker government.. lifting of martial law, .. withdrawal of the British service missions and the renewal of friendly relations with Yugoslavia.”

(Woodhouse C.M Ibid p. 260)

The Greek government joined NATO in 1951, as well as the Council of Europe; and the Security Council of the UN.

Although throughout this period numerous governments based on varying participation of right-wing forces were only able to hold power for brief periods. The National Progressive Union of the Center (EPEK) – led by General Plastiras and Emmanuel Tsouderous held power until displaced by the virulently anti-communist General Papagos leading the Greek Rally:

“The days of Plastiras’ government were clearly numbered when not only the Greek public but also the US authorities became impatient … Under pressure from the US Embassy the government resigned in 1952… (leading) to electoral overwhelming victory for the Greek Rally.”

(Woodhouse C.M Ibid pp.261-263).

Army vicious actions purged all state structures – which was key to the state through the immediate post-War period:

“Military reaction established firm control over the whole of Greek territory and consolidated a system of ‘repressive parliamentarism’ or ‘guided democracy’. This was controlled by a triarchy of throne, army and bourgeois parliament. Within this power bloc it was the army, the victor of the civil war, which played the dominant role.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976)

Industrial Policy of the Greek Capitalists in this Period

For the next 11 years, both the Army (Marshall Papagos) representatives, or parliamentary figures (George Papandreou before the coup and later Constantine Karamanlis) wanted to consolidate the neo-colonial status to the USA. This started with an economy based on agriculture, tourism and a small manufacturing base.

“the country was far from self-sufficient. .. the chief market for tobacco was revived (West Germany).. expenditure of tourists which came to take second place only to agricultural products as a source of foreign exchange. The development of manufacturing industry and mining with indigenous capital, in place of foreign concessions, (was) a healthy trend. But the lack of home produced source of energy was a severe handicap. It remained true that Greece was still dependent upon foreign aid and there was no end to this condition in sight.”

(Woodhouse C.M Ibid p. 267)

Five special features of the Greek state’s path to modernisation, can be seen:

1. The political and organisational strength of the working class and peasantry was weak, having been decimated during the second world war and after by the brutality of the state. The KKE was almost devoid of leadership, with key leaders in exile.
2. The small native capitalist class was out-numbered by the many Greek capitalist who were based overseas (shipping) – and did not have the necessary local capital to invest. Hence the small resident Greek capitalists used the State machinery to develop. This state machinery swelled the size of the bureaucracy who became a large state dependent stratum. They aspired to ‘middle-class’ status but were objectively privileged sections of a growing working class.
3. The state still needed the heavy investment of the overseas imperialists. They first aligned themselves to the USA, and then by the 1970s to Europe.
4. These strategies effectively left Greece a dependent state with the beginnings of large overseas debt.
5. An immiseration – poverty and desperation – of the working peoples, led to increasing emigrations to both the USA, Canada and Europe

After the devastation of the Second World War there had been an impressive return to Greek per-war levels of production:

“The Second World War and the civil war had devastating effects on the Greek economy. For instance, at the end of the Second World War, 9,000 villages and 23 per cent of all buildings had been destroyed. It was partially a sign of the vitality of Greek capitalism that by the middle fifties, pre-war levels of output had been reached again and the economy was growing at a fast rate (the average rate of growth in the fifties was 6 per cent).”

(Mouzelis, Nicols. ‘Capitalism and Dictatorship in Post-war Greece”; New Left Review; I/96, March-April 1976).

However, despite this growth, manufacturing industry remained undeveloped. Nor did the rise of the shipping industry enable Greek capitalists to retain revenues within Greece to more easily enable a home manufacturing base to be built up:

“the Greek economy of the fifties did not manage to overcome a major feature of its underdevelopment: its weak manufacturing sector. Greek capital, whether in its mercantile, industrial or finance form, was unable to orient itself towards the manufacturing sector—especially in those key branches (chemicals, metallurgy) which, through their multiplying effects and their great transformative powers, can contribute most to a rapid growth of the industrial sector”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“shipping… assumed colossal proportions in the post-war period. …..Greek seamen helped the economy by reducing unemployment and by providing valuable foreign currency through their remittances home. On the other hand, since shipping capital lies outside the effective control of the Greek state (it can always move elsewhere if the state bothers it with heavy taxes or other restrictions), it becomes increasingly an avenue of escape for Greek merchant capital. In this way, if migration robs Greece of its most valuable human resources, shipping plays a similar role with respect to the country’s financial resources..”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“Greece’s age-old specialization within the inter- national economy had gradually given rise to a spectacular concentration of capital among a handful of shipping magnates, mainly based in London or New York, whose aggregate holdings are widely reckoned to exceed the GNP of Greece.”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

In conclusion, Greece did not break out of the strait-jacket of a dependent economy. Despite large state structure support, Greek capitalists did not establish an effective manufacturing base:

“from a ‘under-developed’ economy: i.e. a fast-growing, highly parasitic tertiary sector, a weak and more or less stagnant manufacturing sector with a low labour absorption capacity, and a large but inefficient agricultural sector……Whereas in 1938 manufacturing output amounted to 85·6 per cent of all industrial output, it declined to 79·7 per cent in 1948–9 and to 73 per cent during the 1959–60 period.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

“Thus in the late fifties more than half the labour force was still employed in agriculture, whereas the contribution of the industrial sector to the GNP was only around 25 per cent.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Correspondingly foreign investors ensured that favourable legislation was passed in 1953, and by the 1960s a large scale influx of foreign capital flowed in. This was concentrated in the heaviest key sectors, and by the mid 60’s the industrial development had qualitatively changed with heavy industry capital making goods predominating:

TABLE 1 Flow of Foreign Capital into Greece (Dollars)

1960 11,683,700
1961 13,509,809
1962 16,764,758
1963 50,026,290
1964 59,716,887
1965 111,596,368
1966 157,606,242
1967 32,265,000
1969 64,000,000
1970 70,000,000

By the end of 1973, foreign capital invested in Greece had risen to a total of approximately $725 million…. not very impressive if one takes into account that in a single year (1969) $2,504 million went to the gross formation of fixed capital in the Greek economy.

Nevertheless, as foreign capital was mainly directed to-wards the key manufacturing sectors, its impact on the economy was much greater than its relatively small size would suggest. In fact, especially during and after the years 1962–3, when the metallurgical, chemical and metal construction industries experienced a great boost due to foreign investments, one can speak of a qualitative break in the growth of Greek industry. Not only did the industrial sector start expanding at a much faster rate, but there was an important shift in investment from light consumer goods to capital goods and durables.

Whereas in the period 1948–50 light industry represented 77·5 per cent of total manufacturing output, its share went down to 60·9 per cent in 1963–70.31 This important shift is clearly reflected in the changing structure of the Greek export trade.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Correspondingly, there was shift away from agriculture in the economy. And by the 1970s the economy had become qualitatively industrialised:

“In 1960 agricultural products constituted 80 per cent of the country’s exports, but this figure went down to 54 per cent in 1966 and to 42 per cent in 1971, as Greece was more able to export industrial goods. … Despite the dramatic decrease of the agricultural population during the fifties and sixties, the agrarian structure does not show any signs of basic change: there is no marked tendency towards land concentration or the emergence of large-scale capitalist enterprises in agriculture.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

There was a major qualitative change by the 60s, towards industrial development. But it did not eliminate ‘under-development’:

“Thus the sixties saw a qualitative advance in the industrialization of modern Greece. There can be little doubt that the ability of the Greek economy to reap the benefits from concentrated foreign investment in manufacturing was due to its own pre-existing capitalist development. This was not able to generate a significant industrial sector autonomously, but it could adapt itself to, and consolidate one with exceptional rapidity. Yet this type of capitalist development not only failed to eliminate some fundamental aspects of Greek under-development, but on the contrary accentuated them, creating disruptions and dislocations which are directly relevant to an understanding of developments in the political superstructure.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

There ensued an enormous state monopoly centralized economy in the industrial sector:

“The intrusion of foreign capital, in close collaboration with Greek capital and the Greek state, reinforced the already impressive degree of capital concentration in the economy. A first rough intimation of this is conveyed by the enormous size (in terms of assets) of such giants as ESSO-Pappas or Pechiney, or the fact that out of the 200 largest companies in terms of fixed capital, seventeen were fully foreign-owned and in another thirty-nine foreign capital had a degree of participation varying from 10 to 90 per cent. As the share of foreign capital in the GNP steadily increased (from 2·15 per cent in 1962 to 8·15 per cent in 1972), the monopolistic tendencies of the Greek economy were markedly accentuated. If in the fifties monopoly or oligopoly were due mainly to indiscriminate and nepotistic state protectionism, in the sixties they were due rather to the capital intensive nature of the new industries and the small size of the Greek market.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

But the working class was still small. This is reflected in the predominance of small artisanal or petit-bourgeois production:

“This impressive concentration of industrial capital did not eliminate the plethora of small industrial units, which for the most part have a family-oriented, artisanal character. Indeed, one of the most striking characteristics of Greek industry is the persistence, especially in the more traditional sectors of the economy (footwear, clothing, leather, wood products), of small, low-productivity units side by side with large firms that exercise a quasi-monopolistic control of the market. The extent to which small firms persisted in the Greek manufacturing sector can be seen by the fact that whereas in 1930 93·2 per cent of manufacturing establishments were employing fewer than five persons, by 1958 this percentage had only gone down to 84·9 per cent. In 1958 the percentage of firms employing more than twenty persons was 2·1 per cent.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

The working class and peasantry of Greece became progressively more squeezed:

“Gross per capita in- come, approximately $500 at the beginning of the sixties, had reached the $1,000 level by the end of the decade.38 But the few rough calculations which have been made in the absence of complete data leave us in no doubt as to the inequities which disfigure this spectacular gain. For instance, according to a relatively recent estimate, 40
per cent of the lowest income groups receive 9·5 per cent of the national income (after deduction of taxes and social security benefits), whereas the 17 per cent in the top income brackets receive 58 per cent. From 1954 to 1966, when the national income approximately doubled, profits tripled (banking profits between 1966 and 1971 quadrupled).
Obviously, as the relative share of big capital increases, the relative share of all other income decreases. Those engaged in agriculture are, as usual, the worst off. Thus in 1951 agricultural income amounted to 83·3 per cent of the average national income; the proportion dropped to 60·3 per cent in 1962 and 51·1 per cent in 1971… in 1950 independent cultivators and their working family-members constituted 92·39 per cent of the agricultural labour force.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

In summary, there was an unusual dual character to the industrial landscape in Greece. It was one of a state sponsored heavy industry tied into foreign capital, while the petit-bourgeois remained very active:

“the capitalist mode of production, dominant in the Greek social formation, is linked to the mode of simple commodity production (agriculture, artisanal industry) in such a way as to keep growing continuously at the expense of the latter—neither destroying it completely, nor helping it to develop. And it is precisely here that the most crucial difference lies between the western European and the Greek models of industrialization. The former involved either the destruction of simple commodity production in agriculture and industry, or its articulated incorporation into the capitalist mode of production through a specialization which established a positive complementarity with big industry. As a result, the effects of technical progress, which originated in the dynamic sectors, spread fairly quickly to the rest of the economy, with beneficial consequences for income distribution, the expansion of internal markets and so on. In the Greek social formation, by contrast, capital intensive industrial production has taken an ‘enclave’ form. Despite its rapid growth in the sixties, it has not succeeded in expanding or even transferring its dynamism and high productivity to the backward sectors of the economy. Thus simple commodity production looms large within the Greek economy. It gives a lot (directly and indirectly) to the capitalist mode of production, but takes very little in return—just enough to reproduce itself. As a consequence, inequalities in Greece are much greater than those found in the West. For in addition to the usual inequalities between labour and capital in the sectors where the capitalist mode is dominant, Greece has inequalities resulting from the persistence of vast productivity differentials between ‘modern’ and ‘backward’ sectors of the economy.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

As the Greek countryside was becoming depopulated, many peasants emigrated. This deprived the Right wing forces in the countryside of support. The on-going immiseration-depression of the living standards of the working people led to a resurgence of left support. After some electoral gains of the left, the RIght wing army faction decided to set aside the triarchy of Army, parliamentary forces and Monarchy – and to become the sole power base.

How Cyprus Became the Focus of Imperialism and Heated Up Greek Battles

During this time, the relations between the Greek and Turkish pro-USA client states became strained with the Cyprus crisis. The Cyprus struggle had initially started as a war of liberation against the Ottoman Empire and Turkish oppression. It now pitched a small weak Cypriot national bourgeoisie against both the pro-Greek compradors and the pro-Turk compradors.

“The movement for liberation began under Turkish rule among the Greek Cypriots, who suffered particular oppression, and its main demand was for “Hellenic unity”, for “enosis” (that is, union with Greece). The movement continued to develop under British rule, and with the development of a weak Cypriot national bourgeoisie this class came to lead the liberation struggle. The effective leader of the movement was the Ethnarch of the Greek Orthodox Church, Mihail Mouskos — Archbishop Makarios — and embraced two organization
1) the National Organisation for Cypriot Struggle (EOKA), a right-wing body sponsored by the Greek government and led for many years by Greek General Georgios Grivas; and by

2) the Progressive Party of the Working People of Cyprus (AKEL) a body representing more directly the interests of the Cypriot national bourgeoisie, and presenting a left-wing image to appeal to the workers, peasants and urban petty bourgeoisie; it was led by Ezekias Papaioannou.”

(Marxist Leninist Organisation of Britain (MLOB) “THE CARVE-UP OF CYPRUS” “Class Against Class”; No.7, 1974. (http://ml-review.ca/aml/MLOB/CYPRUS_Fin.htm)

The fortunes of the Cyprus liberation movement were inextricably tied to the turn of events in Greece. Here the US imperialists held dominant sway:

“By 1966 Greece had become a semi-colony of US imperialism, and this position of dependence was reinforced by the military coup of 1967 which established a military dictatorship in Greece subservient to US imperialism. From now on the demand of the Cypriot national bourgeoisie (represented by the Makarios government) for national independence had the overwhelming 
support of the mass of the Greek Cypriots, while enosis became the demand only of the pro-imperialist Greek Cypriot comprador bourgeoisie.“

(MLOB, “The carve-up of Cyprus” Ibid)

What was the character of the ‘Independent’ state of Cyrus? In reality it was a neo-colony of Britain:

“In December 1959, prior to the granting of “independence”, elections were held for a Provisional President of Cyprus, Makarios stood on a platform of acceptance, with reservations, of the British imperialists’ plan and was elected by a large majority.
Despite the fact that Makarios represented the interests of the Cypriot national bourgeoisie, the British imperialists felt it safe to hand over “power” to a government headed by him by reason of the antagonisms artificially built up between the Greek Cypriot and Turkish Cypriot communities on the island, believing that these antagonisms and other “safeguards” could be effective in preventing the Makarios government from taking any steps to end the neo-colonial status of the island.
The “independent” Republic of Cyprus which came into being on August l6th, 1960 was, in reality a neo-colony of British imperialism.”

(MLOB “The carve-up of Cyprus” Ibid)

While Archbishop Makarios was a representative of the Cypriot national bourgeois, he was unwilling to launch a struggle that unleashed the power of the working class and peasantry. Thus he was left to resort to intrigue and maneuvers aimed at “seeking advantage of the contradictions between various powers” (MLOB). However this was ineffective as the USA blocked shipped arms from the USSR.

3. The Greek Junta – Greece by now fully a client state of the USA

As noted, the 1967 Greek military dictatorship was established by a coup backed by the USA. It was precipitated by the increasing working class struggles against the poor economic situation of the neo-colonial state of Greece, whereby:

“US civil aid came to an end in 1962; Greece was admitted as an Associate to the European Economic Community; and partial settlement was reached of Greece’s long-standing indebtedness to creditors in the USA and to private creditors in Britain. In each case the result was to add to the strain on the balance of payments..…. nearly one third of the budget was still devoted to defence… The stringency of the economic state of the country led to a number of ugly demonstrations. Strikes became increasingly frequent..”

Woodhouse C.M Ibid p. 282-283.

The then King, Constantine II was the Commander-in-chief of the army.
That the right wing forces were loosing support became clear from the 1958 electoral gains by left wing party EDA. The right wing section of the army – IDEA – launched the “Pericles” Plan:

“devised for the purpose of neutralizing the communists in case of war, this was used instead by the Right to achieve victory in the 1961 elections.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

This move by the extreme right-wing of the army, prompted George Papandreou
to start “Anendotos” — a “fight against the repressive policies of the Right.” His party was the “Center Union.”

“In the 1964 elections, Papandreou’s Centre Union successfully challenged the electoral dominance of reaction. In the elections of the following year, it further consolidated its position by gaining an unprecedented 53 per cent majority. Meanwhile, a strong left wing emerged within the Centre Union, under the leadership of Papandreou’s son Andreas.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Although George Papandreou tried to move against IDEA. He also tried to improve some aspects of working peoples lives. Together this prompted the Army and the Monarchy to plot against Center Union by slandering his son Andreas, as a traitor who shared state secrets. An interim coalition government of centrists was formed but fell quickly. Panagiotis Kanellopoulos formed a ‘Service Government’, prior to an election. However, the Army remained determined to sweep away any opposition:

“In 1967, the Greek military seized power in a coup d’état, overthrew the centre right government of Panagiotis Kanellopoulos. It established the Greek military junta of 1967-1974 which became known as the Régime of the Colonels.”
https://en.wikipedia.org/wiki/History_of_Greece

The Colonels did not change the economic direction of Greece, they made it simpler – they suppressed both workers, peasants and small petit-bourgeoisie – in support of the capitalists:

“The colonels, by following the logic of the economic model they had inherited, gave their unlimited support to big capital, foreign and indigenous. They made sure through repression that the ensuing growing inequalities would be accepted unconditionally, without protests or strikes to frighten capital away. After a short period of hesitation… private investment rose again and foreign capital continued its penetration of the Greek economy. The rate of growth soon surpassed pre-dictatorial levels and sustained an impressive acceleration. This achievement was a clear indication of the ‘fit’ between rapid capital accumulation and the dictatorship. Moreover… despite growing inequalities, the standard of living grew steadily during the period of the dictatorship. The colonels brought to fruition a process of dependent industrialization that had started before them. They did not initiate it, they merely pursued it with vigour and consistency.”

(Mouzelis, Nicols. Ibid; New Left Review; 1976).

Although Mouzelis is sceptical that the USA supported the coup, it most likely they did. Much later on, USA President Clinton – admitted that the USA had backed the Junta:

“When US President Clinton visited Greece in 1999, he obliquely offered what sounded like an apology when talking about a “painful” aspect of their recent history.
“When the junta took over in 1967 here, the United States allowed its interests in prosecuting the Cold War to prevail over its interests — I should say, its obligation — to support democracy, which was, after all, the cause for which we fought the Cold War.” Clinton said in his conciliatory remark,
“It’s important that we acknowledge that.”

Remarks By President Bill Clinton and Prime Minister Simitis of Greece to the Government of Greece, Business and Community leaders. Inter-Continental Hotel Athens, Greece – November 20, 1999.
Anti-Revisionism in Greece ‘The Rule of the Colonels’
– the military Junta 1967-1974 https://www.marxists.org/history//erol/greece/junta-note.pdf

But there was never any serious threat to the Parliamentary section of the Triarchy. The working class had simply been resisting the economic pressures.

They had not been organised into a meaningful communist resistance.

The Junta soon became led by George Papadopoulos, who instituted a reign of terror against leftists and communists. The King tried in 1967 to establish himself as a sole dictator, but was rebuffed and fled to exile.

As Prime Minister, Papadopoulos continued a brutal dictatorship overseen by the dreaded Military Service Police (ESA) of Ioannides. The crude overthrow of any democratic norms even led the Council of Europe to demand Greece’s resignation. But:

“The Western Alliance as a whole continued to tolerate the dictatorship, on the grounds that Greece formed an essential part of NATO….. The US went still further.. American policy became one of active support. American and Soviet strategists were engaged in a duel in the eastern Mediterranean. It became even more intense after the ‘Six-Day War’ of June 1967 between Israel and the Arab states… In September 1972, an agreement was signed by which the US Sixth Fleet would enjoy home-port facilities at Piraeus.”

(Woodhouse C.M Ibid pp.298-99)

Repressions continued and provoked even a Mutiny in the Navy in 1973. In an infamous incident, the students at Athens Polytechnic were brutally assaulted in November 1973. Using tanks to suppress a sit-in, more than 20 students died. This allowed Brigadier Ioannidis to seize power for himself, behind a puppet General Grivkas (Woodhouse Ibid p. 305). Formal martial law was again installed.

Ioannidis now also moved to oust Archbishop Makarios from Cyprus in a coup d’etat. Moreover this was coordinated with the imperialists in order to ensure the partition of Cyprus into a ‘Greek” area and a “Turkish” area. Events unfolded as follows:

“The pretext for action was a note from Makarios to Greek President Phaedon Gizikis on July 2nd., demanding the recall of the Greek officers of the National Guard on the grounds that they had been collaborating with EOKA-B (the terrorist Organisation formed by Grivas following his return to Cyprus in 1979 and continuing in existence after Grivas’s death in January 1974) in attempts to assassinate him and overthrow the government. The note set the deadline of July 20th. for compliance with the demand.

So, on July 16th, on the orders of their Greek officers, units of the (Greek Cypriot)–National Guard, in full collaboration with EOKA-B and with the Greek troops stationed on the island, staged a military coup and established a military dictatorship over the part of the island outside the enclaves under the control of the Turkish Cypriot comprador bourgeoisie’s “Transitional Administration”. A new puppet “President” was installed, one Nicos Sampson, a curfew imposed and thousands of supporters of the Makarios government arrested.

The Greek government recognised its puppet regime almost immediately. while the Turkish government threatened that unless the situation in Cyprus were reversed it would order its troops to invade Cyprus under the Treaty of Guarantee.

For four days the US imperialists and their allies in London, not only took no action, they deliberately obstructed the calling of the Security Council of the United Nations which could have taken some action. As Lord Caradon put it bluntly in a letter to the press:

“Due to the deliberate delay of the United States and the United Kingdom, it was not until after the invasion (i.e. of Cyprus by Turkish troops — Ed.) that the Security Council passed any resolution at all.”

(Lord Caradon: Letter to “The Guardian” 11 July 31st, 1974; p. 12).

Meanwhile, Makarios had managed to escape from Cyprus. He was received by the British government with formal, but non-committal, protocol, but the United States government talked with him only in his ecclesiastical capacity”:

“The President (i.e., Makarios — Ed.) had been given the chilly US reception of — in Dr. Kissinger’s terms — ‘a loser’, without hope of a comeback”.
(“The Observer”, July 28th.9 1974; p. 9).

On July 20th., therefore, some thousands of Turkish troops invaded northern Cyprus according to plan, occupying the principal area inhabited by Turkish Cypriots from the port of Kyrenia to the outskirts of the capital, Nicosia.

Later the same day, the US and British imperialists brought the Security Council into action, and it passed a resolution calling for an immediate cease-fire on Cyprus. And Greece and Turkey — despite being, according to the world press “on the verge of war” – dutifully obeyed.”

(MLOB; Ibid).

As Woodhouse rightly comments:

“The US was legitimately suspected of having backed Ioannidis”

(Woodhouse Ibid p.305)

4. Capitalist Class of Greece Moves to “democracy” and Europe

The work of the overt and now discredited dictatorship of the generals was done, they had suppressed any internal left opposition. The stage was set for the partition of Cyprus. Now under an international odium, the Colonels “took off their uniforms” – again under pressure again from the USA imperialists. As the MLOB put it:

“The Colonels Take Off Their Uniforms

On July 23rd 1967. The military junta that had exercised a military dictatorship suddenly stepped into the background over the people of Greece since 1967, and announced that they had invited civilian politician Konstantinos Karamanlis to form a civilian Cabinet.

Karamanlis is mainly remembered for his role as Prime Minister in arranging the murder (and its subsequent cover-up) of rival politician Gregori Lambrakis (portrayed in the film “Z“). While in exile in Paris, he was in June 1965 voted into Karamanlis’ party ‘New Democracy’. He was committed for trial by an investigating committee of the Greek Parliament for “bribery, dereliction of duty and maladministration”.

Due to an unfortunate error, the “democratic revolution” in Athens was announced by US Secretary of State Henry Kissinger the day before it actually happened. Even the capitalist press was compelled to treat the “revolution” with some cynicism:

“Dr. Kissinger and his emissary Mr. Joseph Sisco have played a key role in promoting governmental change in Gioecell.”

(“The Guardian”, July 24th., 1974; p. 2).

And in fact, little fundamental in Athens seemed to be changed. True, a considerable number of political prisoners were released (a necessary step in order to obtain enough politicians to form a government). But Brigadier-General Dimtrios Ioannides remained in office as head of the hated military police, martial law continued and in his Message to the Nation Karamanlis was careful not to mention the word “democratisation.”

(Marxist Leninist Organisation of Britain (MLOB) “THE CARVE-UP OF CYPRUS” “Class Against Class”; No.7, 1974. (http://ml-review.ca/aml/MLOB/CYPRUS_Fin.htm)

Nonetheless Karamanlis did restore the Constitution of 1952 (making it again a monarchy) and released all political prisoners and “legalised the CP for the first time since 1947”. (Woodhouse; Ibid; p. 305). In actual fact he had no real choice as the prior alliance that had formed the Triarchy (Army, right-wing parliamentarians, and Monarchy) had been totally discredited.

“When Constantinos Karamanlis, the grand old man of the Greek Right, stepped into the breech and formed the first post-junta government in 1974, it was immediately apparent that there could be no simple reversion to the old model of repressive parliamentarism… (But) his freshly formed New Democracy party retained and expanded the electoral support that had previously gone to the parties of the Right. But the political discrediting of both the army and the throne—which had, in any case, regarded with suspicion Karamanlis’s sixties project of modernizing the monarchy—left him with little choice but to seek the consolidation of right-wing hegemony through a populist inflection of internal and external policy… Within months of coming to power, the National Unity Government headed by Karamanlis had withdrawn from NATO’s military command structures, legalized the Communist Party for the first time since the civil war, organized relatively free general elections, and called a referendum that produced a 69 per cent majority in favour of the republic. Subsequent trials of junta leaders—in some cases leading to sentences of life imprisonment—underlined the subordination of the officer caste in ‘normal’ political activity…”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

By November 1974, elections had elected Karamanlis’ ‘New Democracy’ party. A further plebiscite confirmed a popular rejection of the monarchy. Karamanlis tellingly revealed his government’s objective nature:

“Karamanlis once remarked that he was himself the Americans’ only friend in Greece, and he dared not admit it.”

(Woodhouse Ibid p. 308).

Where was the economic development of Greece by now?
The hopes of the Greek capitalists had in fact not been fulfilled:

“In Greece… the early seventies already witnessed a rise in the specific weight of food, clothing and construction industries, and in the latter half of the decade manufacturing as a whole was contributing less than fifteen per cent of the annual increase in GDP, while fully three-quarters of GNP growth came from the inflated services sector. Manufacturing exports, given the small size of the internal market, had originally been conceived as one of the principal keys to success, and at first a number of important openings were found in this area. However, the recessionary tides of the seventies, together with the intense competition of low-wage economies precisely in textiles and other such goods, led to a loss of Greece’s market share everywhere except in the Middle East. By 1980, when PASOK was preparing to take over the reins of government, it was possible to talk of an actual tendency of deindustrialization, as the import/export ratio of manufacturing goods had risen to 3.2:1 from 2.5:1 in 1974.”

(Petras, James. “The Contradictions of Greek Socialism“: New Left Review; I/163, May-June 1987)

While Karamanlis was not anti-American, he was moving Greece towards Europe. Relations with Europe, in order to join the European Economic Community (EEC), became the focus. Karamanlis had spent 15 years as an exile in France, and the French government had sent him back to Greece on a government plane.

On 1 January 1981, Greece joined the EEC becoming its tenth member.
But Karamanlis was struggling to withstand the growing resistance as inflation drove a left shift. The by now openly revisionist Communist party of Greece (KKE) had begun to capture a portion of the electorate:

“At the left end of the spectrum, the Communist Party of Greece (KKE) rapidly consolidated a strong position in industry and a ten-per-cent bloc of the electorate”;

(Petras Ibid New Left Review 1987)

A new façade to divert the masses was urgently needed. The prior ‘centrist’ party of George Papandreou had been the ‘Centre Union’. After the Junta dissolved itself, this won 20% in the first elections, and supported Karamanlis in government. Consequently it soon disintegrated. George’s son, Andreas Papandreou had been trained as an economist in the USA. He had been instrumental in the pre-Junta parliamentary government, in attempting to curb the most right-wing elements of the Army (IDEA). He had fled into exile after the coup, and from there organised a resistance grouping – Pan-Hellenic Liberation Movement (PAK).

After the Karamanlis return to parliamentary rule, Papandreou organised the
Pan-Hellenic Socialist Movement (PASOK). Within 7 years it had won the in the Greek elections of 1981. It was an explicitly social-democratic formation proposing:

“full-scale nationalization and ‘an end to the exploitation of man by man’. …. And an all-round modernization of Greece’s productive system that would bring to the fore hi-tech industries employing local and expatriate skilled labour and producing for internal consumption and export. In foreign policy, Papandreou retained his reputation as an intransigent opponent of NATO and of any Greek involvement in the EEC .. All these themes came together in skillful and insistent propaganda centred on the need for comprehensive change or allaghi.”

(Petras Ibid New Left Review 1987)

By October, Andreas Papandreou was elected into power for the PASOK party.
It is true that early progressive moves were made during its government including early secularisation and improvements in the role of women:

“The more general secularization of Greek society, and the introduction of divorce by consent, civil marriage and equal rights for children born out of wedlock.. the Greek parliament has abolished various repressive laws from the fifties as well as some of the extreme powers given to the police, and although the military has largely remained a world apart, subject to no fundamental restructuring or parliamentary scrutiny, it has been deprived of the means of direct intervention that used to be provided by its own radio station. .. the EAM/ELAS Resistance was officially rehabilitated.”

(Petras Ibid New Left Review 1987)

However PASOK retreated quickly upon attempts to tax urban real estate, and did not try seriously to ever move on this front again. Industry remained at a comparatively low level against other countries of Europe. PASOK did not base itself on the working class, and thus never proposed any resolve to deal with either the Greek capitalists, or the petit-bourgeois small business. Corruption was a real problem and Petras proposes the term ‘kleptocrats’ to describe a stratum of especially corrupt business:

“Most of the ‘industrialists’ continued to accumulate wealth by borrowing huge amounts of capital from the state banks, investing a fraction and diverting the rest to overseas bank accounts. The debt/ capital-investment ratio remained one of the highest in the world because industry was directed not by the usual kind of entrepreneur but by a highly distinctive stratum of kleptocrats. Agriculture too suffered from underinvestment, irrational and costly marketing systems, with a multiplicity of small farms divorced from organized credits or from productive systems capable of providing cheap inputs or processing outputs.”

(Petras Ibid New Left Review 1987)

The preponderance of petit-bourgeois ownership of small businesses had bred its brand of tax evasion and corruption:

“In Greece, …the pervasiveness of petty-bourgeois ideology and the ability of the non-productive classes to evade taxes and acquire multiple sources of income. Until Greek society recognizes the working class as its most valuable asset in the drive for industrialization, it will be doomed to stagnation and crisis.”

(Petras Ibid New Left Review 1987)

PASOK would not move against the capitalist class. Instead it resorted to short term loans to head off worker and petit bourgeois discontent. PASOK rule led to inflation and the start of the debt. At the same time debt increased. Meanwhile
The financial sectors were bolstered whilst manufacturing was neglected:

“PASOK’s early spending spree… increase(d) the consumption of nearly all sections of the population without creating any new industrial capacity to meet that demand. The government raised wage income, partially offsetting the inflationary erosion in Karamanlis’s final two years; private capital responded by slowing investment to the merest trickle. Exports stagnated, while imports mushroomed and invisible earnings (the mainstay of the external sector) began a sharp decline. To secure the populist compromise the regime had turned to foreign loans, fiscal deficits and EEC subsidies; ….

Public sector borrowing soared from 12–1 per cent of GDP in 1983 to 17–1 per cent in 1985, without having any effect on domestic output; and particularly in the run-up to the June 1985 elections it was increasingly used to finance current expenditures, which rose from 39 per cent of GDP in 1984 to 41 percent in 1985. As one study has noted:

‘The fastest-growing category was employment in services, almost exclusively led by continuing substantial increases at around 3 per cent per annum in employment in the public sector and in banks . . . In the three years to 1985 employment in manufacturing declined by around 2–1 per cent.’ Table Two (below) sets out the still sharper fall in output during
the first PASOK term.

Table 2: Greek Industry, 1981–1984: 1970 =100

                                         1981 1982 1983 1984
Consumer goods 195     191      188      192
Capital goods        180     163      167      172
Source: OECD Report on Greece, 1985/86.”

(Petras Ibid New Left Review 1987)

Agriculture also saw falling production:

“Agricultural growth for its first term was as follows:
_1.6, 1981; _2.4, 1982; _6.8, 1983; _6.4, 1984; _0.5, 1985.
The reason for these meagre results was that only a small part of the funds were actually used in agriculture. The remainder were employed to ‘finance consumption, to be redeposited with banks at much higher rates, and to be used for the acquisition of real estate in urban areas.’”

(Petras Ibid New Left Review 1987)

In fact, while the now infamous external Debt of Greece, became a ballooning problem under PASOK. Petras cites figures from the OECD:

“PASOK has also increased Greece’s role as a subordinate debtor nation beyond the worst period of the old Right… (See Table 3 Below.) The foreign debt stands at 45 per cent of GDP and payments account for close to a quarter of export earnings. Given the phasing- out of EEC balance of payments assistance, commercial borrowing will soon have to increase more than twofold, on terms dictated by the foreign banks: namely, the closure of unprofitable public enterprises; greater freedom for employers to hire and fire workers; tough anti- strike legislation, relaxation of price controls, an expansion of public– private ventures, and an open door to foreign investment.

Table 3:

Greece’s External Debt (in billions of $)
                       1981 1982 1983 1984 1985 1986
Total Debt         7.9      9.5      10.6   12.3    14.8    17.0”

(Petras Ibid New Left Review 1987)”

In fact – all this is very similar to today, and the same demands for ‘austerity’ were raised then by the European banks.

This social-democratic party, now more openly objectively played the role of a pro-European comprador:

“Papandreou .. freely engaged in anti-American rhetoric… contending that the American imperialism was the most serious threat to humanity, Papandreou unnecessarily antagonised Washington.”

(Kofas JV; “Under the Eagle’s Claw – Exceptionalism in Postwar US-Greek Relations”; Westport 2003; p.184)

Meanwhile Papandreou was moving Greece firmly into dependency to the EEC:

“Dependency results from the growing EEC domination of the Greek economy. While the EEC has increased the transfer of loans and grants to Greece, this has been more than offset by the takeover of internal markets and the displacement of Greek manufacturers and farmers. To quote again from the OECD report: ‘Whereas Greek manufacturing output has remained broadly stagnant in the three years to 1985, import volume of manufactures may have risen by roughly one fourth in the same period.”

(Petras Ibid New Left Review 1987)”

Neither PASOK nor the party New Democracy (Led by Kostas Karamanlis, the nephew of the former President) – differed substantially in their political orientation towards Europe. Both were realigning from the USA to Europe:

“Greece evolved from a client-patron relationship with the US to being an EU member, subordinating its national sovereignty to the community….
With increased competition of the regional economic blocs.. after the Cold War Greece drifted further from the US, because Europe was drifting as it strengthened and expanded its own sphere economically financially, politically, and militarily…”

(Kofas JV; “Under the Eagle’s Claw – Exceptionalism in Postwar US-Greek Relations”; Westport 2003; p.248)

Greece’s leaders also did not appreciate the USA more overtly favouring Turkey as its vassal state of choice in the Aegean and Mediterranean. But in fact, Papandreou was posturing – and perhaps to the populist base that PASOK had bult, that he was ant-USA. After all, Papanadreous signaled to the USA that were better terms given to Greece, that this re-orientation could be re-visited. Correspondingly during the 1984-1985 year, the total US military aid to Greece actually went up (Kofas, p.200 Ibid). Moreover he renewed Greece’s allegiance to NATO, and enabled the US fleet continued facilities.

This hesitation of Greece’s capitalist leader to completely cut the USA off as their pay-master, reflects that of the European powers themselves (see below). The determination of the EEC to sharply diverge, reject its subordinate status and openly challenge the USA, was still to come.

By 1985, PASOK reversed all its earlier progressive steps for workers wages and trade unions. It increased unemployment to doubled its rate (it was now above 10%). It enabled employers to revert to arbitrary practices of hiring and firing, and empowered them to break strikes.

Greece’s path was set by the refusal to tackle the core problem: Refusing an independent path and adopting a pro-European comprador path – just as before it had been a pro-USA comprador path. What did this mean? Essentially it mean chronic indebtedness with no possible release. Warnings that were later to be echoed in 2014 – began to sound:

“Interest payments on the external debt have been undergoing a geometric progression (up from $466 million in 1980 to $1.1 billion in 1984), while exports have fallen from $4.7 billion in 1981 to $4.4 billion in 1984. … Capital flight has increased significantly in the 1980s, as it has done in other indebted rentier states. ….. a positive $15 million balance of payments in 1980 became a negative $312 million in 1984. For these reasons—together with the overwhelming predominance of speculative over entrepreneurial capital—it is clear that the financing of further growth is virtually excluded. Far from inducing the inflow of new resources for development, Greece’s ‘opening to the outside’ or ‘liberalization of the economy’ will facilitate the outflow of resources, thereby deepening underdevelopment. Nor will the device of lowering wages make Greek capital competitive, so long as industrial capital acts principally as a financial intermediary and fails to innovate and invent.”

(Petras Ibid New Left Review 1987)

The details of individual governmental changes up to the 2010 financial crisis in Greece, are beyond the scope of this article. In fact, they do not substantially alter the analysis. The trajectory of Greece was now set. While the political leaders were acting in the interests of the dependent capitalists (in essence all of Greek capital) – the compact with foreign imperialism would ensure the Greece crisis became a financial chain-reaction.

We must briefly examine the politics of the European coalition at this point.

The Appendix carries a detailed chronology describing the history of Greece from 1981 up to 2010.

5. The USA Moves to Become the World Imperialist Leader – The Character of the European Union – from pro-USA states to anti-USA coalition

Moving to a meaningful trans-national coalition of European capitalist states – took several steps and forms. The coalition morphed from a post-war Europe wish to re-build, through to the European Economic Community (EEC) and then to the European Union (EU):

“The Community’s initial aim was to bring about economic integration, including a common market and customs union, among its six founding members: Belgium, France, Italy, Luxembourg, the Netherlands and West Germany. It gained a common set of institutions along with the European Coal and Steel Community (ECSC) and the European Atomic Energy Community (EURATOM) as one of the European Communities under the 1965 Merger Treaty (Treaty of Brussels). In 1993, a complete single market was achieved allowing for the free movement of goods, capital, services, and people within the EEC…

Upon the entry into force of the Maastricht Treaty in 1993, the EEC was renamed the European Community to reflect that it covered a wider range than economic policy. This was also when the three European Communities, including the EC, were collectively made to constitute the first of the three pillars of the European Union, which the treaty also founded. The EC existed in this form until it was abolished by the 2009 Treaty of Lisbon, which incorporated the EC’s institutions into the EU’s wider framework and provided that the EU would “replace and succeed the European Community.”

(Wikipedia: https://en.wikipedia.org/wiki/European_Economic_Community)

Through these steps, the class alliances of the countries of the European alliance changed in its essential character.

Immediately post-Second World War, the European countries, were formed into a pro-USA formation. However over time they became anxious to attain autonomy from the USA. This fight-back reached a climax after the USA launched its financial attack in launching the Dollar Hegemony in the Plaza Agreement of Richard Nixon in August 1971. This act finally precipitated the formation of the Eurozone. This section traces the course of the changing class character of Europe in the post-Second World War decades.

At the end of the Second World War, the USA planned to rebuild European capitalism through the USA Marshall Plan for its own ends. This was facilitated by the fact that the Second World War had physically devastated Europe, and that many countries were in debt to the USA. Britain, for example was now completely beholden to its major competitor – the USA:

“When sales of foreign investments and of gold and dollars are added in, the net change on capital account between the outbreak of war and the end of 1945 amounted to no less than Pounds Sterling 4,700 million. The United Kingdom ended the war with the largest debt in history.”

(A.Cairncross. Years of Recovery, British Economic Policy. 1945-51. London, 1985. p.7). 

American imperialists recognised that Europe needed to be re-built as a bulwark against further socialist upheavals. Especially as the USSR successful battles, had become an inspiration across the world. The USA imperialists – as personified by James Warburg (part owner of the House of Morgan, a controller of USA international finance and industrial and utility trusts) – remarked:

“Germany was the hub of the weak German economy ‘the largest single compact mass of skilled labour on the Continent’, it should be transformed from ‘the present poor-house and plague-center’.. ‘into a powerhouse for a rapid reconstruction of Europe, without letting the powerhouse acquire too broad a permanent franchise and – above all – without letting the powerhouse ever again become an arsenal’…. ‘The Westward thrusting of communism will not be stopped by an physical frontier. It can be only stopped only a planned, US-Aided reconstruction so liberal and even revolutionary as to meet the challenge on its own grounds, and to strike the meaning from the accusation of American “dollar diplomacy.”

(Van Der Pijl, K. ‘The making of an Atlantic ruling class”; pp. 42-43,146; London 2012).

As time would show, once Europe had been rebuilt as a bulwark, the USA could not restrain European capitalists wanting their own dominance.

In postwar Europe – the Marshall Plan was one of the three trade and economic tactical instruments by which the USA imperialists wished to take advantage of the post-Second World War crippling of the European powers. The other two were the creation of the International Monetary Fund (IMF) and the creation of the General Agreement of Trades and Tariffs (GATT). The military instrument to back these up was of course the North Atlantic Treaty Organization (NATO). The Marshall Plan was conceived as an anti-communist and anti-nationalist weapon and a means to erode European independence:

“The establishment of American hegemony in the North Atlantic area was directed simultaneously against the spread of planned economy and social revolution beyond the Soviet-controlled area in Europe and against the national, self-contained reconstruction programs pursued by most West European states in the immediate post-war period. These programs in which local Communists parties participated, were judged unsuited for maintaining capitalist rule in the long run. ‘Europe would have been Communistic if it had not been for the Marshall Plan, Marshall Aid administrator Paul Hoffman claimed in February 1950.”

(Van Der Pijl, K. Ibid; p.148-9)

Van Pijil summarises that:

“Through the Marshall offensive, the Pax American was imposed on the economic ruins of the defunct Pax Britannica in Europe.”

(van Pijl Ibid p. 167) .

But the formation of the IMF was another key strand of the USA design.

“Bretton Woods.. Shorthand for the system, designed by the US and Britain, that governed international monetary and economic relations in the decades following the Second World War. … (It was) the launch of the post-war phase of super-dominance of the US and the dollar. .. All member countries pledged themselves to play by an internationally agreed set of rules…these rules were quite strict, and enforced by a new world economic policeman, the International Monetary Fund (IMF). Countries had to declare a ‘par value’ – an exchange rate – of their currency in terms of the American dollar and/or gold, and change it only in consultation with the IMF. Various forms of currency manipulation were named … to prevent a return to the competitive devaluations and currency chaos of the 1930s. While countries could keep some controls on movements of capital, they basically undertook gradually to dismantle the wartime systems of exchange and trade controls and to move towards the free convertibility of their currencies… they also pledged themselves to adhere to the rules of the multilateral trades and payments scheme”;

(Dean, Marjorie & Pringle, Robert “The Central Banks”; London 1994 p.75).

In return for this agreement, the USA agreed to take over the position as “lender of last resort” – whereby it would honour those creditors who wished to remove gold in exchange for dollar. It would:

“Submit to discipline by its agreement to convert into gold any dollar balances presented to it by overseas central banks at the fixed price of $35 an ounce. The US was the only country to accept such a gold convertibility obligation and the only one in a position to do so, having ended the war owning about two-fifths of the world’s stock of monetary gold”;

Dean and Pringle; Ibid p. 76.

This in effect took over the dominant position of lender of last resort that the British government had previously held from 1924 to September 1931 (Dean and Pringle Ibid p. 63). The US was anxious to see this agreement effected as it would enable the USA to control international monetary policy:

“In these countries (Ed -ie. those agreeing to join the IMF) national central banks of countries other than the US had little influence on policy decisions. Domestic and economic policy came to be dominated by one objective – the maintenance of the fixed exchange rate against the dollar – and exchange rate policy, was of course entirely a matter for government…. For the most part, a government would respond to an impending payments deficit by tightening fiscal policy (Ed-i.e. dropping the printing of money) or putting up interest rates; and a country with a surplus would ease fiscal policy or lower interest rates. Of the major countries only France resorted regularly to devaluation as way of maintaining its export competitiveness and growth.”

(Dean and Pringle; Ibid p. 76).

This meant that the USA did not need to try to maintain its currency value. All countries had to acquire the dollar; there was no need for the dollar to be defended at any particular rate of exchange. By 1949 the US had acquired 72 % of the world’s gold. The Bretton Woods Proposal had been resisted by Lord Maynard Keynes of Britain, but to no avail. This Agreement eased the post war period for the USA, because all other Central Banks had to have a dollar reserve:

“Making the dollar a reserve currency meant that central bankers round the world had to have dollars. They had to buy dollars in the marketplace which pushed up the price of the dollar up, threatening the parity of the currency with the dollar. Thus they could only buy when the dollar was weak… This suited the US and the US Federal Reserve which could follow a very lax monetary policy to make sure that there were always dollars to go around. It worked wonders for post-war US domestic policy, helping promote the wartime dream of full employment.”

(Bose, Mihir “The Crash” London, 1988. p.135).

The USA was in an unusual position of dominance. It had funded the war for the Western capitalist allies, detonated the Atom bomb thereby showing its military dominance, and had a home base that was unaffected to a large extent by the war. It proceeded to further dictate terms, to ensure its vote in the IMF on decisions, was a veto:

“In order to finance European and other foreign purchases from America, that is to ensure adequate financial resources to sustain US exports, (“world trade”) the US Government had taken the lead in 1944 at Bretton Woods to establish the International Monetary Fund (IMF) and the World Bank. Loans were provided by the U.S. Government and US credit markets via the World Bank to European governments, which used them mainly to pay for goods supplied by American exporters. The source of the original loan funds provided by the IMF came from foreign currency and gold subscriptions by the participating nations. America’s subscription amounted to almost $3 billion and entitled it to nearly 30% of the voting power. The member nations agreed that an 80% majority vote would be required for most rulings, thus conceding unique veto power to the US… Europe was fully aware that it was ceding to America the option of determining its own currency values and tariffs. The US was the only nation with sufficient foreign exchange to finance a program of overseas investments, long term financing and foreign aid…”

(Hudson, Michael. Global Fracture, the new international Economic Order. New York, 1977. p.11-12).

Such a ceding of power to the USA was self-evident as any debts to the USA were only made payable in dollars or gold. The Bretton Woods Agreement had after all made the dollar “as good as gold.” The USA actively hoarded gold. Until 1958 and the Korean war the gold stocks of the USA remained exceedingly high, in correspondence with the USA stipulations on repayment). The USA also ensured that the major European powers joined the Gold Pool. This served:

“To ensure that the gold parity of the dollar would be supported by the central banks, the European ones mainly, who would thus have to sell central bank’s stocks of gold as the occasion demanded. The price of gold was kept artificially low at a time when the price of goods was rising. The dollar thus stayed as good as gold and the US was freed from the threat of having to support the gold parity of the dollar by itself, or of seeing gold overtake the dollar as an international reserve instrument which remained a theoretical possibility in the framework of the Bretton Woods Agreement. The US spared no efforts in its campaign to impose and maintain the Gold Standard.”

(Fiit,Yann, Faire, Alexandre, and Vigier, Jean-Pierre; (“The World Economic Crisis, US imperialism at Bay”; London, 1980; p.76.;p.83).

Britain was being firmly eclipsed by the USA as the foremost imperialist. The pivotal point forcing even the most stubborn British imperialists to recognise this, came in the Suez disaster of 1956 (these events were described in “The Gulf war – the USA Imperialists Bid To Recapture World Supremacy” at
http://ml-review.ca/aml/allianceissues/alliance2-gulfwar.htm)

Meanwhile the other European capitalists searched for ways to move into more independence. This was a slow process. The USA continued to exert major obstruction to real independence for some time. Within each of the major European states, some elements were more inclined towards the USA (i.e. compradors – the so-called pro-‘Atlantic’ bourgeoisie), some were more interested in maintaining an independent sovereignty (the so-called ’Euro-nationalists’). These tensions played out over decades, spanning three “waves” of USA offensives:

“Three successive strategies of Atlantic unity .. corresponded to the different offensives periods of American capitalism. The first was Roosevelt’s concept of Atlantic universalism, which derived its specific Atlantic dimension from the American focus of World War Two and the key position of the British Empire in the world America wanted to expand into. The second version of Atlantic unity was the Atlantic Union idea, which surfaced at the time of the Marshall Plan and combined a status quo approach to control of the periphery with a high-pitched Cold War unity against the Soviet Union. The third Atlantic strategy was the Atlantic partnership scheme promulgated by President Kennedy in an attempt to restore unity of purpose to an Atlantic world in which the establishment of a restrictive EEC demonstrated the degree to which Western European capital had emancipated itself from American tutelage and was intent on carving out a sphere-of-interest of its own.”

(Van Der Pijl, K; Ibid; p.xxxiv; London 2012).

The so-called Atlanticists (the comprador bourgeoisie for the USA – a term usually reserved for countries of colonial or semi-colonial status) were largely representatives of finance capital. These were interested in the freedom of shipping capital reserves freely across international boundaries. They are also termed “liberal internationalists” by van der Pijil.

In contrast the “Euro-nationalists” represented industrial capital – and were interested in ensuring reinvestment in and redeveloping a European heavy industrial base. They supported single ‘sovereign’ or independent, state funding of heavy industry and can be termed state monopolists .

As an internal intra-European battle between these two segments of capital occurred, the USA imperialists initially favoured steps to a pan-European supra-national state. Of course this single supra-national state, has still not been achieved. However between 1945-1998 – there were periods where the European Euronationalist capitalist powers waxed and waned, as USA imperialism counter attacked.

Regardless of whose interests it served, the overall tendency was towards a move for unity of the smaller European countries. Only later was directed against the USA hegemony. The class character of the European coalescing would shift form a pro-USA vassal coalition to an anti-USA coalition. Ultimately this would end up being dominated by the German bourgeoisie.

Through this period, the fading British imperialists continued to rely and favour USA imperialism. In fact it was actually Ernest Bevin, British Foreign Secretary who first proposed the NATO alliance:

“The actual initiative to found a North Atlantic military alliance was taken by Ernest Bevin in 1948 following a series of defence treaties between Western European states… Bevin .. in early 1948, urged … formal Atlantic cohesion of a political nature.. to USA Ambassador Lew Douglas.. the treaty establishing the NATO was concluded in April 1949”

(Van Pijl Ibid p. 157).

Early on French imperialism, as represented by General De Gaulle, wished to utilise USA strength to stand against the USA. The early events were summarised as below:

“The war encouraged a proliferation of new schemes for European regional organisation. De Gaulle for instance repeatedly voiced the idea that European unity might be a bulwark against both the Soviet Union and the United States, and comparable arguments were heard in various segments of the German, Italian, and Dutch bourgeoisie Resistances….

Churchill’s proposal for a Council of Europe provides probably the best example of the (Atlanticist) concept of European unity… coupled to Britain’s desire to maintain its special link with the Commonwealth and the United States.. “

(Van Der Pijl, K. Ibid; p26; London 2012).

In contrast:

“The Euronational concept combined a number of state-monopolisitic attributes like a strong emphasis on a “European” economic policy with a distinct rejection of Atlantic unity” ;

(Van Der Pijl, K. Ibid; p26; London 2012).

The first USA steps to infiltrate Europe were actually before the Second World War. In most accounts, Jean Monnet the post-war Finance Minster of France figures prominently:

“Jean Monnet… was perhaps one of the foremost in the European postwar leaders to see the necessity of a coalition of European countries…. As early as 1921 Monnet had advised Eduard Benes: To address the problem of the weakness of Central European economic by establishing a “federation because of the region formed a “natural economic unit.”

(James Laxer. “Inventing Europe”; Toronto, 1991.p. 27).

Later in the Second World War: 


“Writing on behalf of the French Committee of National Liberation, Monnet for the first time advocated the formation of a federation of European states to be established following the conflict..”

(Laxer, Ibid, p. 27).

But Jean Monnet was in reality, a pro-USA comprador. He had spent many years working in banking in the USA and had married a scion of the US ruling classes. Ultimately he saw not a rivalry between the USA and pan-Europe, but a partnership, which later USA President Kennedy was also to espouse (van Pijl p. 29):

“The most important representative of the Atlantic Partnership, or Euramerican concept in France was Jean Monnet. 1962 was Monnet’s year of triumph, in which he thought the partnership of equals between the US and the EEC, by which the Soviet union could be effectively checked, was actually materializing. In Monnet’s view this would entail European military autonomy as well. ‘Equal partnership must also apply to the responsibilities of common defense, it requires amongst other things, the organisation of a European atomic force including Britain and in partnership with the US.”

(Van der Pijl: Ibid; P. 225).

Monnet’s relationship with the USA ruling class representatives of capital was close at even a personal level:

“There is no doubt.. Monnet’s initiatives .. owed much to American encouragement. His decisive advantage was the closeness of his association with the USA political elite.. the Dulles brothers, Acheson, Harriman, McCloy, Ball and Brice and others.. he was to become widely distrusted in his own country because of it..”

(Anderson, Perry. “The New Old World”; London 2009 p.15)

“Monnet’s strength as an architect of integration (i.e. of Europe – ed) did not lie in any particular leverage with European cabinets… but in his direct line to Washington.”

(Anderson, Perry. Ibid; p. 17)

By May 1949, the first concrete post-war steps for uniting Europe into a pro-Atlantic (i.e. pro-USA) bloc led to the Statute of the Council of Europe.

On 9 May 1950, the French Foreign Minister Robert Schuman proposed to integrate the coal and steel industries of Europe. The Schumann Proposal for the European Iron and Steel Community, was designed to form a competitive market in iron and steel, using substantial public sector capital. Britain refused to join at that stage. By 1958, trade in the ECSC in steel had increased by 157% and steel output by 65% (Laxer, p. 38).

In “Alliance Marxist-Leninist” of October 1992, the Schumann Plan was portrayed as an anti-American move; and Jean Monnet as a Euronationalist. Alliance was incorrect in this analysis. (Alliance Marxist-Leninist ALLIANCE (MARXIST-LENINIST (Number 3, October 1992) “Crisis In Capital And Their Solution – Free Trade And Protectionism In Developed Countries” http://ml-review.ca/aml/AllianceIssues/ALLIANCE3ECONOMICS.html

The reality was far more complex. In fact the USA had argued that the Schumann Plan was of use since:

“Secretary of State Acheson in 1951 estimated that the Schumann Plan was useful.. since it would “pull Germany, certainly Western Germany into economic relationship with Europe. It will tie it in and lay a foundation which will ally fears the Germany might come loose and go off on an independent or pro-Russian policy.”

(van Pijl Ibid p. 157) .

The USA imperialists with their European stooges – and even with the Euro-nationalists – at this stage all continued to agree that Europe needed to unite. The vision of many planners of USA strategy, was akin to that of Paul Hoffman – leading member of the Committee headed by Averell Harriman secretary of Commerce – speaking to the Senate Foreign Relations Committee in 1950:

“We know that there is no possibility of Europe becoming the kind of an economy that will make it a great force of strength in the Atlantic community unless we break down the barriers between those 17 political subdivisions with which we are working… so that you have a single market, or something close to it, in which you will have large-scale manufacturing because you have a large market in which to sell it.”

(Van Pijl Ibid p. 197)

Britain and France after Suez, had to accept that in the immediate future, their only role on the world stage would be as a junior partner to USA imperialism. They threw their lot in with the Americans. The USA used their influence with the British to disrupt attempts at a defence force independent of the US.

But as the USA became ever more hegemonic in Europe, De Gaulle and others turned to resist USA incursion. This was forseen by J.V.Stalin:

“Britain and France .. are imperialist countries.. Can it be assumed that they will endlessly tolerate the present situation in which.. Americans are penetrating into the economies of Britain and France and trying to convert them into adjuncts of the USA economy?

…Would it not be truer to say that capitalist Britain and France will be 
compelled in the end to break from the embrace of the USA and enter into conflict with it in order to secure an independent position and of course high profits?”

(J.V. Stalin, “Economic problems of the Socialism in the USSR”; Moscow, 1952. p. 38).

The loosening of the dependency chains on European nations formed by the credit of the USA Marshall Plan would take several interim steps.

By 1957, the Treaty of Rome was signed which established the European Economic Community (EEC). Consistent with its overall European strategy, the formation of the EEC was supported by the USA. In fact:

Eisenhower (said) .. that the Treaty of Rome would be one of the finest days in the history of the free world, perhaps even more so than winning the war”;

(Anderson; Ibid; p. 18).

There was now a dramatic opening of the European market for financial penetration – to take over European industries, as well as their markets:

“The shift from commercial to financial penetration (ie of Europe – by the USA -ed) was confirmed by the formation of the EEC. The Common Market dramatically changed American prospects for expansion in this respect.“

(Van der Pijil; Ibid, p.193)

In reply to De Gaulle, the USA attempted to weaken the development of the future European Union, by using its stooge the weak British imperialists. Thereupon French General De Gaulle later on vetoed the entry of Great Britain into the EEC for precisely this reason.

By the time of Nixon and Kissinger, the situation had shifted. Now the USA perceived the threat in the now built up European Community:

“(they) started to perceive the potential for a rival great power in Western Europe”;

(Anderson Ibid p. 21).

How had things changed so dramatically? The balance of power between the Euronationalists and the pro-US Atlanticists had changed after the rise of the dollar hegemony. To recap, the Bretton Woods Agreement of 1944 to stay on a gold convertibility was simply put aside by the USA. By the 1960s, under USA President Johnson, inflation was created by printing more dollars. This enabled the USA to fund the Vietnam War and its limited social reforms of the so-called ‘Great Society” (Dean & Pringle Ibid p.80; Palmer Ibid p.61). This had dire consequences:

“The net result in the succeeding decades was a scale of Federal domestic budget deficit and increasingly, balance of payments deficit without precedent in US history. At first the deficits and consequential outflow of dollars into the world economy had been regarded as benign.. The deficits initially helped to finance the mutual economic recovery of Americans’ allied (and client) economies. But as the outflow of dollars turned into a might flood, American control over banks grew by leaps and bounds, Between 1970 and 1975 the assets of overseas branches of US banks grew from $47 billion to $166 billion. The over-valued US dollar came to be seen as the means by which European industry was being acquired cheaply by US interests… fears were expressed that Western Europe was being turned into a fiefdom of US multinationals.. By the late 1960s the gap between the US dollar’s internal purchasing power and its international value had widened alarmingly. The Europeans were faced with the choice of either accepting these depreciating dollars (and thus, in effect, of subsidizing the American economy and worldwide military and political commitments) or exploiting America’s Bretton Woods commitment to swap dollars for gold at the fixed prices.”

(Palmer Ibid p. 62).

De Gaulle remarked early on, that this was a USA attack using dollarization of the world economy, and warned that:

“The Americans only used the atom device twice on Asia. … but they use the dollar on Europe every day”

(Cited Palmer, John: “Europe without America? The crisis in Atlantic Relations”; Oxford; 1988; p.62)

Essentially the USA was pursuing a policy of financial export to drive acquisition of European industrial and financial companies. Simultaneously it unwittingly began the financialization driving world inflation – from ‘hot money’. European nationalist leaders of many countries objected. As well as De Gaulle, French President Giscard d’Estaing objected:

“It is rather remarkable that the war in Vietnam, a localized conflict of a very special nature involving a great power and a small power could have such a far reaching effects on world economic equilibrium.. Any other country that was faced with a balance-of-payment deficit of this magnitude would have been obliged to take steps to restore balance whereas the US was not obliged to do so; the method of financing its deficit exempted it from having to restore equilibrium and it was therefore a system which caused considerable inequality in the interplay of monetary power…”

(Hudson, Michael, Global Fracture, the new international Economic Order. New York, 1977; p.31).

In another more serious threat to USA hegemony, the German state had become more pro-independent. Earlier leaders (Konrad Ardenauer Chancellor [1949-1962] and Ludwig Erhard [Chancellor 1963-1965]) of post-war West Germany had been resolutely pro-USA. The attitude of later German leaders can be gauged from a remark made by Chancellor Helmut Schmidt (Chancellor 1974-1982) when he decried:

“The misuse of the dollar as an instrument of US foreign policy.”

(Cited Palmer John: “Europe without America? The crisis in Atlantic Relations”; Oxford; 1988; p. 10)

This reaction against the USA had its counterpart in Britain in the Westland Helicopter crisis, where Defence Minister Michael Hesletine revolted against Mrs Thatcher. He was soon despatched by the stalwart pro-USA Mrs Thatcher. This was pointed out by the Communist League at the time.

The salient point is that the USA fiscal policies prompted the Euronationalists to move towards the European Monetary System (EMS) and before that the Snake. This then became the European Monetary Union (EMU):

“European Community alarm at the misuse of the dollar’s privileged position in the world currency system encouraged the EEC states to distance themselves in monetary policy from the US in the late 1970’s. President Valery Giscard D’Estaing of France led – despite British opposition – to the creation of … the EMS.. the breakup of the dollar-dominated monetary system also marked the end of the earlier Atlantic consensus enshrined in the Bretton Woods Agreement of 1944”;

(Palmer J ibid p. 11).

In Alliance Marxist-Leninist Number 3, 1992, we traced the rise of the European Union and the emerging hegemonic role of the unified single German State – after the disintegration of the Comecon states including former East Germany.

We concluded Alliance 3 by characterising the then inter-imperial rivalries as follows:

The current crisis of capital forces formation of blocs.

The current epoch is one of a disintegration of the power of the USA imperialists and an increase in power of the German and thereby European imperialists and the Japanese imperialists. Each of these competitors strive to create a super trading bloc; within whose borders free trade (or ‘ freer trade’) occurs. Outside of the bloc, protectionism is the policy.

These policies result from the major crisis of over-production that the world is experiencing. The final rupture of the Comecon capitalist block offers the only untapped market; and so the Blocs are trying to extend themselves into the ex-Comecon markets.

In the case of the USA Free Trade Bloc being set up between Mexico, the USA and Canada; the Block is clearly under the domination of the USA. Here there is no effective balance between opposing international imperialism. The differences between the European imperialists do allow for a certain balance; this is not achievable between the USA and Canada; and less so between USA and Mexico.

….. The European Economic Community is more delicately balanced between the competing imperialists. Of the nations within the fold, only Britain (now a junior partner) has significant allegiance to the USA. The others are far more committed to the EEC; even risking domination by Germany.

In the Far East, it is likely that a massive trading bloc between Japan and China is going to make it impossible for many of the Pacific basin nations not to enter an alliance dominated by the Japanese imperialists.

These maneuvers are the first salvoes of the next World War.”

(Alliance 3: Ibid: http://ml-review.ca/aml/AllianceIssues/ALLIANCE3ECONOMICS.html)

We believe that these assessments – overall – remain correct. They are also, consistent with Stalin’s famous prediction that under capitalism competitive wars for markets were inevitable, and that sooner or later – Europe would chafe under USA domination:

“Inevitability of Wars between Capitalist Countries”; Some comrades think that owing to the development of new international conditions since the Second World War, wars between capitalist countries have ceased to be inevitable. These comrades are mistaken. Outwardly everything would seem to be going well; the USA has put Western Europe, Japan, and other capitalist countries on rations; Germany (Western), Britain, France, Italy & Japan have fallen into the clutches of the USA and are meekly obeying its commands. But it would be mistaken to think that things can continue to “go well” for ” all eternity”, that these countries will tolerate the domination and oppression of the United States endlessly, that they will not endeavor to tear loose from American bondage and take the part of independent development.”

(Stalin; ‘Economic Problems of the USSR”: Peking; p.33).

Now in 2015, as we update the picture in 2015, the basic rhythm of inter-imperialist struggle has not changed dramatically but become even more intense. The final crumbling of the ex-Comecon countries postponed the ‘final reckoning’ of the European and USA rivalries. And yet rivalries have sharpened with the entry of China into the leading echelons of imperialist rivalry. In this period:

i) Germany has benefited the most and now become the leading (if not yet quite hegemonic) partner of the imperialist coalition of the EU.

ii) The EU has expanded enormously to now include the so-called Southern fringe (including Greece, Portugal, Spain, with continuing discussion with Turkey); and the ex-Comecon countries.

iii) There has been a renewed attempt of the Russian bourgeoisie led by Putin to recreate its own imperial zone.

iv) China has dramatically enhanced its imperial might and come to near logger-heads with the neighboring Pacific Oceanic states – in particular those nations most tied to the USA (Japan, Philippines).

v) The most advanced of the former under-developed colonised world (Brazil, India) have been organized by the renewed Chinese imperialists into conglomerates that pose increasing challenges to both the USA and EU hegemony. Namely BRIC (Brazil, Russia, India, China) and the newly created International Bank.

The still unresolved contradiction at the heart of the European Community

Of course the EU has a major problem: Even now, it is not a unitary state with unitary fiscal policies. Although the leaders of the EU wish to concentrate power against the USA, they are unwilling to cede complete national autonomy to a Supra-European force – (namely the European Union based at Brussels). However while EU leaders can attempt to combine the monetary resources, unless there is a complete political unity – there are centrifugal forces they cannot control. For this would require to be overcome, a single unitary Bank.

This is far from a new realisation. The insoluble contradiction was pointed out by astute economists long ago such as Lord Nicholas Kaldor (1908-1986). Kaldor was a Keynesian, who polemicized against both Milton Friedman and Mrs. Thatcher’s worship of monetarism. He cited Keynes to say:

“Keynes (a pamphlet far ahead of the times and ahead of much of his own future writing on the subject), in which he branded monetary policy as ‘simply a campaign against the standard of life of the working classes’, operating through the ‘deliberate intensification of unemployment . . . by using the weapon of economic necessity against individuals and against particular industries — a policy which the country would never permit if it knew what was being done’.

(J. M. Keynes, The Economic Consequences of Mr. Churchill (London, 1925), reprinted in the Collected Writings of John Maynard Keynes Vol. IX (London, 1972), pp. 207-30; Cited Foreword Second edition; Kaldor, N: The Scourge of Monetarism”; Oxford 1986. https://www.questia.com/read/13674203/the-scourge-of-monetarism

In 1971, Kaldor pointed out that in the proposed Eurozone, there would be a tendency for some countries “to acquire increasing (and unwanted surpluses) in their trade with other members, whilst others face increasing deficits”. This could only be overcome he foresaw, by fuller political union:

“The events of the last few years … have demonstrated that the Community is not viable with its present degree of economic integration. The system presupposes full currency convertibility and fixed exchange rates among the members, whilst leaving monetary and fiscal policy to the discretion of the individual member countries. Under this system, as events have shown, some countries will tend to acquire increasing (and unwanted surpluses) in their trade with other members, whist others face increasing deficits. This has two unwelcome effects. It transmits inflationary pressures emanating from some members to other members; and it causes the surplus countries to provide automatic finance on an increasing scale to the deficit countries.

Since exchange-rate adjustments or “floating rates” between members are held to be incompatible with the basic aim of economic integration (and are incompatible also with the present system of common agricultural prices fixed in international units) the governments of the Six, at their Summit meeting in The Hague in December 1969, agreed in principle to the creation of a full economic and monetary union, and appointed a high-level committee (the so-called “Werner Committee”) to work out a concrete programme of action..”

(Nicholas Kaldor On European Political Union Cited by Ramanan, 6 November 2012; in The Case For Concerted Action Post-Keynesian Ideas For A Crisis That Conventional Remedies Cannot Resolve; at http://www.concertedaction.com/2012/11/06/nicholas-kaldor-on-european-political-union/)

Those planning a momentary union explicitly recognised that in the ultimate “third phase” the “individual central beings (being) would be abolished altogether, or reduced to the state of the old colonial “Currency Boards”:

“The realisation of economic and monetary union, as recommended in the Werner Report, involves three kinds of measures, each introduced in stages: monetary union, tax harmonisation, and central community control over national budgets.  It envisages a three-stage programme, with each stage lasting about three years, so that the whole plan is designed to be brought into operation by 1978-80.

In the monetary field in the first stage the interest and credit policy of each central bank is increasingly brought under common Community surveillance and permitted margins of variations between exchange rates are reduced or eliminated. In the second stage exchange rates are made immutable and “autonomous parity adjustments” are totally excluded. In the third stage the individual central banks are abolished altogether, or reduced to the status of the old colonial “Currency Boards” without any credit creating power.”

(Nicholas Kaldor Ibid)

Other political issues would also pose problems including the harmonisation of tax differences and differing budget polices requiring “fiscal standardisation” between countries:

“In the field of tax harmonisation it is envisaged that each country’s system should be increasingly aligned to that of other countries, and that there should be “fiscal standardisation” to permit the complete abolition of fiscal frontiers, which means not only identical forms but also identical rates of taxation, particularly in regard to the value added tax and excise duties.

In the field of budgetary control the Werner Report says “the essential elements of the whole of the public budgets, and in particular variations in their volume, the size of balances and the methods of financing or utilizing them, will be decided at the Community level.”

(Nicholas Kaldor Ibid)

However, ominously for the proponents of a single currency – responsibilities to have individual country Budgets and tax polices set centrally – were not envisaged as necessary. This was according to Kaldor, “the basic contradiction”:

“What is not envisaged is that the main responsibility for public expenditure and taxation should be transferred from the national Governments to the Community. Each member will continue to be responsible for raising the revenue for its own expenditure (apart from the special taxes which are paid to finance the Community’s own budget but which will remain a relatively small proportion of total public expenditure and mainly serve the purposes of the Agriculture Fund and other development aid).

And herein lies the basic contradiction of the whole plan.”

(Nicholas Kaldor Ibid)

Kaldor argued this had to have harsh implications for inequity in the well-being of the peoples of different countries. It was clear that unless “harmonisation” of country provision of benefits paid through by taxation – was ensured, there would be rising inequity:

“For the Community also envisages that the scale of provision of public services (such as the social services) should be “harmonised” – i.e., that each country should provide such benefits on the same scale as the others and be responsible for financing them by taxation raised from its own citizens. This clearly cannot be done with equal rates of taxation unless all Community members are equally prosperous and increase their prosperity at the same rate as the other members. Otherwise the taxation of the less prosperous and/or the slower-growing countries is bound to be higher (or rise faster) than that of the more prosperous (or faster-growing) areas.”

(Nicholas Kaldor Ibid)

In turn, this rising inequity in the poorer countries would likely need to be countered by spiraling taxes, in order to maintain a “fiscal balance” with the remained of “the Community.” But this would then become the source of “vicious circle” as these higher taxes would lead to a further compromise of the less “competitive” countries. Worsening of the inter-country inequity would need for distributing relief funds from the center:

“The Community will control each member country’s fiscal balance – i.e., it will ensure that each country will raise enough in taxation to prevent it from getting into imbalance with other members on account of its fiscal deficit. To ensure this the taxes in the slow growing areas are bound to be increased faster; this in itself will generate a vicious circle, since with rising taxation they become less competitive and fall behind even more, thereby necessitating higher social expenditures (on unemployment benefits, etc.) and more restrictive fiscal policies. A system on these lines would create rapidly growing inequalities between the different countries, and is bound to break down in a relatively short time. …

This is only another way of saying that the objective of a full monetary and economic union is unattainable without a political union; and the latter pre-supposes fiscal integration, and not just fiscal harmonisation. It requires the creation of a Community Government and Parliament which takes over the responsibility for at least the major part of the expenditure now provided by national governments and finances it by taxes raised at uniform rates throughout the Community. With an integrated system of this kind, the prosperous areas automatically subside the poorer areas; and the areas whose exports are declining obtain automatic relief by paying in less, and receiving more, from the central Exchequer. The cumulative tendencies to progress and decline are thus held in check by a “built-in” fiscal stabiliser which makes the “surplus” areas provide automatic fiscal aid to the “deficit” areas.

(Kaldor, Nicholas “On European Political Union Ibid)

Kaldor concluded that the Community’s present plan was like the house which “divided against itself cannot stand” and that “it was “dangerous error: to have a “full economic and monetary union” preceding a political union”:

“The Community’s present plan on the other hand is like the house which “divided against itself cannot stand.” Monetary union and Community control over budgets will prevent a member country from pursuing full employment policies on its own – from taking steps to offset any sharp decline in the level of its production and employment, but without the benefit of a strong Community government which would shield its inhabitants from its worst consequences.

Some day the nations of Europe may be ready to merge their national identities and create a new European Union – the United States of Europe. If and when they do, a European Government will take over all the functions which the Federal government now provides in the U.S., or in Canada or Australia. This will involve the creation of a “full economic and monetary union”. But it is a dangerous error to believe that monetary and economic union can precede a political union or that it will act (in the words of the Werner report) “as a leaven for the evolvement of a political union which in the long run it will in any case be unable to do without”. For if the creation of a monetary union and Community control over national budgets generates pressures which lead to a breakdown of the whole system it will prevent the development of a political union, not promote it.”

(Nicholas Kaldor Ibid)

We believe that the current crisis in Greece, fully confirms these warning. However Kaldor being a representative of the ruling capitalist class in Britain, could hardly envisage a political solution of benefit to the goals of achieving a socialist Europe. It is in this backdrop, that the Greek Crisis plays out.

6. The Greek Economic Crisis 2009-2015 – How did it get to this stage?

Throughout the turn towards Europe, the ruling class of Greece faced the hostility of the Greek working class and the rural small peasants. Nonetheless the ruling class allied itself firmly to the European imperialist bloc of the European Union (Previously the EEC). To recap: the Greek state opened the doors to foreign debt. From the viewpoint of a small capitalist class, who were not about to enter a left policy – there was no alternative. In doing so they also built a bureaucratic state machine, packed with protégés of the states. In addition the overwhelming strength of petit-bourgeois production – combined to allow a nepotistic and corrupt state. In this period, the Greek capitalist economy did not do very well.

In reality profits for the leading elite of the Greek capitalist class were immense. While the international financial capitalists are a giant leech on the back of the people, the main enemy of working people, remains the Greek capitalist class.

A common complaint from European bankers is that the Greek people are lazy and inherently corrupt. This propaganda has found resonance in otherwise progressive and people – who are themselves hard-pressed by capital. It is therefore important to refute the slander on “the lazy Greek people” – and attach the charge of laziness and parasitism to where it belongs – to the ruling capitalist class of Greece. The propaganda often cites the “lax tax laws” and the ‘pampered pension clauses’. Let us examine these aspects first.

i) Tax and Pensions in Greece

The capitalist class structured the tax system to its advantage, and also enabled the petit-bourgeois:

“Greek taxation is a mess (there are six different bands and the wealthiest band of shipping is often referred to as a “tax-free zone”) and over 133 separate pension funds.” Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html

“Data from one of Greece’s ten largest banks, (allowed) economists Nikolaos Artavanis, Adair Morse and Margarita Tsoutsoura..to (estimate lost tax revenue)…. The economists’ conservatively estimate that in 2009 some €28 billion in income went unreported. Taxed at 40%, that equates to €11.2 billion — nearly a third of Greece’s budget deficit.
Why hasn’t Greece done more to stop tax evasion? The economists were also able to identify the top tax-evading occupations — doctors and engineers ranked highest — and found they were heavily represented in Parliament”.

“Greeks Hide Tens of Billions From Tax Man”; Wall St Journal 9 July 2012.

http://blogs.wsj.com/economics/2012/07/09/greeks-hide-tens-of-billions-from-tax-man/?mod=WSJBlog&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Feconomics%2Ffeed+%28WSJ.com%3A+Real+Time+Economics+Blog%29

The scandal of refusal to take action on the “Lagarde List”, makes the responsibility of the Greek ruling class for the “tax imbroglio” even more clear:

“The Greek government has not completed an investigation of a list of 1,991 persons purported to hold accounts with Swiss bank HSBC that it received in 2010 from former French finance minister Christine Lagarde. Initially, officials claimed at various times to have lost or misplaced the information. On 29 October 2012 the government changed its position saying it would not use stolen information to prosecute suspected offenders. Instead, Greek authorities arrested Kostas Vaxevanis, journalist and editor of the weekly magazine Hot Doc, who published the “Lagarde list.”

The list includes an advisor to former Greek prime minister Antonis Samaras, as well as a former minister and a member of Samaras’ New Democracy political party. The list also contains the names of officials in the finance ministry.
Mr. Vaxevanis said he thought the government had not acted on the list because it included friends of ministers, businessmen and powerful publishers.

(https://en.wikipedia.org/wiki/Tax_evasion_and_corruption_in_Greece)

ii) Pensions

First if examined by unadjusted numbers it does appear that the Greek pension system is the most expensive in the OECD countries. We follow the Wall Street Journal analysis of February 2015 (Dalton, Matthew: “Greece’s Pension System Isn’t That Generous After All”; February 27 2015; http://blogs.wsj.com/brussels/2015/02/27/greeces-pension-system-isnt-that-generous-after-all/):

Graphs 1-3 on Pensions In Greece
“First, how much does Greece spend as percentage of GDP on pensions? The data from Eurostat looks like this as of 2012, with Greece expenditure easily highest in the eurozone as a percentage of GDP:

Greece2

However – the Wall Street Journal goes on to break this down, first as a percent of GDP and then by the proportion of pensioners over the age of 65 years:

“But part of that is due to the collapse in GDP suffered by Greece during the crisis… look at pension expenditure as a percentage of potential GDP, the level of economic output were eurozone economies running at full capacity:

Greece3

“Greece is still near the top, though it’s not so far from the eurozone average. Moreover, Greece’s high spending is largely the result of bad demographics: 20% of Greeks are over age 65, one of the highest percentages in the eurozone. What if instead you attempt to adjust for that by looking at pension spending per person over 65 (graph below). Adjusting for the fact that Greece has a lot of older people, its pension spending is below the eurozone average.”

Greece4

And finally a large proportion of the population are pensioners over 65 and many households depend on the pension:

“First, demographics. About 20.5% of Greeks are over 65 – behind only Italy and Germany in the EU when it comes to an ageing population. And with the country’s youth unemployment rate still above 50%, its young people are not going to be able to pay for their grandparents pensions any time soon.

Second, Greek society has a dependency on pensioners. One in two households rely on pensions to make ends meet and the country has an old-age dependancy ratio above 30%, which means that for every 100 people of working age in Greece there are 30 people aged 65 or over.

Third, Greek pensions aren’t so generous. About 45% of pensioners receive pensions below what is considered the poverty limit of €665 per month.
Looking at the actual expenditure on beneficiaries, Greece’s figures don’t stand out as exceptional and are instead on par with the EU average.”

(Nardelli, Alberto: “ Unsustainable futures? The Greek pensions dilemma explained“; Guardian, 15 June 2015; at http://www.theguardian.com/business/2015/jun/15/unsustainable-futures-greece-pensions-dilemma-explained-financial-crisis-default-eurozone)

There is no doubt a large financial burden form the pension schemes – but they provide at an individual level a very modest income:

“What makes the country’s pension system unsustainable is not the specific size of each individual pension, but the overall cost of a grossly inefficient and badly funded system (yes, mainly due to of decades of endemic tax evasion that means as much tax revenue slips through Athens’ fingers as it collects). According to analysis by Macropolis, the average pension in Greece is roughly €700 per month, while the supplementary one is €169.
The same analysis also shows that nearly 90% (€2.07bn) of the total monthly expenditure (€2.35bn) on pensions in March went towards the main pension.
It also reveals that only 0.6% of supplementary pensions were above €500 a month.
For 60% of pensioners the total gross monthly intake is below €800. In addition, many retirees in Greece have already seen their pensions cut. Some by a third, others by nearly 50%.

(Nardelli,; Guardian, 15 June 2015; Ibid)

Moreover, although cutting them might shave off some debt – not only is this unable to repair the basic financial problem of a dependent economy:

“In 2012, pension funds, which were obliged under a law introduced in 1950 by the then king of Greece, Paul I, to keep a minimum of 77% of their assets in government bonds, took an €8.3bn hit following the restructuring of sovereign debt.
Nearly a third of what pension funds have lost since then is due to a fall in contributions on the back of surging unemployment. The unemployment rate is still painfully high (26.6%, while in 2009 it was 9.5%), and nearly eight out of 10 of the country’s jobless have been out of work for 12 months or more.
Any saving brought about by simply purging early retirees’ benefits, cutting supplementary pensions horizontally across the board, or revenue raised by squeezing a drastically depleted pool of taxpayers, would in the short-term allow Greece to unlock the €7bn tranche of bailout funds it needs to carry on servicing its debt (and not default).
However, it would do little to solve the underlying challenges in the longer term.”

(Nardelli,; Guardian, 15 June 2015; Ibid)

Debt and printing money drive Greek Inflation

As discussed in prior sections, the ruling class used inflationary funding to enable it to fool and quieten the working classes. The scale of this is shown below.

“Greece has had a tricky time with its finances. In the 1990s it consistently ran significant budget deficits while using the Drachma. As a result of this economic mismanagement it joined the Euro in 2001, rather than 1999 like many other EU nations.” (Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html)

The following Graph 4, from the ‘Michael Roberts Blog,” tracks the inflation to the deflation tipping point, after the debt crisis became evident:

Greece5

(Roberts M; ‘Greece Cannot Escape”; 2nd Nov 2014: https://thenextrecession.wordpress.com/2014/02/11/greece-cannot-escape/)

However, once it was in the Eurozone, Greece’s government could no longer so easily use inflationary economics to easily boost living standards, as it was bound by the Eurozone and the single currency.

The alternative of devaluing its currency to boost its exports was also not possible. This left only loans. Since it was now the era of financial ‘hot money’ and rampant money-speculation had become standard, this was easy at first, and the inflation graph shows that even the loan-injection money fueled a degree of inflation. But the spigot was soon to be turned off with the Wall Street crash:

“Shortly after joining the single currency, Greece enjoyed a period of growth (2001-2007). However, economist and analysts have retrospectively labeled this boom as “unsustainable,” pointing out that Greece (very broadly speaking) profited off the cheap loans available from the EU. This house of cards came tumbling down with the financial crash of 2008. Like many other countries in the EU Greece was seriously affected, but it was unable to climb out of the hole as it had in the past by printing more currency (thus boosting the economy) as the Euro was controlled by the European Central Bank (ECB). Unemployment spiraled to 28 per cent.”

(Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html)

Greece’s relationship to the EU was as a dependent colony to the leading capitalist countries of the EU. These were of course Germany and also France.
International agencies progressively lent Greek governments large amounts of money. Consequently, Greece progressively developed an external debt of gigantic proportions as seen below in the brown/dark red line (Graph 5):

Greece6

What is the nature of these debt burdens that the Greek government faces?
The German locomotive pushing the EU economy – needed markets. The “under-developed” Southern perimeter of the EU was one of the natural “new” markets:

“Economist Paul Krugman wrote in February 2012:

“What we’re basically looking at…is a balance of payments problem, in which capital flooded south after the creation of the euro, leading to overvaluation in southern Europe.”

He continued in June 2015:

“In truth, this has never been a fiscal crisis at its root; it has always been a balance of payments crisis that manifests itself in part in budget problems, which have then been pushed onto the center of the stage by ideology.”

The translation of trade deficits to budget deficits works through sectoral balances. Greece ran current account (trade) deficits averaging 9.1% GDP from 2000–2011. By definition, a trade deficit requires capital inflow (mainly borrowing) to fund; this is referred to as a capital surplus or foreign financial surplus. This can drive higher levels of government budget deficits, if the private sector maintains relatively even amounts of savings and investment, as the three financial sectors (foreign, government, and private) by definition must balance to zero.
While Greece was running a large foreign financial surplus, it funded this by running a large budget deficit. As the inflow of money stopped during the crisis, reducing the foreign financial surplus, Greece was forced to reduce its budget deficit substantially. Countries facing such a sudden reversal in capital flows typically devalue their currencies to resume the inflow of capital; however, Greece cannot do this, and has suffered significant income (GDP) reduction, another form of devaluation.”

(https://en.wikipedia.org/wiki/Greek_government-debt_crisis#/media/File:HellenicOeconomy(inCurrentEuros).png)

Lord Kaldor’s warnings about this developing were discussed above.

Who owns this debt?

Graph 6: Current account imbalances in the European Union (1997–2014)

The graph below (from Wikipedia at: https://en.wikipedia.org/wiki/File:Current_account_imbalances_EN_(3D).svg)
shows that one of the major owners is Germany. In more detail, the ‘Economist Online” of October 2011 described the major ownership of the Greek debt. The main institutions owning the Greek debt are the IMF, the European Central Bank (ECB) and various European governments:

“Greece has total debts of €346.4bn. About a third of this debt is in public hands (34.8% is attributable to the IMF, ECB and European governments), roughly another third is in Greek hands (28.8%, essentially for banks) with the remainder (36.4%) held by non-Greek private investors.
(http://economistonline.muogao.com/2011/10/who-owns-greek-debt.html)

Greece7

And the New York Times Business news cites similar data:

“Almost two-thirds of Greece’s debt, about 200 billion euros, is owed to the eurozone bailout fund or other eurozone countries. Greece does not have to make any payments on that debt until 2023”. (Editor: Graph 7: below graphically displays the ownership of the debt.)

Greece8

Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

During this period, Greece’s finances were monitored by external agencies, largely those who had loaned monies to Greece. These were the International Monetary Fund (IMF), the European Community (EU) and the European Central Bank (ECB). These formed the so-called Troika. The Troika was to become hated by the Greek peoples as they plunged Greece into major social chaos and forced the living standards of the Greek people down.

As the New York Times comments, in many ways the “crisis” can be considered as a manufactured one as only a portion of debt is coming due in the short term:

“The International Monetary Fund has proposed extending the grace period until mid-century. So while Greece’s total debt is big—as much as double the country’s annual economic output—it might not matter much if the government did not need to make payments for decades to come. By the time the money came due, the Greek economy could have grown enough that the sum no longer seemed daunting.
In the short term, though, Greece has a problem making payments due on loans from the International Monetary Fund and on bonds held by the European Central Bank. Those obligations amount to more than 24 billion euros through the middle of 2018, and it is unlikely that either institution would agree to long delays in repayment.”
Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Two additional problems have conspired to make the “original sin” of debt – of even more enormous consequence.
Firstly, quite early on during this crisis, it was clear to the Troika lenders that the Greek government was in trouble in repaying any significant fraction of this debt. However this was ignored. In fact the IMF – despite its own rules and despite the worries about “default” – continued to fuel the fire of debt by giving more loans.

Then secondly, to worsen matters, the Greek government falsified data about the extent of its debt, and was helped by the greed of USA banking capital.

As early as 2004, in its negotiations with the EU, the ruling class of Greece falsified the degree of its debt. Goldman Sachs – the giant stockbroker and trader bank of Wall Street, aided the Greek government in doing this:

“In 2001, Greece was looking for ways to disguise its mounting financial troubles. The Maastricht Treaty required all Eurozone member states to show improvement in their public finances, but Greece was heading in the wrong direction. Then Goldman Sachs came to the rescue, arranging a secret loan of 2.8 billion euros for Greece, disguised as an off-the-books “cross-currency swap”—a complicated transaction in which Greece’s foreign-currency debt was converted into a domestic-currency obligation using a fictitious market exchange rate.

As a result, about 2 percent of Greece’s debt magically disappeared from its national accounts. Christoforos Sardelis, then head of Greece’s Public Debt Management Agency, later described the deal to Bloomberg Business as “a very sexy story between two sinners.” For its services, Goldman received a whopping 600 million euros ($793 million), according to Spyros Papanicolaou, who took over from Sardelis in 2005. That came to about 12 percent of Goldman’s revenue from its giant trading and principal-investments unit in 2001—which posted record sales that year. The unit was run by Blankfein.

Then the deal turned sour. After the 9/11 attacks, bond yields plunged, resulting in a big loss for Greece because of the formula Goldman had used to compute the country’s debt repayments under the swap. By 2005, Greece owed almost double what it had put into the deal, pushing its off-the-books debt from 2.8 billion euros to 5.1 billion. In 2005, the deal was restructured and that 5.1 billion euros in debt locked in. Perhaps not incidentally, Mario Draghi, now head of the European Central Bank and a major player in the current Greek drama, was then managing director of Goldman’s international division.”

(Robert B. Reich ‘How Goldman Sachs Profited From the Greek Debt Crisis”; The Nation16th July 2015; http://www.thenation.com/article/goldmans-greek-gambit/)

Such was the pervasive greed, that of course such ‘creative’ financing’ was standard, as explained by Robert Reich:

“Greece wasn’t the only sinner. Until 2008, European Union accounting rules allowed member nations to manage their debt with so-called off-market rates in swaps, pushed by Goldman and other Wall Street banks. In the late 1990s, J.P.Morgan enabled Italy to hide its debt by swapping currency at a favorable exchange rate, thereby committing Italy to future payments that didn’t appear on its national accounts as future liabilities. But Greece was in the worst shape, and Goldman was the biggest enabler. Undoubtedly, Greece suffers from years of corruption and tax avoidance by its wealthy. But Goldman wasn’t an innocent bystander: It padded its profits by leveraging Greece to the hilt—along with much of the rest of the global economy. Other Wall Street banks did the same. When the bubble burst, all that leveraging pulled the world economy to its knees.”

(Robert B. Reich ‘How Goldman Sachs Profited From the Greek Debt Crisis”; The Nation16th July 2015; http://www.thenation.com/article/goldmans-greek-gambit/)

Of course such greed driven lying enabled the Greek Government to gain more loans. This was of itself a problem since the country was developing intractable recession.

The Crisis heats up and the infamous Troika Memorandum

By 2009, significant fears that Greece would default on its loans prompted alarm. The Troika made moves to yet another loan – this time of $110 billion – but only if there were significant “austerity measures.” Of course this was intended to be an “austerity” for the working classes and not for the ruling classes:

“From late 2009, fears of a sovereign debt crisis developed among investors concerning Greece’s ability to meet its debt obligations due to strong increase in government debt levels. This led to a crisis of confidence, indicated by a widening of bond yield spreads and risk insurance on credit default swaps compared to other countries, most importantly Germany. Downgrading of Greek government debt to junk bonds created alarm in financial markets.

“On 2 May 2010, the Eurozone countries and the International Monetary Fund agreed on a €110 billion loan for Greece, conditional on the implementation of harsh austerity measures. In October 2011, Eurozone leaders also agreed on a proposal to write off 50% of Greek debt owed to private creditors, increasing the EFSF to about €1 trillion and requiring European banks to achieve 9% capitalization to reduce the risk of contagion to other countries. These austerity measures have proved extremely unpopular with the Greek public, precipitating demonstrations and civil unrest.”

(https://en.wikipedia.org/wiki/Greek_government-debt_crisis#/media/File:HellenicOeconomy(inCurrentEuros).png)

It was the collapse of the international financial and banking industries from the USA sub-prime crisis which rapidly became an international financial crisis, that mushroomed the Greek situation into a crisis. Greece had no choice but to reveal a truer picture of its deficit financing to the world’s creditors to seek more credit:

“Greece became the epicenter of Europe’s debt crisis after Wall Street imploded in 2008. With global financial markets still reeling, Greece announced in October 2009 that it had been understating its deficit figures for years, raising alarms about the soundness of Greek finances. Suddenly, Greece was shut out from borrowing in the financial markets. By the spring of 2010, it was veering toward bankruptcy, which threatened to set off a new financial crisis.”

“Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Up to around 2011, the loan monies in Greece continued to drive an inflation.
But then a sharp deflation began, as the Troika turned the screw on Greece. The Troika insisted on marked cuts in the living standards of the Greek people the working lass and peasantry. Not the standard of the ruling class of course who has moved its savings out of reach of the Greek state or the Troika. The Troika’s conditions are noted here:

“The so-called troika — the International Monetary Fund, the European Central Bank and the European Commission — issued the first of two international bailouts for Greece, which would eventually total more than 240 billion euros, or about $264 billion at today’s exchange rates. The bailouts came with conditions. Lenders imposed harsh austerity terms, requiring deep budget cuts and steep tax increases. They also required Greece to overhaul its economy by streamlining the government, ending tax evasion and making Greece an easier place to do business.”

“Greece’s debt crisis explained” – International Business; New York Times updated July 27, 2015 http://www.nytimes.com/interactive/2015/business/international/greece-debt-crisis-euro.html?_r=0

Of course the Greek capitalists complied, and drove down and depressed the wage rates of the Greek people:

“It’s true that the crushing of the living standards and wage earnings of Greek households is making Greek industry more ‘competitive’ – labour costs per unit of (falling) production have dropped 30% since 2010 (See Graph 8 below).

Greece9

((Roberts M; ‘Greece Cannot Escape”; 2nd Nov 2014: https://thenextrecession.wordpress.com/2014/02/11/greece-cannot-escape/)

Again – the burden of ‘austerity’ – was laid only on the working class of Greece:

“When Greece did cut some of its spending, the EU and ECB asked for a reduction in wages rather than a cut in spending. So – for example – while the military budget remains intact, soldiers have seen their wages fall by 40 per cent. Their experience is replicated across other public sector fields – notably in nurses and doctors”. Buchanan, Rose T; “Greece debt crisis explained: A history of just how the country landed itself in such a mess”; The Independent 4 July 2015; http://www.independent.co.uk/news/world/europe/greece-debt-crisis-explainer-a-history-of-how-the-country-landed-itself-in-such-a-mess-10365798.html

An external – German – research agency found that indeed, it was the poor that had suffered disproportionate cuts as compared to the rich:

“The poorest households in the debt-ridden country lost nearly 86% of their income, while the richest lost only 17-20%.  The tax burden on the poor increased by 337% while the burden on upper-income classes increased by only 9% This is the result of a study that has analyzed 260.000 tax and income data from the years 2008 – 2012.
– The nominal gross income of Greek households decreased by almost a quarter in only four years.
– The wages cuts caused nearly half of the decline.
– The net income fell further by almost 9 percent, because the tax burden was significantly increased
–  While all social classes suffered income losses due to cuts, tax increases and the economic crisis, particularly strongly affected were households of low- and middle-income. This was due to sharp increase in unemployment and tax increases, that were partially regressive.
– The total number of employees in the private sector suffered significantly greater loss of income, and they were more likely to be unemployed than those employed in the public sector.
-From 2009 to 2013 wages and salaries in the private sector declined in several stages at around 19 percent. Among other things, because the minimum wage was lowered and collective bargaining structures were weakened. Employees in the public sector lost around a quarter of their income.

Unemployment & Early Retirement
Unemployment surged from 7.3% in the Q2 2008 to 26.6% in the Q2 2014. among youth aged 15-24, unemployment had an average of 44%.
Early retirement in the Private Sector increased by 14%.
Early retirement in the Public Sector* increased by 48%
The researchers see here a clear link to the austerity policy, that’s is the Greek government managed to fulfill the Troika requirements for smaller public sector. However, this trend caused a burden to the social security funds.
* Much to KTG’s knowledge public servants with 25 years in the public administration rushed to early retirement in 2010 out of fear of further cuts in their wages and consequently to their pension rights.

Taxes
Taxes were greatly increased, but they had a regressive effect.
Since beginning of the austerity, direct taxes increased by nearly 53%, while indirect taxes increased by 22 percent.
The taxation policy has indeed contributed significantly to the consolidation of the public budget, but by doing so the social imbalance was magnified.

Little has been done against tax avoidance and tax evasion, however, the tax base was actually extended “downwards” with the effect that households with low-income and assets were strongly burdened.
Particularly poorer households paid disproportionately more in taxes and the tax burden to lower-income rose by 337%. In comparison, the tax burden to upper-income households rose by only 9%.
In absolute euro amounts, the annual tax burden of many poorer households increased “only” by a few hundred euros. However, with regards to the rapidly declining of incomes and rampant unemployment, this social class was over-burdened with taxes.

The Poor suffered more
On average, the annual income of Greek households before taxes fell from €23,100 euros in 2008 to just below €17,900 euros in 2012. This represents a loss of nearly 23 percent.
The losses were significantly different to each income class with the poorest households to have suffered the biggest losses.
Almost one in three Greek household had to make it through 2012 with an annual income below €7,000”.
(Research of the “German Institute for Macroeconomic Research (IMK) affiliated with the Hans Böckler Foundation”; given blog ‘Keep Talking Greece’; by 20 March 2015; at http://www.keeptalkinggreece.com/2015/03/20/shocking-austerity-greeces-poor-lost-86-of-income-but-rich-only-17-20/

Both the Greek ruling class and the Troika saw that this squeeze on the poor and working class, was creating such a social upheaval, as to be potentially pre-revolutionary. Yet they were caught, since the alternatives were dismal for the international capitalist. Even the IMF’s own rules were flouted. In 2010 the situation was as follows in Michael Roberts telling:

“The irony is that while austerity in Greece continues to be applied mercilessly, the IMF recently issued a report that concluded that the Troika’s approach was mistaken in imposing severe fiscal retrenchment back in May 2010 when Greece could no longer finance its spending through borrowing in bond markets (http://www.imf.org/external/pubs/ft/scr/2013/cr13156.pdf).

Back then, the Troika had three options. First, it could have provided a massive fiscal transfer to the Greek government to tide it over without demanding massive cuts in public spending that eventually led to a fall in Greek real GDP of nearly 20%, unemployment of over 25% and government debt to GDP of 170%, with economic depression likely to continue out to the end of the decade.  Or it could have allowed the Greek government to ‘default’ on its debts to the banks, pension funds and hedge funds and negotiate an ‘orderly haircut’ on those debts.  But the Troika did neither and opted instead for a third way.  It insisted that in return for bailout funds the Greek government meet its obligations in full to all its creditors by switching all its available revenues to paying its debts at the expense of jobs, health, education and other public services.

The Troika insisted on this because it reckoned 1) that austerity would be shortlived and economic growth would quickly return and 2) if the banks and others took a huge hit on their balance sheets from a Greek default it would put European banks in danger of going bust (Greek banks first).  There could be ‘contagion’ if other distressed Eurozone governments also opted not to pay their debts, using Greece as the precedent.  Of course, economic growth has not returned and despite huge efforts on the part of Greek governments to meet fiscal targets through unprecedented austerity, government debt has increased rather than fallen and the economy has nosedived.

Eventually, the Troika had to agree that the private sector took a ‘haircut’ after all, massaged as it was with cash sweeteners and new bonds with high yields.  Now the IMF in its report admits that austerity was too severe and debt ‘restructuring’ should have happened from the beginning.  The IMF, now in its semi-Keynesian mode, tries to put the blame for the failure to do this on the EU leaders and the ECB, which has not made the latter too happy, especially as the current IMF chief, Lagarde was strongly in favour of the austerity plan when she was French finance minister in 2010.

“If Greeks had defaulted back in 2010, that could have led to other defaults and Europe’s banks were in no state to absorb such losses.  As a recent study shows http://www.voxeu.org/article/ez-banking-union-sovereign-virus), German banks were heavily overleveraged back in 2010 and they are not much better even now.  There was no way the German government was going to put German banks in jeopardy and allow the ‘profligate’ Greeks to get a huge handout of German taxpayers money to boot.  No, the Greeks had to pay their debts, just as the Germans had to pay their reparations to the French after 1918, even if it meant Germany was plunged into permanent depression.  Ironically, the Germans did not and have not paid promised billions in reparations to the Greeks after 1945 – something the Greeks are pursuing in negotiations!”

(Michael Roberts Blog: “Greece, the IMF and debt default; 16th June 2013;“https://thenextrecession.wordpress.com/2013/06/16/greece-the-imf-and-debt-default/)

As noted before, this fueling of the debt by new loans, was against even the principles of the International Monetary Fund (IMF), and senior strategists in the IMF warned that the polices of the IMF in regards to Greece were seriously in error, from the year 2010.

As stated above, one underlying reason on insisting that the Greek Government paid its debt fully, was simply the usurer’s wish to ensure that debts owed by Greece to both France and Germany would be honoured. German and French banks had become vulnerable by over-leveraging themselves. (i.e they had loaned so much money that their actual capital holdings were unable to support them if there was a “run” on their deposits). The Eurozone banks had become very vulnerable:

“The Table below shows the degree of ‘domestic leverage’ of the systemically important banks in major Eurozone countries .. in most countries the domestic banking system would not survive a Greek-style ‘haircut’ on public debt. (In March 2012, holders of Greek bonds had to accept a nominal haircut of over 50%, and on a mark-to-market basis the haircut was over 80%. It is apparent that no bank that has a sovereign exposure worth over 100% of its capital would survive such a loss).

Table 4: Domestic sovereign debt leverage (sovereign exposure/capital)

Greece Table

Source: CEPS database. (From Roberts 16 June 2013; “Greece, the IMF and debt default ibid) Michael Roberts Blog: “Greece, the IMF and debt default; 16th June 2013; https://thenextrecession.wordpress.com/2013/06/16/greece-the-imf-and-debt-default/)

Amazingly, the IMF policy remained unchanged – new loans were issued to Greece – at least up till May 2015:

“Greece’s onerous obligations to the IMF, the European Central Bank and European governments can be traced back to April 2010, when they made a fateful mistake. Instead of allowing Greece to default on its insurmountable debts to private creditors, they chose to lend it the money to pay in full.
At the time, many called for immediately restructuring privately held debt, thus imposing losses on the banks and investors who had lent money to Greece. Among them were several members of the IMF’s board and Karl Otto Pohl, a former president of the Bundesbank and a key architect of the euro. The IMF and European authorities responded that restructuring would cause global financial mayhem. As Pohl candidly noted, that was merely a cover for bailing out German and French banks, which had been among the largest enablers of Greek profligacy.

Ultimately, the authorities’ approach merely replaced one problem with another: IMF and official European loans were used to repay private creditors. Thus, despite a belated restructuring in 2012, Greece’s obligations remain unbearable — only now they are owed almost entirely to official creditors.

Five years after the crisis started, government debt has jumped from 130 percent of gross domestic product to almost 180 percent. Meanwhile, a deep economic slump and deflation have severely impaired the government’s ability to repay.
Almost everyone now agrees that pushing Greece to pay its private creditors was a bad idea. The required fiscal austerity was simply too great, causing the economy to collapse. The IMF acknowledged the error in a 2013 report on Greece. In a recent staff paper, the fund said that when a crisis threatens to spread, it should seek a collective global solution rather than forcing the distressed economy to bear the entire burden. The IMF’s chief economist, Olivier Blanchard, has warned that more austerity will crush growth.

Oddly, the IMF’s proposed way forward for Greece remains unchanged: Borrow more money (this time from the European authorities) to repay one group of creditors (the IMF) and stay focused on austerity. The fund’s latest projections assume that the government’s budget surplus (other than interest payments) will reach 4.5 percent of GDP, a level of belt-tightening that few governments have ever sustained for any significant period of time.

Following Germany’s lead, IMF officials have placed their faith in so-called structural reforms — changes in labor and other markets that are supposed to improve the Greek economy’s longer-term growth potential. They should know better. The fund’s latest World Economic Outlook throws cold water on the notion that such reforms will address the Greek debt problem in a reliable and timely manner. The most valuable measures encourage research and development and help spur high-technology sectors. All this is to the good, but such gains are irrelevant for the next five years. The priority must be to prevent Greece from sinking deeper into a debt-deflation spiral. Unfortunately, some reforms will actually accelerate the spiral by weakening demand.

On April 9, Greece repaid 450 million euros ($480 million) to the IMF, and must pay another 2 billion in May and June. The IMF’s managing director, Christine Lagarde, has made clear that delays in repayments will not be tolerated.

“I would, certainly for myself, not support it,” she told Bloomberg Television.”

Ashoka Mody; Bloomberg 81 April 21 2015; The IMF’s Big Greek Mistake; http://www.bloombergview.com/articles/2015-04-21/imf-needs-to-correct-its-big-greek-bailout-mistake

Recall – Lagarde was once the Minister of Finance for France:

Graph number 5 (see above) displays that it is not only Greece in
hock” to Germany, but there are several leading Eurozone states in debt to Germany. In especial note the deficits of France and of Italy.

This is the second reason – at least for German imperialism – on insisting that the Greek Government paid its debt fully.
If the Greeks are allowed to default, what happens to the other loans that are outstanding? It has long been recognised that Germany has been running a huge trade surplus, and it has been under pressure to alleviate this for some time:

“For years, Germany has been running a large current account surplus, meaning that it sells a lot more than it buys. The gap has only grown since the start of the crisis, reaching a new record of 215.3 billion euros ($244 billion) in 2014. Such insufficient German demand weakens world growth, which is why the U.S. Treasury and the International Monetary Fund have long prodded the country to buy more. Even the European Commission has concluded that Germany’s current-account imbalance is “excessive.”

(Ashoka Mody, Bloomberg188 July 17, 2015, ‘Germany, Not Greece, Should Exit the Euro’)

Any lifting of the restrictions upon Greece will lead to repercussions as to what happens to the debts of these other leading countries. It is no doubt, for this reason, that both Italy and France have been trying to ease pressures from Germany, arguing that there must be a debt restructuring.

This fits with the later 2015 U-Turn of Cristine Lagarde and the IMF (Discussed in section 9 below) – who are now at the last moment – urging the German government to reduce the obligations of the Greek government of Tsipras. We believe also, that this U-Turn supports the USA wish to attack the German government’s current rising economic strength.

Moreover, the USA government itself – suffers from an astronomical debt.

7. The Marxist View of ‘National Debt’ under capitalism

What do Marxists and other informed economists make of the notion of a national Debt? Falling into debt of a country – or large institutions – has been a historical feature of the growth of capital. Karl Marx pointed this out in ‘Capital’, saying that the “only part of the so-called national wealth that actually enters the possession of modern people is their national debt.” In full:

“The system of public credit, i.e., of national debts, whose origin we discover in Genoa and Venice as early as the Middle Ages, took possession of Europe generally during the manufacturing period. The colonial system with its maritime trade and commercial wars served as a forcing-house for it. … National debts, i.e., the alienation of the state – whether despotic, constitutional or republican – marked with its stamp the capitalistic era. The only part of the so-called national wealth that actually enters into the collective possessions of modern peoples is their national debt. Hence, as a necessary consequence, the modern doctrine that a nation becomes the richer the more deeply it is in debt. Public credit becomes the credo of capital. And with the rise of national debt-making, want of faith in the national debt takes the place of the blasphemy against the Holy Ghost, which may not be forgiven.

The public debt becomes one of the most powerful levers of primitive accumulation. As with the stroke of an enchanter’s wand, it endows barren money with the power of breeding and thus turns it into capital, without the necessity of its exposing itself to the troubles and risks inseparable from its employment in industry or even in usury. The state creditors actually give nothing away, for the sum lent is transformed into public bonds, easily negotiable, which go on functioning in their hands just as so much hard cash would. But further, apart from the class of lazy annuitants thus created, and from the improvised wealth of the financiers, middlemen between the government and the nation – as also apart from the tax-farmers, merchants, private manufacturers, to whom a good part of every national loan renders the service of a capital fallen from heaven – the national debt has given rise to joint-stock companies, to dealings in negotiable effects of all kinds, and to agiotage, in a word to stock-exchange gambling and the modern bankocracy.

At their birth the great banks, decorated with national titles, were only associations of private speculators, who placed themselves by the side of governments, and, thanks to the privileges they received, were in a position to advance money to the State. Hence the accumulation of the national debt has no more infallible measure than the successive rise in the stock of these banks, whose full development dates from the founding of the Bank of England in 1694. The Bank of England began with lending its money to the Government at 8%; at the same time it was empowered by Parliament to coin money out of the same capital, by lending it again to the public in the form of banknotes. It was allowed to use these notes for discounting bills, making advances on commodities, and for buying the precious metals. It was not long ere this credit-money, made by the bank itself, became. The coin in which the Bank of England made its loans to the State, and paid, on account of the State, the interest on the public debt. It was not enough that the bank gave with one hand and took back more with the other; it remained, even whilst receiving, the eternal creditor of the nation down to the last shilling advanced. Gradually it became inevitably the receptacle of the metallic hoard of the country, and the centre of gravity of all commercial credit. What effect was produced on their contemporaries by the sudden uprising of this brood of bankocrats, financiers, rentiers, brokers, stock-jobbers, &c., is proved by the writings of that time, e.g., by Bolingbroke’s”

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

Not only is “National Debt” crucial for the capitalist, but it was coincident with the ‘credit system’, and this in turn was associated with an international trade of capital (i.e. money) and systems of “modern taxation”:

“With the national debt arose an international credit system, which often conceals one of the sources of primitive accumulation in this or that people. Thus the villainies of the Venetian thieving system formed one of the secret bases of the capital-wealth of Holland to whom Venice in her decadence lent large sums of money. So also was it with Holland and England. By the beginning of the 18th century the Dutch manufactures were far outstripped. Holland had ceased to be the nation preponderant in commerce and industry. One of its main lines of business, therefore, from 1701-1776, is the lending out of enormous amounts of capital, especially to its great rival England. The same thing is going on today between England and the United States. A great deal of capital, which appears today in the United States without any certificate of birth, was yesterday, in England, the capitalised blood of children.”

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

Moreover, Marx points out that governments want loans for “extraordinary expenses”. This is because they do not want to tax the people too heavily lest it anger them. But eventually these loans will need an increase in taxes to pay the loan off. Then a vicious circle begins, where even more loans are needed to off-set the higher taxation burden:

“As the national debt finds its support in the public revenue, which must cover the yearly payments for interest, &c., the modern system of taxation was the necessary complement of the system of national loans. The loans enable the government to meet extraordinary expenses, without the tax-payers feeling it immediately, but they necessitate, as a consequence, increased taxes. On the other hand, the raising of taxation caused by the accumulation of debts contracted one after another, compels the government always to have recourse to new loans for new extraordinary expenses. Modern fiscality, whose pivot is formed by taxes on the most necessary means of subsistence (thereby increasing their price), thus contains within itself the germ of automatic progression. Overtaxation is not an incident, but rather a principle. In Holland, therefore, where this system was first inaugurated, the great patriot, DeWitt, has in his “Maxims” extolled it as the best system for making the wage labourer submissive, frugal, industrious, and overburdened with labour. The destructive influence that it exercises on the condition of the wage labourer concerns us less however, here, than the forcible expropriation, resulting from it, of peasants, artisans, and in a word, all elements of the lower middle class. On this there are not two opinions, even among the bourgeois economists. Its expropriating efficacy is still further heightened by the system of protection, which forms one of its integral parts.

(Marx, Karl: Capital Volume One Chapter Thirty-One: Genesis of the Industrial Capitalist; at: https://www.marxists.org/archive/marx/works/1867-c1/ch31.htm)

What were these “extraordinary expenditures” the state wished to fund? Even bourgeois economists recognise that wars were one key such expenditures:

“The Bank of England was created… explicitly,, to finance wars, in its case the Nine Years War with France which started in 1688……The Bank of France .. having been started with that name in 1800 specifically to satisfy Napoleon’s wartime financial needs”. (Dean and Pringle Ibid; ‘Central banks”; pp38; p. 42).

Modern bourgeois economists have of course long supported the principle of national debts. Maynard Keynes recognised the utility of deficit financing for the capitalist control of the state, as he stated:

“’Loan expenditure.. may .. enrich the community on balance”; ref 31: (Cited Van Der Pijl, K. ‘The making of an Atlantic ruling class”; p.17; London 2012).

While we cannot dwell further on the subject in this article, the amount of the USA current debt is astonishingly large. So there is nothing reprehensible about the Greek Debt per se. What is at issue is an international lack of confidence that the Greek state would be able to pay it back. There is no underlying manufacturing or trading base to support the debt, and will not be. Unless – a complete break with the past – is offered. However thus far, a meaningful solution has never been on offer by the Greek or international merchants of capital, to the Greek working people.

8. The Debt Crisis leads to an increasing struggle of the growing Greek working class and gives rise to the United Front of Syriza – the political parties of the left

By the time of the current era in 2000-2015, the Greek social and class structure had changed dramatically. Despite the absence of a major manufacturing sector, unemployment was rising, and the urban-rural divide was widening – even before the austerity moves of the Troika:

“Greece is still low on competitiveness and this undermines self-sustaining growth, with low employment rates, low R&D, high levels of poverty, especially in rural and remote areas. The Greek economy grew by 0.7 per cent in the 1980s, compared with 2.4 per cent in other EU states. Demographically, the number of over 65-year-olds, set to increase by 30 per cent between 2010 and 2050, with fewer people in employment, will create a massive dependency on social security and health care. Greece has the largest agricultural population in the EU, with a low capacity to attract foreign direct investment (FDI). The collapse of the Soviet Union and opening of markets in the Balkans means that many investors have relocated their activities in neighbouring countries.

Since 2004 there has been a drop in most manufacturing output (textiles, leather goods, paper, office equipment, furniture), steadily constant production of food, beverages, oil, with the only growth in tobacco, chemicals and plastic goods. Therefore, long-term stagnation in manufacturing has led the state to adopt ‘rescue’ interventions or public loans. Shipping and tourism contributes 17 per cent to gross domestic product (GDP) and employs 18 per cent of the working population. The uneven rural/urban divide is particularly acute as some areas, notably the islands and the farming communities, benefited more from Euro-funds for tourism or agridevelopment than others. Athens, in particular has had massive infrastructure developed.”

(Liddle, Joyce. “Regeneration and Economic Development in Greece:
De-industrialisation and Uneven Development “p.340; Local Government Studies; Vol. 35, No. 3, 335–354, June 2009)

Nonetheless, the weight of the working class had risen between 1991 and 2011, as had a class polarisation:

“Based on the Greek Statistic Service data for the fourth trimester of 2011 in comparison to those of 1991 consists in
1. an increase of the bourgeois class (3.4% from 1.4%) and of the rich rural strata (0.6% from 0.3%),
2. a huge decline of the traditional petit-bourgeois class (15.2% from 13.2%), and of the middle rural strata (2.2% from 3%),
3. a small increase of the new petit-bourgeois class (15.2% from 13.2%), due to the increasing demand of their abilities for the achievement of capital profitability, in parallel to an effort of their submission to the most direct capital exploitation and domination,
4. An important increase of the working class (62.2% from 47.5%), and
an important decrease of the poor rural strata (6% from 47.5%).
*In any case, what is clear is the tendency of intensification of class polarisation, which leads to the adoption of a social structure akin to that of other European countries (small number of farmers and of the traditional petit-bourgeois class, stable presence of the new petit-bourgeois class as the executive organizer of the productive process, broader bourgeoisie and heterogeneous uneven but
numerous working class”.

(Eirini Gaitanou. An examination of class structure in Greece, its tendencies of transformation amid the crisis, and its impacts on the organisational forms and structures of the social movement. At: http://www.academia.edu/9400998/An_examination_of_class_structure_in_Greece_its_tendencies_of_transformation_amid_the_crisis_and_its_impacts_on_the_organisational_forms_and_structures_of_the_social_movement).

Under these enormous burdens, the now sizeable working classes of Greece mounted serious struggles to resist “austerity.” The ruling classes struggled to implement their commitments to the EU and the IMF. Consequently a series of short lived coalition governments took power.

“Following the May 2012 legislative election where the New Democracy party became the largest party in the Hellenic Parliament, Samaras, leader of ND, was asked by Greek President Karolos Papoulias to try to form a government. However, after a day of hard negotiations with the other parties in Parliament, Samaras officially announced he was giving up the mandate to form a government. The task passed to Alexis Tsipras, leader of the SYRIZA (the second largest party) who was also unable to form a government. After PASOK also failed to negotiate a successful agreement to form a government, emergency talks with the President ended with a new election being called while Panagiotis Pikrammenos was appointed as Prime Minister in a caretaker government.
Voters once again took to the polls in the widely-watched June 2012 election. New Democracy came out on top in a stronger position with 129 seats, compared to 108 in the May election. On 20 June 2012, Samaras successfully formed a coalition with PASOK (now lead by former Finance Minister Evangelos Venizelos) and DIMAR. The new government would have a majority of 58, with SYRIZA, Independent Greeks (ANEL), Golden Dawn (XA) and the Communist Party (KKE) comprising the opposition. PASOK and DIMAR chose to take a limited role in Samaras’ Cabinet, being represented by party officials and independent technocrats instead of MPs.”

(https://en.wikipedia.org/wiki/Antonis_Samaras)

We discuss these parties below. The coalition government led by Samaras, proved to be another short lived and contentious government, as it toed the line of Troika conditions. As such it was unable to disguise its nature from the increasingly militant and impoverished working class of Greece.

By the time of the January 2015 elections, the situation had become even more parlous for Greece’s working people:

“Greece saw official unemployment rising up to 27% – and youth unemployment up to 50% – suffered a cumulative contraction of almost 25%, saw a massive reduction in wages and pensions, and witnessed the passage of massive legislation oriented towards privatizations, labor market liberalization, and neoliberal university reform.”

(Panagiotis Sotiris; https://viewpointmag.com/2015/01/28/a-strategy-of-ruptures-ten-theses-on-the-greek-future/)

A more credible “left” bulwark against the masses was necessary for the Greek ruling class. This coincided with a reformation of the Greek left. At this point we must discuss Syriza in more detail.

As seen, PASOK had fallen into rank opportunism and open betrayal of the working class. After ensuing scandals of corruption implicated the leader, Andreas Papandreou, its appeal to the workers and poor of Greece was falling fast:

“The socialist Prime Minister Andreas Papandreou and his key associates were under accusation of scandal, which involved party funding from illicit sources and revealed the extensive clientelistic linkages between business interests and politics which had been built up under PASOK’s eight-year rule.”

(Tsakatika, Myrto and Eleftheriou, Costas: “The Radical Left’s Turn towards Civil Society in Greece: One Strategy, Two Paths”; South European Society and Politics, 2013; p.3; http://dx.doi.org/10.1080/13608746.2012.757455)

The space on the left had opened up again. Who was there to fill it?
We reprise the main outlines of events, focusing on analyses by Syriza, the revisionist KKE, and the pro-Hoxha Anasintaxi.

After the destruction of many of its cadre after the Battle of Athens in 1949, the KKE slowly reformed, after having adopted some mistaken sectarian paths during the Second World War. The KKE went through several splits, summarized below:

“There have been a series of splits throughout the party’s history, the earliest one being the Trotskyist Organisation of Internationalist Communists of Greece.
In 1956, after the 20th Congress of the Communist Party of the USSR….
a faction created the Group of Marxist-Leninists of Greece (OMLE), which split from party in 1964, becoming the Organisation of Marxists-Leninists of Greece. In 1968, amidst the Greek military junta of 1967–1974 and the Soviet invasion of Czechoslovakia, a relatively big group split from KKE, forming KKE Interior, a Greek Nationalist Communist Party claiming to be directed from within Greece rather than from the Soviet Union.
In 1988 KKE and Greek Left (the former KKE Interior), along with other left parties and organisations, formed the Coalition of the Left and Progress.
Also in 1988, the vast majority of members and officials from Communist Youth of Greece (KNE), the KKE’s youth wing, split to form the New Left Current (NAR), drawing mainly youth in major cities, especially in Thessaloniki.
In the early 2000s, a small group of major party officials such as Mitsos Kostopoulos left the party and formed the Movement for the United in Action Left (KEDA), which in the 2007 legislative election participated in the Coalition of the Radical Left, which was to win the 2015 national elections with a plurality.”

(https://en.wikipedia.org/wiki/Communist_Party_of_Greece) and also see Tsakatika, Myrto and Eleftheriou, Costas: “The Radical Left’s Turn towards Civil Society in Greece: One Strategy, Two Paths”; South European Society and Politics, 2013; p.3; http://dx.doi.org/10.1080/13608746.2012.757455)

The Marxist Leninist party supporting Hoxha in Greece is ‘Αναρτήθηκε από’ or ‘Anasintaxi Organization’ (reorganization). They are also known as “The Movement for the Reorganization of the Communist Party of Greece 1918–55” – or KKE 1918-55. They characterize the KKE disintegration post-war as follows:

“The old revolutionary KKE, under the leadership of the then General Sceretary Nikos Zachariadis, was the only communist party from a capitalist not to have accepted Krushchevian revisionism. For this reason, it was eliminated by the brutal intervention of the soviet Krushchevian revisionists in 1955-1956 and replaced by the Greek Krushchevian revisionist party (“K”KE), a bourgeois, party of social-democratic type. More than 90% of the party members led by Nikos Zachariadis opposed and fiercely resisted Krushchevian revisionism and many tens of cadres were sent to exile in Siberia including Nikos Zachariadis himself who has murdered by the social-fascist clique of Brezhnev (CPSU) – Florakis (“K”KE) in August of 1973, in Sorgut, Siberia after of 17 years of exile. In 1968, “K”KE was split into two parties: the euro-communist part known as “K”KE (interior) and the Krushchevian-Brezhnevite part known as “K”KE. SYRIZA originates from the first part and, consequently, is a social-democratic and reformist party guided by a right opportunist general line and characterized by petty bourgeois class features”

Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015; at http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

The revisionist KKE’s attitude to the European Union is characterised as follows:

“It is important to clarify that, despite its verbal attacks against EU and the Eurozone, “K”KE does not put forward (not even for the sake of demagogy) the question of Greece’s immediate exit neither from the EU nor the Eurozone. In relation to Euro, the leadership of “K”KE has stated: “A solution outside the euro and return to the drachma in the present circumstances would be catastrophic” (30/5/2011), i.e. a position that is similar to the one expressed by the president of the Union of Greek Industrialists (20/3/2012)…: “Europe or chaos” This is also evident in the party’s program that was approved by its last congress). Since some time now, “K”KE has expressed the view that “the term “national dependence” is not applicable in contemporary conditions” (1/2/2005). After the 19th Congress, it has openly adopted Trotskyite positions that mention “imperialist Greece”, “imperialist Second World War” etc and are evident in the “Program” approved in the last party Congress: “the capitalism in Greece is in the imperialist stage of development” (“K”KE Program, p. 12, Athens 2013). Concerning the character of the Second World War it is claimed that: “the problem was not only with KKE but the overall strategy of the international communist movement before and during the Second World War. In 1941, another negative point was added when the correct assessment of the war as imperialist – with respect to both sides of capitalist states – was replaced by the position that it was only anti-fascist” (“Rizospastis,” 21/12/2104)”

Αναρτήθηκε από Anasintaxi OrganizationSome questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015; at http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

As PASOK had been fully exposed, a general disillusion enabled the formation of Synaspismo (Coalition of the Left and Progress) in 1991:

“Synaspismos emerged initially as an electoral coalition at the late 1980s, with the pro-Soviet Communist Party of Greece (KKE) and the Greek Left, one of the successors of the eurocommunist KKE Interior, as its largest constituents. The Party of Democratic Socialism, a splinter from the Union of the Democratic Centre which occupied a similar position to PASOK, was the largest non-Communist member party.”

(https://en.wikipedia.org/wiki/Synaspismos).

The many parties of the left are displayed in the diagram below, which helps to show the umbrella nature of the Syriza United front. Beneath the figure itself (at the site “Lenin’s Tomb”) is a potted history of these factions. (Seymour, R. ‘Map of the Greek Radical Left’ February 9, 2015; http://www.leninology.co.uk/2015/02/map-of-greek-radical-left.html). However the figure does not explain include the currents of the Marxist-Leninist left. The OMLE was a pro-Maoist party. We further discuss at points, the positions of Αναρτήθηκε από Anasintaxi Organization, the pro-Hoxha Marxist-Leninists. Here we continue to trace the currents of Syriza.

The revisionist KKE joined Synaspismo, which contested three national elections (June 1989, November 1989, 1990). For a period they joined in Government alliances with mainstream centre-right New Democracy, ND under the premiership of Tzannis Tzannetakis. This collaboration was not viewed kindly by the increasingly politicised Greek working class and petit-bourgeois:

“The government’s official purpose was to send the former prime minister to trial and impose a clean-up of the corrupt clientelistic politics of the time… (But) leftist voters did not appreciate the decision of the left parties’ leaderships to engage in government cooperation with the centre-right; moreover, the stated aim of the Tzannetakis government was not achieved: after a long judicial process there was ultimately very little ‘cleaning up’.. the KKE pulled out of the coalition and lost 40 per cent of its cadres after a major party split in the party’s 13th Congress (February 1991). The former coalition was re-established as a unified party… In the first part of the 1990s, the Greek left as a whole was thus delegitimised in the eyes of its traditional electorate, bruised by participation in government with the centre-right and experienced internal strife and extensive demobilisation of party members, while the collapse of the Soviet Union (USSR) added an identity crisis to its woes”. (Tsakatika, and Eleftheriou, Ibid; 2013).

Greece10

The United Front of Synapsimos – or Syn as it is known – tried to appeal to a broad front, and one that explicitly crossed class lines:

“SYN.. in 2001… established a political and electoral alliance with a host of smaller parties, groups and networks of the extra-parliamentary left in the context of the Synaspismo Pizospastikh Aristra (Coalition of the Radical Left [SYRIZA])… SYN was and remained (until 2012) the largest party in the SYRIZA coalition, representing at least 80 per cent of its cadres, activists and voters. SYRIZA was one of the core choices of the party’s new leadership after 2000.. ”
(Tsakatika, and Eleftheriou, Ibid; 2013).

“SYN.. defined itself as a pluralist left party of democratic socialism, neither orthodox communist nor social democratic, supporting a mixed economy and placing a fresh emphasis on ‘new issues’, particularly feminism, democratic rights and the environment. SYN’s original core consisted of cadres whose political origins lay in the party of the Ellhnikh Aristra ́ (Greek Left [EAR]) founded in 1987 (in turn established after the KKE-es leadership’s decision to dissolve the party and contribute to the foundation of a non-communist left party) and a large group of dissidents who broke ranks with the KKE in 1991. It also incorporated a number of individuals and small groups coming from left social democracy, ecologism and the extra-parliamentary left, as well as independents.

The party’s founding document appealed to ‘the men and women of work and culture, the young and the excluded’. This was explicitly not a class appeal, since SYN effectively presented itself as a catch-all party throughout the 1990s, one that aimed to be present in ‘every nook and cranny of Greek society’. There was also an explicit trans-class appeal to groups affected by gender inequality and environmental degradation. In practice, most of its vote share, membership and cadres have mainly been from among the ranks of highly educated employees in the public sector, professionals and small employers. However, as a result of changes in internal factional dynamics, with the radical, protest-oriented

moderate (and sympathetic to government cooperation with PASOK) Anan vtikh ryga (Renewal Wing) in the party leadership after 2000, SYN shifted to a broadly defined class appeal aimed at targeting, primarily, younger cohorts and, secondarily, precariously employed workers in the services sector, social categories that were politically under-represented”
(Tsakatika, and Eleftheriou, Ibid; 2013).

The later creation of Syriza, was also a United Front. The word commonly means “coalition of the radical left”; or originally “coming from the roots” (Wikipedia):

“The Coalition of the Radical Left (Greek: Synaspismós Rizospastikís Aristerás), mostly known by its acronym, Syriza which signifies a Greek adjective meaning “from the roots”, is a left-wing political party in Greece, originally founded in 2004 as a coalition of left-wing and radical left parties. It is the largest party in the Hellenic Parliament…
The coalition originally comprised a broad array of groups (thirteen in total) and independent politicians, including social democrats, democratic socialists, left-wing patriots, feminists and green leftist groups, as well as Maoist, Trotskyist, Eurocommunist but also Eurosceptic components. Additionally, despite its secular ideology, many members are Christians who, like their atheistic fellow members, are opposed to the privileges of the state-sponsored Orthodox Church of Greece. From 2013 the coalition became a unitary party, although it retained its name with the addition of “United Social Front.”
http://en.wikipedia.org/wiki/Syriza

Syriza between 2004-8 was led by Alekos Alavanos. They created a vigorous youth movement in the driving force of the Ellhniko ́ Koinvniko ́ Foroym (Greek Social Forum [EKF]) which later organised the 4th European Social Forum (ESF) that took place in Athens in 2006. The Syriza United Front did undergo some splinters:

“In March 2009, some 10 small groups and parties formed another coalition, Antarsya (literally, the Anti-Capitalist Left Cooperation for the Overthrow). Composed primarily of university student activists in various communist organizations of orthodox Marxist, Trotskyist and Maoist backgrounds, as well of members of the relatively new rank-and-file unions outside the established bureaucracies of the official union structure of the country, it proved effective for activism in a broad range of mobilizations, but it never managed to achieve anything more than 1.8 per cent in the regional or general elections.

(Spourdalakis, Michalis; “Left strategy in the Greek cauldron: explaining syriza’s success. Socialist Register 2013; p. 105)

By 2010, Alex Tspiras was leading the Syriza party, after a section (The Renewal Wing’) split to form DIMAR (‘Renewal Wing’):

“The exit of the ‘Renewal Wing’ faction from SYN (which evolved into DIMAR) in the summer of 2010 curtailed political disagreement and factional infighting within SYN and resulted in the effective dominance of Alexis Tsipras’s leadership in both SYN and SYRIZA.”
(Tsakatika, and Eleftheriou, Ibid; 2013).

“The “social democratic” wing of Synaspismos definitely lost control of the party in 2006 when Alekos Alavanos was elected its president. This right wing, led by Fotis Kouvelis, almost exclusively originating in the Eurocommunist right group coming from EAR, ultimately left Synaspismos and set up another party called Democratic Left (Dimar): a formation that claims to be a sort of halfway house between Pasok and the radical left.”

(Stathis Kouvelakis interview with Sebastien Budgen: Greece: Phase One https://www.jacobinmag.com/2015/01/phase-one/)

But the revisionist KKE left Syn early on, and adopted a sectarian approach. Later on the KKE did not join the Greek Social Forum (EKF). Much of the KKE’s broad front work was instead performed through a Trade Union organisation – “Panrgatiko Agvnistiko Mtvpo (All Workers’ Militant Front, PAME) formed in the late 1990s. Insisting on this tactic, the KKE lost ground amongst much of the youth. For example those joining the ‘Indignants’ movement – who rejected all parties.

“Also indicative of the qualitative new dimension of the Greek people’s resistance were the now famous mobilizations of the ‘aganaktismeni’, i.e. the ‘frustrated or indignant in the squares’. These movements, which appeared in almost every major city nationwide, used new means of political mobilization (including the internet) and developed a political language which was clearly hostile to the previously existing patronizing practices of the party system. In fact this hostility was frequently displayed by spontaneous verbal and even physical attacks on politicians of the governmental parties, which at times extended to representatives of the established trade unions and the KKE.”

(Spourdalakis, Michalis;“Left strategy in the Greek cauldron: explaining syriza’s success. Socialist Register 2013; p. 108)

Stathis Kouvelakis, is a member of the central committee of Syriza and a leading member of its Left Platform. Kouvelakis pointed to the post-1968 divisions of the Greek left as “two poles.” Supposedly bridged by Syriza: the first bridge to factions of the KKE:

“Since 1968, the radical Left had been divided into two poles. The first was the Greek Communist Party (KKE), which (after splits)… (had) a rightist wing (that) constituted the Greek Left (EAR) and joined Synaspismos from the outset, and the leftist one reforming as the AKOA. The KKE that remained after these two splits was peculiarly traditionalist… It managed to win a relatively significant activist base among working-class and popular layers, as well as among the youth, particularly in the universities.” (Stathis Kouvelakis interview with Sebastien Budgen: Greece: Phase One https://www.jacobinmag.com/2015/01/phase-one/)

Kouvelakis describes Synaspsimos, as a second ‘pole’, seeding the later Syriza:

“The other pole, Synaspismos, opened out in 2004 with the creation of Syriza, which itself came from the joining together of the two previous splits from the KKE. Synaspismos has changed considerably over time. At the beginning of the 1990s, it was the kind of party that could vote for the Maastricht Treaty, and it was mainly of a moderate left coloration.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Actually the Marxist-Leninist pro-Hoxha party – (Αναρτήθηκε από Anasintaxi Organization) – is more emphatic. It places Syriza as directly deriving from the revisionist KKE, and as having taken over the KKE “social-democratic and reformist” character. Although Syriza is “socially” anti-fascist, it has “contradictions” – that impede it:

“In 1968, “K”KE was split into two parties: the euro-communist part known as “K”KE (interior) and the Krushchevian-Brezhnevite part known as “K”KE. Syriza originates from the first part and, consequently, is a social-democratic and reformist party guided by a right opportunist general line and characterized by petty bourgeois class features.

Syriza has pledged to implement a kind of neo-Keynesian economic program with the aim, at best, of relieving the burden of the consequences coming from the economic crisis of over-production and extreme neo-liberal economic policy without, however, touching the capitalist system and the imperialist dependence of Greece. Nevertheless, the implementation of this program has met negative reactions from the representatives of the imperialist organizations Commission – ECB – IMF that continue to interfere in the internal affairs of the country provocatively and without any pretext. This attitude amounts to the annulment of the recent (editor: January 2105) elections in our country.

In the sphere of social questions, Syriza is an anti-fascist party suffering from inconsistencies and contradictions as it is evident from the fact that it formed an alliance with the bourgeois nationalist party of ANEL and the nomination of Prokopis Pavlopoulos for President of the Republic, a right-wing politician from Nea Demokratia who was responsible, as Minister of Public Order in the Karamanlis government, for the bloody police violence unleashed on the country’s school youth after the murder of Alexis Grigoropoulos in December of 2008.”

(Αναρτήθηκε από Anasintaxi OrganizationSome questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

Syriza was always an electoral alliance:

“Syriza was set up by several different organizations in 2004, as an electoral alliance. Its biggest component was Alexis Tsipras’s party Synaspismos — initially the Coalition of the Left and Progress, and eventually renamed the Coalition of the Left and of the Movements …. It emerged from a series of splits in the Communist movement. Some (smaller parties also – Editor) came out of the old Greek far left. In particular, the Communist Organization of Greece (KOE), one of the country’s main Maoist groups. This organization had three members of parliament (MPs) elected in May 2012. That’s also true of the Internationalist Workers’ Left (DEA), which is from a Trotskyist tradition, as well as other groups mostly of a Communist background. For example, the Renewing Communist Ecological Left (AKOA), which came out of the old Communist Party (Interior).” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

The United Front of Syriza, had almost electoral immediate success:

“It managed to get into parliament, overcoming the 3 percent minimum threshold.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Syriza went on to replace PASOK as increasingly, Syriza candidates won in the ballot boxes. By this stage a number of other new parties had emerged, including a fascist party – Golden Dawn:

“After three years of political instability, the system collapsed in the dual elections of May and June 2012. New Democracy’s strength was halved and PASOK’s vote share diminished by 75 per cent. Three new political actors emerged, each winning around seven per cent of the vote, namely the party of the Dhmokratikh Aristra (Democratic Left, DIMAR), a recent split from SYN, Anya rthtoi Ellhn(Independent Greeks), a recent split from ND, and the extreme-right Xrysh Aygh (Golden Dawn). (Tsakatika, and Eleftheriou, Ibid; 2013).

A short lived coalition government in 2012 was formed by ND, PASOK and DIMAR in June 2012

What does Syriza represent? According to its own leaders it is an “anti-capitalist coalition” – as “class-struggle parties – but both emphasising “electoral alliances”:

“Syriza is an anti-capitalist coalition that addresses the question of power by emphasizing the dialectic of electoral alliances and success at the ballot box with struggle and mobilizations from below. That is, Syriza and Synaspismos see themselves as class-struggle parties, as formations that represent specific class interests.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In another description, it is a “hybrid party”:

“That is, it is a political front, and even within Syriza there is a practical approach allowing the coexistence of different political cultures. I would say that Syriza is a hybrid party, a synthesis party, with one foot in the tradition of the Greek Communist movement and its other foot in the novel forms of radicalism that have emerged in this new period.” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In 2012 there were about 16,000 members in Synaspismos, and the Maoist KOE had about 1-1500 members. But in the ensuring period of a year, Syriza grew rapidly further – to 35,000–36,000. By May 2012, it became the second party in Greece with 16.7 percent of the vote, beating Pasok. It relied largely on a trade union base, and pulled its voters away from the KKE. There were 3 reasons why strategists feel they did so well in the 2012 elections:

“First, The violence of the social and economic crisis in Greece and the way it developed from 2010 onward, with the austere-ian purge .. inflicted under the infamous memorandums of understanding (the agreements the Greek government signed with the troika in order to secure the country’s ability to pay off its debts). The second factor resides in the fact that Greece — and now also Spain — are the only countries where this social and economic crisis has transformed into a political crisis. .. The third factor is popular mobilization.… The real breakthrough came when Tsipras focused his discourse on the theme of constituting an “anti-austerity government of the Left” now, which he presented as an alliance proposal reaching out to the KKE, the far left, the parliamentary left, and the small dissident elements of Pasok. “ (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

Within the United Front of Syriza itself, there are two main wings (See Diagram above): The Left Platform and the majority. The Left Platform is also a United Front – of the “Left Current” mainly influenced by the KKE and a Trotskyist component:

“The Left Platform has two components, the Left Current, which is a kind of traditional communist current — essentially constituted by trade unionists and controlling most of the trade union sector of Syriza. These people in their vast majority come from the KKE, so they are those who broke with the KKE in the last split of the party in 1991. And then there is the Trotskyist component (DEA and KOKKOINO, recently fused).” (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

In turn, this Left wing has formed a sub-group – the “Platform of the 53”:

“The left of the majority has coalesced around the “Platform of the Fifty-Three,” signed by fifty-three members of the central committee and some MPs in June 2014, immediately after the European elections. They strongly criticized Tsipras’s attempts to attract establishment politicians, and for leading a campaign that didn’t give a big enough role to social mobilizations and movements”. (Stathis Kouvelakis interview with Sebastien Budgen; Ibid).

From quite early on, Tsipras had been criticised from his Left – on charges along the lines of opportunism. What Programme did Syriza put forth?

9. What was the elected programme of Syriza?

The Thessalonika Conference is accepted as being the progaramme of the United Front of Syriza. (Syriza – The Thessalonika Programme” at http://www.syriza.gr/article/id/59907/SYRIZA—THE-THESSALONIKI-PROGRAMME.html#.VQSgEChOTdl

In broadest terms the Programme calls for cessation of “the Nazi Occupation forced loan from the Bank of Greece” – and lifting of the Greek Public Debt: A slogan “No sacrifice of the Euro” was often heard:

  • “Write-off the greater part of public debt’s nominal value so that it becomes sustainable in the context of a «European Debt Conference». It happened for Germany in 1953. It can also happen for the South of Europe and Greece.
  • Include a «growth clause» in the repayment of the remaining part so that it is growth-financed and not budget-financed.
  • Include a significant grace period («moratorium») in debt servicing to save funds for growth.
  • Exclude public investment from the restrictions of the Stability and Growth Pact.
  • A «European New Deal» of public investment financed by the European Investment Bank.
  • Quantitative easing by the European Central Bank with direct purchases of sovereign bonds.
  • Finally, we declare once again that the issue of the Nazi Occupation forced loan from the Bank of Greece is open for us. Our partners know it. It will become the country’s official position from our first days in power.
    On the basis of this plan, we will fight and secure a socially viable solution to Greece’s debt problem so that our country is able to pay off the remaining debt from the creation of new wealth and not from primary surpluses, which deprive society of income.
    With that plan, we will lead with security the country to recovery and productive reconstruction by:
  • Immediately increasing public investment by at least €4 billion.
  • Gradually reversing all the Memorandum injustices.
  • Gradually restoring salaries and pensions so as to increase consumption and demand.
  • Providing small and medium-sized enterprises with incentives for employment, and subsidizing the energy cost of industry in exchange for an employment and environmental clause.
  • Investing in knowledge, research, and new technology in order to have young scientists, who have been massively emigrating over the last years, back home.
  • Rebuilding the welfare state, restoring the rule of law and creating a meritocratic state.
    We are ready to negotiate and we are working towards building the broadest possible alliances in Europe.”

In this document it further says that “within our first days in power,” after “negotiations end” with the Troika (And on its Memorandum)– they will begin enacting the following “National Reconstruction Plan” What does this embody? There are Four Pillars to this, which we recap briefly.

The 1st Pillar is “Confronting the humanitarian crisis at an estimated Total estimated cost of €1,882 billion

“Our program…. amounts to a comprehensive grid of emergency interventions, so as to raise a shield of protection for the most vulnerable social strata. Free electricity (Total cost: €59,4 million).

  • Programme of meal subsidies to 300.000 families without income. Total cost: €756 million.
  • Programme of housing guarantee. The target is the provision of initially 30.000 apartments (30, 50, and 70 m²), by subsidizing rent at €3 per m². Total cost: €54 million.
  • Restitution of the Christmas bonus, as 13th pension, to 1.262.920 pensioners with a pension up to €700. Total cost: €543,06 million.
  • Free medical and pharmaceutical care for the uninsured unemployed. Total cost: €350 million.
  • Special public transport card for the long-term unemployed and those who are under the poverty line. Total cost: €120 million.
  • Repeal of the leveling of the special consumption tax on heating and automotive diesel. Bringing the starting price of heating fuel for households back to €0,90 per lt, instead of the current €1,20 per lt. Benefit is expected.”

The 2nd Pillar is “Restarting the economy and promoting tax justice” Total estimated cost: €6,5 billion; Total estimated benefit: €3,0 billion

“This second pillar is centered on measures to restart the economy. Priority is given to alleviating tax suppression on the real economy, relieving citizens of financial burdens, injecting liquidity and enhancing demand.

Excessive taxation on the middle class as well as on those who do not tax-evade has entrapped a great part of citizens in a situation which directly threatens their employment status, their private property, no matter how small, and even their physical existence, as proved by the unprecedented number in suicides.

  • Settlement of financial obligations to the state and social security funds in 84 installments. Estimated benefit: €3 billion

The revenue which we expect to collect on an annual basis (between 5% and 15% of the total owed) will be facilitated by the following measures:

  • The immediate cease of prosecution as well as of confiscation of bank accounts, primary residence, salaries, etc, and the issuance of tax clearance certificate to all those included in the settlement process.
  • A twelve-month suspension of prosecution and enforcement measures against debtors with an established zero income, included in the settlement process.
  • Repeal of the anti-constitutional treatment of outstanding financial obligations to the state as offence in the act (in flagrante delicto).
  • Abolition of the mandatory 50% down payment of the outstanding debt as a prerequisite to seek a court hearing. The down payment will be decided by a judge. It will be around 10%-20%, according to the financial circumstances of the debtor.
  • Immediate abolition of the current unified property tax (ENFIA). Introduction of a tax on large property. Immediate downward adjustment of property zone rates per m². Estimated cost: €2 billion.

That tax will be progressive with a high tax-free threshold. With the exception of luxurious homes, it will not apply on primary residence. In addition, it will not concern small and medium property.

  • Restitution of the €12000 annual income tax threshold. Increase in the number of tax brackets to ensure progressive taxation. Estimated cost: €1.5 billion.
  • Personal debt relief by restructuring non-performing loans («red loans») by individuals and enterprises.

This new relief legislation will include: the case-by-case partial write-off of debt incurred by people who now are under the poverty line, as well as the general principle of readjusting outstanding debt so that its total servicing to banks, the state, and the social security funds does not exceed ⅓ of a debtor’s income.

  • Establishment of a public development bank as well as of special-purpose banks: Starting capital at €1 billion.
  • Restoration of the minimum wage to €751. Zero cost.

The 3rd Pillar is “Regaining employment” Estimated cost: €3 billion

A net increase in jobs by 300,000 in all sectors of the economy – private, public, social – is expected to be the effect of our two-year plan to regain employment. …Restitution of the institutional framework to protect employment rights that was demolished by the Memoranda governments…. Restitution of the so-called «after-effect» of collective agreements; of the collective agreements themselves as well as of arbitration….. Abolition of all regulations allowing for massive and unjustifiable layoffs as well as for renting employees.

Zero cost: Employment programme for 300000 new jobs. Estimated first-year cost: €3 billion

The 4th Pillar is: “Transforming the political system to deepen democracy”

Total estimated cost: €0

From the first year of SYRIZA government, we set in motion the process for the institutional and democratic reconstruction of the state. We empower the institutions of representative democracy and we introduce new institutions of direct democracy.

Regional organization of the state. Enhancement of transparency, of the economic autonomy and the effective operation of municipalities and regions. We empower the institutions of direct democracy and introduce new ones.

Empowerment of citizens’ democratic participation. Introduction of new institutions, such as people’s legislative initiative, people’s veto and people’s initiative to call a referendum.

Empowerment of the Parliament, curtailment of parliamentary immunity, and repeal of the peculiar legal regime of MPs’ non-prosecution.

Regulation of the radio/television landscape by observing all legal preconditions and adhering to strict financial, tax, and social-security criteria. Re-establishment of ERT (Public Radio and Television) on a zero basis.”

(Thessalalonkia Programme; Ibid)

This is viewed by significant leaders of the Syriza as a “transitional programme,” as explained in an interview with Efklidis Tsakalotos, a member of Parliament with SYRIZA and responsible for the economic policy of Syriza. (An Interview With Syriza’s Efklidis Tsakalotos Syriza’s Moment; by E. AHMET TONAK” JANUARY 23-25, 2015; http://www.counterpunch.org/2015/01/23/syrizas-moment/) :

“Syriza’s programme is a transitional one. It wants to start the process of not only reversing the policies of austerity but also dismantling some of the central pillars of the neo-liberal order. As with all transitional programmes the goal is to open up fissures for more radical polices. Whether we in Europe can achieve this depends on the extent that social movements are inspired to make use of the opportunities that arise to broaden the agenda in favour of a more participatory, institutionally-diverse, and socially just economy. Left-wing governments can do only so much. Social transformations, especially in the modern era, need the active engagement of millions. Parties and governments of the Left must see their role as catalysts of these wider developments. What is certain is that we are living in interesting times!”

(Interview with Tsakalotos Ibid).

In truth, the programme that was put forward by Syriza entirely stays within the confines of the EU. Instead of breaking that mould, it attempts to lay a negotiating position to lessen the burdens that are being demanded of the Greek peoples. It is correct that Syriza has never claimed to be a Leninist type party. Nonetheless, this perspective put above, is the antithesis of Leninism. As explained by Lenin in ‘State and Revolution” “trasnational forms” are needed. Both Marx and Lenin certainly agreed that a “special stage” – or a stage of transition from capitalism to communism was needed:

“The first fact that has been established most accurately by the whole theory of development, by science as a whole–a fact that was ignored by the utopians, and is ignored by the present-day opportunists, who are afraid of the socialist revolution–is that, historically, there must undoubtedly be a special stage, or a special phase, of transition from capitalism to communism.” https://www.marxists.org/archive/lenin/works/1917/staterev/ch05.htm

However, crucially, this transition needed to be a revolutionary transition:

“Between capitalist and communist society lies the period of the revolutionary transformation of the one into the other. Corresponding to this is also a political transition period in which the state can be nothing but the revolutionary dictatorship of the proletariat.”

Previously the question was put as follows: to achieve its emancipation, the proletariat must overthrow the bourgeoisie, win political power and establish its revolutionary dictatorship.

Now the question is put somewhat differently: the transition from capitalist society–which is developing towards communism–to communist society is impossible without a “political transition period”, and the state in this period can only be the revolutionary dictatorship of the proletariat. What, then, is the relation of this dictatorship to democracy? We have seen that the Communist Manifesto simply places side by side the two concepts: “to raise the proletariat to the position of the ruling class” and “to win the battle of democracy”. On the basis of all that has been said above, it is possible to determine more precisely how democracy changes in the transition from capitalism to communism. In capitalist society, providing it develops under the most favourable conditions, we have a more or less complete democracy in the democratic republic. But this democracy is always hemmed in by the narrow limits set by capitalist exploitation, and consequently always remains, in effect, a democracy for the minority, only for the propertied classes, only for the rich. Freedom in capitalist society always remains about the same as it was in the ancient Greek republics: freedom for the slave-owners. Owing to the conditions of capitalist exploitation, the modern wage slaves are so crushed by want and poverty that “they cannot be bothered with democracy,” “cannot be bothered with politics”; in the ordinary, peaceful course of events, the majority of the population is debarred from participation in public and political life.”

Lenin State & Revolution: Experience of the Paris Commune of 1871. Marx’s Analysis (https://www.marxists.org/archive/lenin/works/1917/staterev/ch03.htm)

Lenin points out that there is a “hemming in by narrow limits” of democracy. How much “narrower” is it when not only the single state “hems it in” – but the imperialists of the EU also “hem it in?” The next period, following the January elections of 2015, would answer this question.

10. Elections of 2015 and Negotiations with the Troika

The short-lived governments could not maintain credibility, as they were always accomodating to the new Troika demands. The mass movement shifted to the left, as shown by the huge demonstrations in the central Square. The elections of January 25 2015, sealed the rise to power of Syriza:

“After the Hellenic Parliament failed to elect a new President of State by 29 December 2014, the parliament was dissolved and a snap 2015 legislative election was scheduled for 25 January 2015. Syriza had a lead in opinion polls, but its anti-austerity position worried investors and eurozone supporters. The party’s chief economic advisor, John Milios, has downplayed fears that Greece under a Syriza government would exit the eurozone, while shadow development minister George Stathakis disclosed the party’s intention to crack down on Greek oligarchs if it wins the election. In the election, Syriza defeated the incumbent New Democracy and went on to become the largest party in the Hellenic Parliament, receiving 36.3% of the vote and 149 out of 300 seats.”

http://en.wikipedia.org/wiki/Syriza

“January 25th marks a historic turning point in recent Greek history. After five years of devastating austerity, a social crisis without precedent in Europe, and a series of struggles that at some points, especially in 2010-2012, took an almost insurrectionary form, there has been a major political break. The parties that were responsible for putting Greek society under the disciplinary supervision of the so-called Troika (EU-ECB-IMF) suffered a humiliating defeat. PASOK, which in 2009 won almost 44% of the vote, now received only 4.68%; and the splinter party of Giorgos Papandreou, the PASOK Prime Minister who initiated the austerity programs, got 2.46%. New Democracy came in at 27.81%, almost 9% below SYRIZA. The electoral rise of the fascists of Golden Dawn has been halted, although they still maintain a worrying 6% of the vote. Another pro-austerity party, the RIVER, representing the neoliberal agenda (although nominally coming from the center-left) took only 6.05%, despite intensive media hype.”

(Panagiotis Sotiris; https://viewpointmag.com/2015/01/28/a-strategy-of-ruptures-ten-theses-on-the-greek-future/)

Rapidly, by 26 January 2015, Tsipras and Independent Greeks (ANEL) leader Panos Kammenos agreed on a coalition government between Syriza and ANEL. Tsipras would be the Prime Minister of Greece, with the academic economist Yanis Varoufakis as his Minister of Finance.

Yet, in a graphic display of its intended response to the rebuke that the Troika and especially the German imperialists had received, the official line was hard:

“German government official Hans-Peter Friedrich however said: “The Greeks have the right to vote for whom they want. We have the right to no longer finance Greek debt.” http://en.wikipedia.org/wiki/Syriza

The Greek pro-Hoxha Marxist-Leninist view is that the Greek people took a stand against both the Troika and the Greek capitalists:

“By voting for SYRIZA, the majority of the Greek people rejected and condemned the cruel economic measures that were imposed, the neoliberal economic policy, in general, and the great-bourgeois parties of ND and PASOK that implemented these measures with the outmost servility. The victory of SYRIZA is also explained by the people’s resentment towards the fascist re-modeling of social life promoted by the government of the fascist scoundrel Samaras”. (January 24, 2015; “BOYCOTT the elections–The elections do not solve the problem of imperialist DEPENDANCE (economic-political-military, NATO bases etc.), nor repel-cancel ongoing EU politics against the people http://anasintaxi-en.blogspot.ca/2015/01/boycott-electionsthe-elections-do-not_24.html)

However Anasintaxi also had called for abstention from the elections of 2015, arguing that:

“In contrary ALL the bourgeois parties are in favor of Greece’s STAY in imperialist European Union, and in EURO-EMU and propagate consciously, serve the interests of the EU imperialists with misleading MYTH-fantasies about “equal participation” (!) of the country in the “pit of lions” of the powerful European monopolies. At the same time they propagate that Greece leaving the Euro-EMU-EU will be a “major disaster” (!).

ALL the reformist social democratic parties (“K” KE-SYRIZA, etc.) and the extra-parliamentary organizations follow the same strategic choice of the EU monopolies and the local capital.

It is not only SYRIZA which supports the country STAY (in) EURO-EMU-EU, but also the “K” KE: “A solution outside the euro and return to the drachma in the present circumstances would be catastrophic” (A. Papariga, “Rizospastis” 31/5/2011, p.6) Moreover: the leaders of the “K” KE definitively renounced the anti-imperialist struggle for the overthrow of dependence”

(January 24, 2015; “BOYCOTT the elections–The elections do not solve the problem of imperialist DEPENDANCE (economic-political-military, NATO bases etc.), nor repel-cancel ongoing EU politics against the people http://anasintaxi-en.blogspot.ca/2015/01/boycott-electionsthe-elections-do-not_24.html)

After the election, Anasintaxi warned that Syriza had entered into coalition with right-wing ANEL. However early on, the government had taken some progressive steps:

“During the first three weeks following the elections, the SYRIZA government has taken a series of actions in order to implement its program that has won the support of wide popular strata, an attitude that is unfortunately accompanied by certain illusions. At the same time, the government’s actions have met a very negative reception from Commission – ECB – IMF whose pressure and constant interference in the country’s internal affairs is condemned by the Greek people. We think that, up to a certain extent, SYRIZA’s victory creates favorable conditions for the strengthening of class struggles. Whether this possibility becomes a reality depends, of course on many factors the most important of which is the organization of the majority of the working masses in independent and united trade unions and the influence exerted on these and, the society in general, by the consistent left-wing, anti-imperialist and revolutionary communists.”

(Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html)

At this early point, both Tsipras and Varoufakis were apparently determined to negotiate hard, with the threat to leave the EU if the Troika did not back down:

“Greece’s finance minister Yanis Varoufakis has spelled out the negotiating strategy of the Syriza government with crystal clarity.
“Exit from the euro does not even enter into our plans, quite simply because the euro is fragile. It is like a house of cards. If you pull away the Greek card, they all come down,” he said.
“Do we really want Europe to break apart? Anybody who is tempted to think it possible to amputate Greece strategically from Europe should be careful. It is very dangerous. Who would be hit after us? Portugal? What would happen to Italy when it discovers that it is impossible to stay within the austerity straight-jacket?”
“There are Italian officials – I won’t say from which institution – who have approached me to say they support us, but they can’t say the truth because Italy is at risk of bankruptcy and they fear the consequence from Germany. A cloud of fear has been hanging over Europe over recent years. We are becoming worse than the Soviet Union,” he told the Italian TV station RAI.
This earned a stiff rebuke from the Italian finance minister, Pier Carlo Padoan. “These comments are out of place. Italy’s debt is solid and sustainable,” he said.
Yet the point remains. Deflationary conditions are causing interest costs to rise faster than nominal GDP in Italy, Spain, and Portugal, automatically pushing public debt ratios ever higher.
Berkeley economist Barry Eichengreen warns that Grexit would be “Lehman squared”, setting off a calamitous chain reaction with worldwide consequences. Syriza’s gamble is that the EU authorities know this, whatever officials may claim in public.
Premier Alexis Tsipras is pushing this to the wire. Rightly or wrongly, he calculates that Greece holds the trump card – the detonation of mutual assured destruction, to borrow from Cold War parlance – and that all the threats from EMU power centres are mere bluster.
His cool nerve has caught Brussels, Frankfurt, Berlin, and the markets off guard. They assumed that this 40-year neophyte would back away from exorbitant demands in his landmark policy speech to the Greek parliament on Sunday night. Instead they heard a declaration of war.
He vowed to implement every measure in Syriza’s pre-electoral Thessaloniki Programme “in their entirety” with no ifs and buts. This even includes a legal demand for €11bn of war reparations from Germany, a full 71 years after the last Wehrmacht soldier left Greek soil.
There is no possible extension of Greece’s bail-out programme with the EU-IMF Troika, for that would be an “extension of mistakes and disaster”, a perpetuation of the debt-deflation trap. “The People have abolished the Memorandum. We will not negotiate our sovereignty,” he said.
Macropolis said every item was in there: a pension rise for the poorest; no further rises in the retirement age; an increase in the minimum wage to €751 a month by 2016; a return to collective bargaining; an end to privatisation of utilities; cancellation of a new property tax (ENFIA); a rise in tax-free thresholds from €5,000 to €12,000; and a rehiring of 10,000 public workers fired “illegally.”

(Ambrose Evans-Pritchard. “Greece’s leaders stun Europe with escalating defiance”. ‘The Telegraph’; 09 Feb 2015; http://www.telegraph.co.uk/finance/economics/11400778/Greeces-leaders-stun-Europe-with-escalating-defiance.html)

However in a foretaste of the future intransigence of the German imperialists, led by Wolfang Schauble the German Finance Minister – Greece’s first counter-offer was rejected out of hand:

“Schauble continues to insist that Greece sticks to the bailout conditions agreed with previous governments under which financial support will be given only in exchange for substantial structural reforms.
The finance ministry’s position risks deepening splits within Europe over how to deal with Greece as an end of February deadline nears at which the previous bailout agreement with its creditors and the European Central Bank runs out, leaving Greece facing bankruptcy.
In contrast to Berlin, the EU commission president Jean-Claude Juncker welcomed the Greek application, saying in his opinion it could pave the way for a “sensible compromise in the interest of financial stability in the Eurozone as a whole”.
But experts said Greece was merely playing for time, and that its application had indeed contained no new commitments. “The Greeks have simply tried to pass the buck back to the middle,” Matthias Kullas from the Centre for European Politics in Freiburg told The Guardian.
He stressed the German reaction was not a rejection over reaching a compromise with Greece, but did mean that expectations of an agreement on Friday when finance ministers from the eurogroup meet again, were now “slim”.
“If an agreement is reached, it will be at the last minute,” he said. “It’s in the interest of both sides to stick to their guns. The earlier one of them diverts from his course, the weaker his position becomes and the more elbow room he leaves for the other.”

(Kate Connolly. “Germany rejects Greek bailout plan – as it happened”. The Guardian 19 February 2015; http://www.theguardian.com/business/blog/live/2015/feb/19/greece-to-seek-bailout-extension-after-33bn-lifeline)

A furious cycle of media reports and counter reports paralleled a back and forth between the European Union and the Greek negotiating team of Tsipras and Varoufakis. In essence no counter-offer by the Greek team was deemed acceptable. It is true that the initial efforts of the Greek team to counter the demands were insubstantial. However even when substantial retreats had been offered, they were humiliatingly rejected. While the European team was overall untied, strains emerged. It was apparent that the Germans were the most stout in the rejections. However both the French and the Italians were wavering. Nonetheless even the IMF initially firmly supported the German position:

“Last week Greece received a four-month extension of its $277 billion bailout program. The parliaments of Finland, Estonia and, most importantly, Germany, as well as Greece’s other EU partners, approved the bailout program that was agreed to Feb. 20, provided that Greece submit a list of planned reforms. Greece submitted six pages of reforms last Monday, but not all of Greece’s creditors think they are sufficient.

Christine Lagarde, managing director of the International Monetary Fund (IMF), wrote a letter to Dutch Finance Minster Jeroen Dijsselbloem, who is also president of the Eurogroup of eurozone finance ministers, expressing her concern that Greece’s proposed reforms were not specific enough, nor did they contain sufficient assurances on their design and implementation. The letter is the most recent, and public, indication of the IMF’s hesitancy toward Greece and its bailout program.

(Maria Savel. “IMF Stands Firm, Forcing Greece and Syriza to Accept Hard Concessions” Politics Review, March 3, 2015, http://www.worldpoliticsreview.com/trend-lines/15210/imf-stands-firm-forcing-greece-and-syriza-to-accept-hard-concessions)

By March, Tsipras was still assuming the EU would not want to have a member leave:

“SPIEGEL: Many experts now fear a “Graccident” — Greece’s accidental exit from the euro. If the ECB doesn’t agree to your T-Bills, that’s exactly what might happen.
Tspiras: I cannot imagine that. People won’t risk Europe’s disintegration over a T-Bill of almost €1.6 billion. There is a saying for this in Greece: A wet man does not fear the rain.”

(Der Spiegel Interview Conducted By Manfred Ertel, Katrin Kuntz and Mathieu von Rohr: Greek Prime Minister Tsipras: ‘We Don’t Want to Go on Borrowing Forever’; March 7 2015; at http://www.spiegel.de/international/europe/spiegel-interview-with-greek-prime-minister-tsipras-a-1022156.html)

As time went on, the Greek banks were forced to put restrictions on withdrawals. The EU allowed some further liquidity in Greece by allowing Greece to print more T-Bills, but purely for internal use. This was violated by Greece. More and more comments were heard that Greece might have to exit the EU – a so called Grexit or Greccident:

“The current money-go-round is unsustainable. Euro-region taxpayers fund their governments, which in turn bankroll the European Central Bank. Cash from the ECB’s Emergency Liquidity Scheme flows to the Greek banks; they buy treasury bills from their government, which uses the proceeds to … repay its International Monetary Fund debts! …
There’s blame on both sides for the current impasse. Euro-area leaders should be giving Greece breathing space to get its economic act together. But the Greek leadership has been cavalier in its treatment of its creditors. It’s been amateurish in expecting that a vague promise to collect more taxes would win over Germany and its allies. And it’s been unrealistic in expecting the ECB to plug a funding gap in the absence of a political agreement for getting back to solvency. ……Greece’s three-year bond yield is back above 20 percent, double what it was just before Alexis Tsipras was elected prime minister on an anti-austerity platform in January. At that level, there’s no way Greece can end its reliance on its bailout partners anytime soon.
German Finance Minister Wolfgang Schaeuble was scathing yesterday about Greece’s efforts to balance its election promises with its bailout obligations, and about its standing with international investors:
“None of my colleagues, or anyone in the international institutions, can tell me how this is supposed to work. Greece was able to sell those treasury bills only in Greece, with no foreign investor ready to invest. That means that all of the confidence was destroyed again.”
Every day’s delay in cutting a deal pushes Greece a little closer to leaving the common currency. That would be a shame, since it’s an outcome no one — apart from Schaeuble — seems to desire. The mutability of euro membership could also unleash contagion and a domino effect. But it looks increasingly inevitable.”

(Mark Gilbert; “Greece’s Euro Exit Seems Inevitable”: 17 March 2015; http://www.bloombergview.com/articles/2015-03-17/greece-s-euro-exit-seems-inevitable)

By April 2015, reports circulated that secret plans were being drawn up to revive the Drachma and go into default (Evans-Pritchard A, 2 April 2015; Telegraph at http://www.telegraph.co.uk/finance/economics/11513341/Greece-draws-up-drachma-plans-prepares-to-miss-IMF-payment.html).

On May 4th the BBC reported that Greek banks were not allowing pensioners to withdraw more than a small amount, and that public sector workers were nto being paid regularly (http://www.bbc.com/news/world-europe-32580919). However on May 6th however Greece paid back $200 million to the IMF and avoided insolvency. At that time the European Central Bank (ECB) granted further liquidity to Greece. (Phillip Inman and Helena Smith; 6 May, The Guardian; at http://www.theguardian.com/world/2015/may/06/greek-debt-default-avoided-after-200m-payment-to-imf)

By June the situation was still not resolved, and Greece’s peoples were in an even more precarious position. By this time, Syriza had retreated substantially more. Michael Roberts summarises to June:

“The IMF representative in the negotiations, Poul Thomsen, has “pushed the austerity agenda with a curious passion that shocks even officials in the European Commission, pussy cats by comparison” (here are the latest demands of the Troika Greece – Policy Commitments Demanded By EU etc Jun 2015). The IMF is demanding further sweeping measures of austerity at a time when the Greek government debt burden stands at 180% of GDP, when the Greeks have already applied the biggest swing in budget deficit to surplus by any government since the 1930s and when further austerity would only drive the Greek capitalist economy even deeper into its depression. As the Daily Telegraph summed it up: “six years of depression, a deflationary spiral, a 26pc fall GDP, 60pc youth unemployment, mass exodus of the young and the brightest, chronic hysteresis that will blight Greece’s prospects for a decade to come.”

The Syriza government has already made many and significant retreats from its election promises and wishes.  Many ‘red lines’ have been crossed already. It has dropped the demand for the cancellation of all or part of the government debt; it has agreed to carry through most of the privatisations imposed under the agreement reached with the previous conservative New Democracy government; it has agreed to increased taxation in various areas; it is willing to introduce ‘labour reforms’ and it has postponed the implementation of a higher minimum wage and the re-employment of thousands of sacked staff.

But the IMF and Eurogroup wanted even more. The Troika has agreed that the original targets for a budget surplus (before interest payments on debt) could be reduced from 3-4% of GDP a year up to 2020 to 1% this year, rising to 2% next etc. But this is no real concession because government tax revenues have collapsed during the negotiation period. At the end of 2014, the New Democracy government said that it would end the bailout package and take no more money because it could repay its debt obligations from then on as the government was running a primary surplus sufficient to do so. But that surplus has now disappeared as rich Greeks continue to hide their money and avoid tax payments and small businesses and employees hold back on paying in the uncertainty of what is going to happen. The general government primary cash surplus has narrowed by more than 59 percent to 651 million euros in the 4-month period of 2015 from 1.6 billion in the corresponding period last year
The Syriza government has only been able to pay its government employees their wages and meet state pension outgoings by stopping all payments of bills to suppliers in the health service, schools and other public services. The result is that the government has managed to scrape together just enough funds to meet IMF and ECB repayments in the last few months, while hospitals have no medicines and equipment and schools have no books and materials; and doctors and teachers leave the country.

Even Ashoka Mody, former chief of the IMF’s bail-out in Ireland, has criticised the attitude of his successor in the Greek negotiations: “Everything that we have learned over the last five years is that it is stunningly bad economics to enforce austerity on a country when it is in a deflationary cycle. Trauma patients have to heal their wounds before they can train for the 10K.”

The final red lines have been reached. What the Syriza leaders finally balked at was the demand by the IMF and the Eurogroup that the government raise VAT on electricity by 10 percentage points, directly hitting the fuel payments of the poorest; and also that the poorest state pensioners should have their pensions cuts so that the social security system could balance its books. Further down the road, the Troika wants major cuts in the pensions system by raising the retirement ages and increasing contributions. The Syriza leaders were even prepared to agree to some VAT rises and pension ‘reforms’, but the two specific demands of the Troika appear to have been just too much.”

(Roberts, Michael Blog; June 15, 2015;: “Ten minutes past midnight”; https://thenextrecession.wordpress.com/2015/06/06/ten-minutes-past-midnight/)

Increasingly leading economists including Nobel Laureates Joseph Stiglitz and Paul Krugman, Amartya Sen and others – warned about a new “Versailles moment”, and insisted that German stubbornness was actually bad for Europe as a whole, and that a “hair-cut” to the debt was necessary – i.e. a dramatic waiver-cut of the debt (Simon Wren-Lewis. “Why Amartya Sen Is Right About What Is Being Done To Greece”; 12 June 2015; in ‘Social Europe’ at http://www.socialeurope.eu/2015/06/why-amartya-sen-is-right-about-what-is-being-done-to-greece/). President Obama of the USA had already agreed that:

“”You cannot keep on squeezing countries that are in the midst of depression.”
“At some point, there has to be a growth strategy in order for them to pay off their debts to eliminate some of their deficits,” (Aurelia End; Obama joins ally list on Greek austerity relief http://news.yahoo.com/obama-joins-ally-list-greek-austerity-relief-033040983.html )

As the Left inside Syriza resisted Tsipras’s slippery slope of acceptance of new demands, they increasingly pointed to the example of Iceland who had defaulted on international debts in a similar situation. They got substantial agreement from even the ANSEL coalition party members also. (Ambrose Pritchard-Evans. “Syriza Left demands ‘Icelandic’ default as Greek defiance stiffens”.14 June ‘Daily Telegraph’; http://www.telegraph.co.uk/finance/11673989/Syriza-Left-demands-Icelandic-default-as-Greek-defiance-stiffens.html ).

In a twist to the pre-July series of negotiations, as even more demands were made of the package being offered by Tsipras and Varoufakis, Tsipras called a snap referendum, saying he needed to have a further mandate form the Greek people, in order to agree to the latest demands and obtain the new tranche of bail-out funds. Bizarrely however, he then wrote to the Imperialists saying he would accept – only to find that the imperialists had withdrawn their offer. Tsipras had to go on to the snap Referendum:

“Tsipras infuriated eurozone finance ministers by calling a snap referendum on proposals to agree a deal to release the €7.2bn in bailout funds it needed to meet an IMF repayment. His argument was that the concessions still being demanded by creditors, including VAT rises and rapid reform of the unaffordable pension system, and the lack of any serious prospect of debt relief, meant he could not sign up without a fresh public mandate – and, indeed, he and Varoufakis immediately urged their countrymen to vote “No”.

Yet it emerged that while publicly lambasting the troika, the very same Tsipras had dispatched a two-page letter to Brussels that caved into many of the demands he had angrily rejected a few days earlier – and continued to insist on putting to the public vote. It was too late: his exasperated creditors, and Germany in particular, in the person of Berlin’s implacable finance minister, Wolfgang Schäuble, decided enough was enough and the offer was no longer on the table. Amid the storm of political recriminations, the European Central Bank capped financial support to the Greek banking sector, forcing the government to impose capital controls, to stem the relentless slow-motion bank run that has been leaching the life out of the country’s financial system for months. And last Tuesday, as it warned it would, Athens defaulted on its payment to the IMF. To all intents and purposes, the country is bust.

So Greek voters now face trudging to the polls today, either to vote Yes to a set of proposals that are no longer on the table – presumably ushering in a new, more emollient government that would get straight back to the negotiating table – or to send a defiant no to further austerity. Tsipras and Varoufakis insist that “No” would not mean plunging out of the eurozone, let alone the EU. Instead, they say they would re-enter talks as if brandishing a petition. Yet last time they were handed a stock of political capital by the Greek public, in January’s general election, they quickly squandered it. Both Tsipras and Varoufakis have forged their political reputations by rejecting consensus and overturning the received wisdom. But international diplomacy means understanding that everyone at the table, whatever your grievances against them, has their own mandate and their own domestic audience to placate.

Instead of opening up ways for the troika to save face, Tsipras and Varoufakis have used every means available – from provocative tweets to spiky speeches in Syntagma Square – to heighten the divisions between Greece and its eurozone partners, accusing them of trying to blackmail and humiliate the Greek people into submission.”

(Observer Editorial. “The Observer view on Greece’s referendum “5 July 2015; http://www.theguardian.com/commentisfree/2015/jul/05/greece-let-down-by-partners-and-leaders).

In the midst of this circus, before the Referendum – the USA and the IMF (in the person of Christine Lagarde) exerted further pressure on the Germans to bend. Already calls had been made by many economists, that Germany had been granted a waiver on the demands at the end of the First Word war (the Versailles treaty). These had been firmly ignored by the German imperialists. Now the IMF threw a spanner into the erst-while United Front of the imperialists:

“The International Monetary Fund has electrified the referendum debate in Greece after it conceded that the crisis-ridden country needs up to €60bn (£42bn) of extra funds over the next three years and large-scale debt relief to create “a breathing space” and stabilise the economy.
With days to go before Sunday’s knife-edge referendum that the country’s creditors have cast as a vote on whether it wants to keep the euro, the IMF revealed a deep split with Europe as it warned that Greece’s debts were “unsustainable”.
Fund officials said they would not be prepared to put a proposal for a third Greek bailout to the Washington-based organisation’s board unless it included both a commitment to economic reform and debt relief.
According to the IMF, Greece should have a 20-year grace period before making any debt repayments and final payments should not take place until 2055. It would need €10bn to get through the next few months and a further €50bn after that.
The Greek prime minister Alexis Tsipras welcomed the IMF’s intervention saying in a TV interview that what the IMF said was never put to him during negotiations.”

(Philipp Inman, Larry Elliot, Alberto Nardelli; IMF says Greece needs extra €60bn in funds and debt relief”; The Guardian 2 July 2015; at http://www.theguardian.com/business/2015/jul/02/imf-greece-needs-extra-50bn-euro).

The Referendum was held on 5th July 2015. The result was a defiant “NO!” to the European imperialists:

“The final result in the referendum, published by the interior ministry, was 61.3% “No”, against 38.7% who voted “Yes.”
Greece’s governing Syriza party had campaigned for a “No”, saying the bailout terms were humiliating.
Their opponents warned that this could see Greece ejected from the eurozone, and a summit of eurozone heads of state has now been called for Tuesday.
Greek Prime Minister Alexis Tsipras said late on Sunday that Greeks had voted for a “Europe of solidarity and democracy”.
“As of tomorrow, Greece will go back to the negotiating table and our primary priority is to reinstate the financial stability of the country,” he said in a televised address.
“This time, the debt will be on the negotiating table,” he added, saying that an International Monetary Fund assessment published this week “confirms Greek views that restructuring the debt is necessary.”

(Mark Lowen; “Greece debt crisis: Greek voters reject bailout offer”; 6th July; BBC http://www.bbc.com/news/world-europe-33403665).

Strangely – Tsipras appeared not too happy. It became clear that he had been expecting a ‘Yes’ vote, which would enable him to cave in to the EU demands. He had relied on the often remarked on “wish of the Greek peoples to see themselves as European” and thus not to risk leaving the EU. But the Greek people had seen the callous manipulations of the EU leaders.

On the same day the results were announced, Yanis Varoufakis resigned – saying that this would help the negotiations going forward, but that this resignation had been essentially, at the request of Tsipras.

Proponents of the logical outcome of the “No” Vote – such as Yanis Varoufakis – were simply told to drop alternative plans. Varoufakis had been drawing up “Plan B” – whereby if the Troika did not retreat to any key extent – Greece would resurrect the pre-Euro currency of the Drachma.

Astonishingly, given this pledge by the Greek people to stand fast, in the final run of negotiations with the EU, Tsipras – then completely capitulated to Eurozone, primarily German imperialists. Unsurprisingly, in the renewed negotiations – the European leaders and most sections of banking capital – had simply turned their backs on the Greek populations views and demanded even harsher terms:

“The Greek government capitulated on Thursday to demands from its creditors for severe austerity measures in return for a modest debt write-off, raising hopes that a rescue deal could be signed at an emergency meeting of EU leaders on Sunday….Athens has put forward a 13-page document detailing reforms and public spending cuts worth €13bn with the aim of securing a third bailout from creditors that would raise €53.5bn and allow it to stay inside the currency union.
A cabinet meeting signed off the reform package after ministers agreed that the dire state of the economy and the debilitating closure of the country’s banks meant it had no option but to agree to almost all the creditors terms.”

(Phillip Inman, Graeme Wearden and Helena Smith: ”; 9 July 2015 Greece debt crisis: Athens accepts harsh austerity as bailout deal nears “Greek cabinet backs a 13-page package of reforms and spending cuts worth €13bn to secure third bailout and modest debt writeoff http://www.theguardian.com/business/2015/jul/09/greece-debt-crisis-athens-accepts-harsh-austerity-as-bailout-deal-nears)

As even the Guardian concluded: “Generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone:

“Greece and the rest of the eurozone have finally reached an agreement that could lead to a third bailout and keep the country in the eurozone.
Greek PM Alexis Tsipras conceded to a further swathe of austerity measures and economic reforms after more than 16 hours of negotiations in Brussels. He has agreed to immediately pass laws to further reform the tax and pension system, liberalise the labour market, and open up closed professions. Sunday trading laws will be relaxed, and even milk producers and bakers will be deregulated.
The Financial Times has dubbed it:
‘The most intrusive economic supervision programme ever mounted in the EU’.
Greece was forced to accept these measures after Germany piled intense pressure, as a price for a new deal. EU officials told us that Tsipras was subjected to “mental waterboarding” in closed-door meetings with Angela Merkel, Donald Tusk and Francois Hollande.
The plan must now be approved by the Athens parliament by Wednesday, and then voted through various national parliaments. If agreement is reached, talks can then begin towards a a new three-year bailout worth up to €86bn (£61bn), accompanied by further monitoring by Greece’s creditors.
The deal appears to end Greece’s five-month battle with its creditors, which has gripped the eurozone, dominated the political agenda and alarmed the markets.
Emerging from the summit, Tsipras admitted it had been tough – but insisted he had won concessions on debt relief (sometime in the future) as well as the medium-term funding plan.
He also managed to persuade the eurozone that a new investment fund, that will manage and sell off €50bn Greek assets, would be based in Athens not Luxembourg.
But generally, Tsipras appears to have finally capitulated in the face of threats that Greece would be ejected from the eurozone.”

(Graeme Wearden and Helen Davidson. “Greek debt crisis: deal reached after marathon all-night summit – as it happened”. The Guardian 13 July 2015;
http://www.theguardian.com/business/live/2015/jul/12/greek-debt-crisis-eu-leaders-meeting-cancelled-no-deal-live)

Yanis Varoufakis summed the story up to that point as a “coup”:

“The recent Euro Summit is indeed nothing short of the culmination of a coup. In 1967 it was the tanks that foreign powers used to end Greek democracy. In my interview with Philip Adams, on ABC Radio National’s LNL, I claimed that in 2015 another coup was staged by foreign powers using, instead of tanks, Greece’s banks. Perhaps the main economic difference is that, whereas in 1967 Greece’s public property was not targeted, in 2015 the powers behind the coup demanded the handing over of all remaining public assets, so that they would be put into the servicing of our un-payble, unsustainable debt.”

(Varoufakis, Y. “On the Euro Summit’s Statement on Greece: First thoughts”; 14 July 2015. http://yanisvaroufakis.eu/2015/07/14/on-the-euro-summits-statement-on-greece-first-thoughts/)

While the Referendum gave a clear signal that the Greek people had rejected the spirit of compromise being forced by the Western Banks – the questions had been framed deliberately imprecisely. It did not ask the Greek people to consider the option of leaving the Eurozone as such. This allowed the Tsipras government to posture it did “not have a mandate” to reject the harsh terms of the Troika and move Greece to leave the Eurozone.

Inevitably this will lead to a rupture of the Syriza United Front:

“…. Syriza, which is in coalition with the rightwing populist Independent party, is expected to meet huge opposition from within its own ranks and from trade unions and youth groups that viewed the referendum as a vote against any austerity.

Panagiotis Lafazanis, the energy minister and influential hard-leftist, who on Wednesday welcomed a deal for a new €2bn gas pipeline from Russia, has ruled out a new tough austerity package. Lafazanis represents around 70 Syriza MPs who have previously taken a hard line against further austerity measures and could yet wreck any top-level agreement.”

(Phillip Inman, Graeme Wearden and Helena Smith: Guardian Ibid; 9 July 2015)

The concession made by Greece in accepting the further round of “austerity” measures is huge:

“The new proposals include sweeping reforms to VAT to raise 1% of GDP and moving more items to the 23% top rate of tax, including restaurants – a key battleground before. Greece has also dropped its opposition to abolishing the lower VAT rate on its islands, starting with the most popular tourist attractions. Athens also appears to have made significant concessions on pensions, agreeing to phase out solidarity payments for the poorest pensioners by December 2019, a year earlier than planned. It would also raise the retirement age to 67 by 2022. And it has agreed to raise corporation tax to 28%, as the IMF wanted, not 29%, as previously targeted.
Greece is also proposing to cut military spending by €100m in 2015 and by €200m in 2016, and implement changes to reform and improve tax collection and fight tax evasion. It will also press on with privatisation of state assets including regional airports and ports. Some government MPs had vowed to reverse this.
In return, Greece appears to be seeking a three-year loan deal worth €53.5bn…….
Several EU leaders said the troika of creditors – the European commission, the International Monetary Fund and the European Central Bank – must also make concessions to secure Greece’s future inside the eurozone.
Donald Tusk, who chairs the EU summits, said European officials would make an effort to address Greece’s key request for a debt write-off. …
On Thursday, the German finance minister, Wolfgang Schäuble said the possibility of some kind of debt relief would be discussed over coming days, although he cautioned it may not provide much help.
“The room for manoeuvre through debt reprofiling or restructuring is very small,” he said.
Greece has long argued its debt is too high to be paid back and that the country requires some form of debt relief. The IMF agrees, but key European states such as Germany have resisted the idea…..
German ECB governing council member Jens Weidmann argued Greek banks should not get more emergency credit from the central bank unless a bailout deal is struck.
 He said it was up to eurozone governments and Greek leaders themselves to rescue Greece.
The central bank “has no mandate to safeguard the solvency of banks and governments,” he said in a speech.
The ECB capped emergency credit to Greek banks amid doubt over whether the country will win further rescue loans from other countries. The banks closed and limited cash withdrawals because they had no other way to replace deposits.
Weidmann said he welcomed the fact that central bank credit “is no longer being used to finance capital flight caused by the Greek government.”
http://www.theguardian.com/business/2015/jul/09/greece-debt-crisis-athens-accepts-harsh-austerity-as-bailout-deal-nears

11. CONCLUSION

At the time of writing the final scenes in the disintegrating Syriza “United Front’ parliament have yet to be played out.

However the shrewdest elements of the non-Marxist-Leninist left recognize that the time is long due, for Greece to exit the European Union to regain its own measure of independence. Many on the left agree that this will be hard.

The leading proponent of this has been Costas Lapavitas – a MP in the Greek Parliament but not a member of Syriza – and radical economist. His view has been put in several books and articles for example these cited here: ([1], Lapvitas, C. Interview with Sebastien Budgen: ‘Greece: Phase Two”; in Jacobin. At https://www.jacobinmag.com/2015/03/lapavitsas-varoufakis-grexit-syriza/ [2] Costas Lapavitsas: The Syriza strategy has come to an end’. Interview with Press Project and Der Spiegel; http://www.thepressproject.gr/details_en.php?aid=74530. [3[ The crisis of the Eurozone”, July 10, 2010 ; Greek Left Review. At https://greekleftreview.wordpress.com/2010/07/10/the-crisis-of-the-eurozone/)

Although this view has certainly been challenged (Bach, Paula. “Exit the Euro? Polemic with Greek Economist Costas Lapavitsas.” Left Voice News Project, at: http://leftvoice.org/Exit-the-Euro-Polemic-with-Greek-Economist-Costas-Lapavitsas).

Marxist-Leninists argue that leaving the imperialist bloc of the EU – would be the correct policy for the working class, peasantry and poor sections of Greece.

When asked on how the Anasintaxi Organization sees the future events, they replied:

“Both reformist parties (“K”KE and SYRIZA) have accepted the Greek capital’s present strategic choice to maintain the country in the EU and the Eurozone… In order to contribute to the growth of the working class struggles and the rise of the revolutionary movement, the Movement for Reorganization of KKE (1918-1955) is striving, under very unfavorable conditions, to achieve the following:

A) Together with the reorganization, the re-birth of KKE (1918-1955) and the ideological-political-organizational unity of the Greek communists on basis of Marxism-Leninism-Stalinism and the dissemination of the Marxist conception of socialism-communism;
it actively supports and participates in the struggle of the working class and all the toilers against the reduction of salaries and pensions, against the deterioration of their position in general and supports all demands that aim to defend their (economic, trade-union, social and political) class interests in opposition to the foreign and Greek capital and in particular, the EU monopolies which impose directly the current austerity measures.

B) The formation of united, massive and truly independent trade unions whose aim will be the resistance to the extreme neo-liberal policy of austerity and the further development of the workers’ and people’s struggles combined with the struggle against nationalism-racism-fascism-Nazism (all very dangerous enemies of the working class and the people) as well as “anti-Germanism” and “anti-Hellenism” (the two sides of the bourgeois nationalism) incited, during this period, by the nationalist circles of the two countries. At the same time, these new trade unions will put forward the demand for the exit of the country from the imperialist EU not only because of the increasing dependence and the deterioration of the Greece-EU relations at the expense of our country but also because of the fact that the economic policy and the hard, anti-popular measures are directly imposed by Brussels.

C) The cooperation between the consistent left-wing, anti-imperialist and anti-fascist forces that will aim at the formation of a massive, anti-fascist, popular, front that will fight against the dependence on imperialism, in general, and the exit of Greece from the EU, the Eurozone and NATO.”

(Αναρτήθηκε από Anasintaxi Organization ‘Some questions and answers about the current situation in Greece’; Article to be published in “Unity & Struggle” (Extended version of an interview given to the comrades of Iran); march 30; 2015. At http://anasintaxi-en.blogspot.ca/2015/02/some-questions-and-answers-about.html

APPENDIX: Select Chronology 1975 to 2015:
Amended from BBC version at: http://www.bbc.com/news/world-europe-17373216

1975 – New constitution declares Greece a parliamentary republic with some executive powers vested in a president.
1980 – Conservative Constantine Karamanlis elected president.
1981 – Greece joins EU. Andreas Papandreou’s Socialist Party (Pasok) wins elections.
1985 – President Karamanlis resigns in protest at government plans to reduce powers of president. Christos Sartzetakis becomes head of state.
1990 – Centre-right New Democracy party forms government under party leader Constantine Mitsotakis
1993 – Election returns Papandreou to power for PASOK.
2004 March – Conservative New Democracy party led by Costas Karamanlis wins general election, ending over a decade of Pasok government.
2005 April – Parliament ratifies EU constitution.
2005 December – Amid protest strikes by transport workers, parliament approves changes to labour laws, including an end to jobs for life in the public sector. The plans sparked industrial action in June.
2006 March – Public sector workers strike over pay and in protest at government plans to scrap job security laws and intensify privatisation.
2007 September – Minister Karamanlis wins a narrow majority in the poll. He says he now has a mandate for more reforms but also pledges to make national unity a priority.
2008 March – Parliament narrowly passes government’s controversial pension reform bill in face of general public sector strike and mass protests.
2008 December – Students and young people take to city streets in nationwide protests and riots over the police killing of a 15-year-old boy in Athens. Major public-sector strikes coincide to increase pressure on the government over its economic policies.

Economic meltdown
2002 January – Euro replaces drachma.
2004 December – European Commission issues formal warning after Greece found to have falsified budget deficit data in run-up to joining eurozone.
2009 October – Opposition Pasok socialist party wins snap election called by PM Karamanlis. George Papandreou takes over as new prime minister.

Debt crisis
2009 December – Greece’s credit rating is downgraded by one of world’s three leading rating agencies amid fears the government could default on its ballooning debt. PM Papandreou announces programme of tough public spending cuts.
2010 January- March – Government announces two more rounds of tough austerity measures, and faces mass protests and strikes.
2010 April/May – Fears of a possible default on Greece’s debts prompt eurozone countries to approve a $145bn (110bn euros; £91bn) rescue package for the country, in return for a round of even more stringent austerity measures. Trade unions call a general strike.
2011 June – 24-hour general strike. Tens of thousands of protesters march on parliament to oppose government efforts to pass new austerity laws.

Crisis deepens
2011 July – European Union leaders agree a major bailout for Greece over its debt crisis by channelling 109bn euros through the European Financial Stability Facility.
All three main credit ratings agencies cut Greece’s rating to a level associated with a substantial risk of default.
2011 October – Eurozone leaders agree a 50% debt write-off for Greece in return for further austerity measures. PM George Papandreou casts the deal into doubt by announcing a referendum on the rescue package.
2011 November – Faced with a storm of criticism over his referendum plan, Mr Papandreou withdraws it and then announces his resignation.
Lucas Papademos, a former head of the Bank of Greece, becomes interim prime minister of a New Democracy/Pasok coalition with the task of getting the country back on track in time for elections scheduled provisionally for the spring of 2012.

New bailout plan
2012 February – Against a background of violent protests on the streets of Athens, the Greek parliament approves a new package of tough austerity measures agreed with the EU as the price of a 130bn euro bailout.
2012 March – Greece reaches a “debt swap” deal with its private-sector lenders, enabling it to halve its massive debt load.
2012 May – Early parliamentary elections see support for coalition parties New Democracy and Pasok slump, with a increase in support for anti-austerity parties of the far left and right. The three top-ranking parties fail to form a working coalition and President Papoulias calls fresh elections for 17 June. The far-right Golden Dawn party based its 2012 election campaign on hostility towards immigrants
2012 June – Further parliamentary elections boost New Democracy, albeit leaving it without a majority. Leader Antonis Samaras assembles a coalition with third-placed Pasok and smaller groups to pursue the austerity programme.

Anti-austerity protests
2012 September – Trade unions stage 24-hour general strike against government austerity measures. Police fire tear gas to disperse anarchist rally outside parliament.
2012 October – Parliament passes a 13.5bn-euro austerity plan aimed at securing the next round of EU and IMF bailout loans; the package – the fourth in three years – includes tax rises and pension cuts.
2013 January – Unemployment rises to 26.8% – the highest rate in the EU.
2013 April – Youth unemployment climbs to almost 60%.
Public broadcaster closed
2013 June – The government announces without warning that it is suspending the state broadcaster ERT in a bid to save money. The decision gives rise to mass protests and a 24-hour strike.
2013 August – New state broadcaster EDT is launched.
2013 September – Government launches crackdown on far-right Golden Dawn party. Party leader Nikolaos Michaloliakos and five other Golden Dawn MPs are arrested on charges including assault, money laundering and belonging to a criminal organisation.
2013 December – Parliament passes 2014 budget, which is predicated on a return to growth after six years of recession. Prime Minister Samaras hails this as the first decisive step towards exiting the bailout.
2014 February – Greek unemployment reaches a record high of 28%.
2014 March – Parliament narrowly approves a big reform package that will open more retail sectors to competition, part of a deal between Greece and its international lenders.
2014 April – Eurozone finance ministers say they’ll release more than 8bn euros of further bailout funds to Greece.
Greece raises nearly four billion dollars from world financial markets in its first sale of long-term government bonds for four years, in a move seen as an important step in the country’s economic recovery.

Left in power
2014 May – Anti-austerity, radical leftist Syriza coalition wins European election with 26.6% of the vote.
2014 December – Parliament’s failure to elect a new president sparks a political crisis and prompts early elections.
2015 January – Alexis Tsipras of Syriza becomes prime minister after winning parliamentary elections, and forms a coalition with the nationalist Independent Greeks party.
2015 February – The government negotiates a four-month extension to Greece’s bailout in return for dropping key anti-austerity measures and undertaking a eurozone-approved reform programme.
2015 June – European Central Bank ends emergency funding. Greece closes banks, imposes capital controls and schedules referendum on European Union bailout terms for 5 July.Government reinstates former state broadcaster ERT as promised in Syriza manifesto.
2015 July – Greece becomes first developed country to miss a payment to the International Monetary Fund, having already delayed it

Anasintaxi (KKE 1918-55): The New Bailout Agreement

 

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  • Crude, barbarous trampling on the national sovereignty of the country by the EU imperialists
  • Violent enslavement of the Greek people with the support of the subservient bourgeois class and its parties (great-bourgeois, reformist, fascist)

The new bailout agreement constitutes a complete surrender to the fascist extortion of the EU representatives (primarily of Germany and its satellite states) and is in total opposition to the will of the Greek people expressed with the NO vote in the recent referendum; in the name of the detrimental membership of the country in the Eurozone.

It cannot be left unnoticed that there were and there still are plans made by the EU imperialists to remove the elected government and replace it with another one without elections as it was the case with the government led by the former banker Papadimos in 2011.

The only path for the working class and the people is the one of class struggle against the imperialist intervention in the internal affairs of the country and the new harsh, barbarous, anti-popular measures.  At the same time, the plans of forming a government without elections, clearly a fascist constitutional violation, should be disrupted.  The central slogan of this struggle cannot be any other than the immediate exit from EU-EMU-Eurozone.

Movement for the Reorganisation of KKE 1918-55

Source

Fidel Castro on Human Rights

cuba communism castro dictatorship crisis

“Mr. President, distinguished representatives: Human rights are often spoken of, but we must also speak of humanity’s rights. Why should some people walk around barefoot so that others may travel in expensive cars? Why should some live only thirty-five years so that others may live seventy? Why should some be miserably poor so that others may be exaggeratedly rich? I speak on behalf of the children in the world who do not even have a piece of bread. I speak on behalf of the sick who lack medicine. I speak on behalf of those who have been denied the right to life and human dignity.”

 – Fidel Castro, message to the U.N. General Assembly in 1979, quoted in “The Fidel Castro Reader,” p. 415.

Compilation of Interviews and Correspondence with J.V. Stalin

joseph-stalin-1949

TABLE OF CONTENTS

Reply to the Letter of Mr. Richardson, Representative of the Associated Press News Agency
The Importance and Tasks of the Complaints-Bureaus
Marxism versus Liberalism: An Interview with H.G. Wells
Interview Between J. Stalin and Roy Howard
Replies to the Questions of Ralph V. Barnes
Talk With the German Author Emil Ludwig
Mr. Campbell Stretches the Truth
Talk With Colonel Robins
Greetings to the Red Army on its Fifteenth Anniversary
Reply to A Letter From Mr. Barnes

Reply to the Letter of Mr. Richardson, Representative of the Associated Press News Agency

To Mr. Richardson,

This is not the first time that false rumours that I am ill are circulating in the bourgeois press. Obviously, there are people to whose interest it is that I should fall ill seriously and for a long time; if not worse. Perhaps it is not very tactful of me, but unfortunately I have no data capable of gratifying these gentlemen.

Sad though it may be, nothing will avail against facts, viz., that I am in perfect health. As for Mr. Zondeck, he can attend to the health of other comrades, which is why he has been invited to come to the U.S.S.R.

J. Stalin

* In a letter dated March 25, 1932, addressed to J.V.Stalin, Mr Richardson , representative of Associated Press news agency asked if about the truth of the rumors in the foreign press that the Berlin physician m Zondeck, had been invited to Moscow to treat J.V.Stalin

The Importance and Tasks of the Complaints-Bureaus

The work of the Complaints Bureaus (1) is of tremendous importance in the struggle to remove shortcomings in our Party, Soviet, economic, trade-union and Komsomol apparatuses, in improving our administrative apparatus.

Lenin said that without an apparatus we should have perished long ago, and that without a systematic, stubborn struggle to improve the apparatus we should certainly perish. This means that resolute and systematic struggle against conservatism, bureaucracy and red tape in our apparatus is an essential task of the Party, the working class and all the working people of our country.

The tremendous importance of the Complaints Bureaus consists in their being a serious means of carrying out Lenin’s behest concerning the struggle to improve the apparatus.

It is indisputable that the Complaints Bureaus have considerable achievements to their credit in this field.

The task is to consolidate the results attained and to achieve decisive successes in this matter. There can be no doubt that if the Complaints Bureaus rally around them all the more active sections of the workers and collective farmers, drawing them into the work of administering the state and attentively heeding the voice of the working people both within and without the Party, these decisive successes will be won.

Let us hope that the five-day review of the work of the Complaints Bureaus will serve as a stimulus for further expansion of their work along the line indicated by our teacher Lenin.

Notes

(1) The Complaints Bureau was set up in April 1919 under the People’s Commissariat of State Control, which in 1920 was changed to the Peoples’ Commissariat of Workers’ And peasant’ Inspection. The tasks and scoop of the work of the Central Bureau of Complaints & Applications were defined by a regulation dated May 4, 1919, and those of the local departments the Central Bureau by a regulation dated May 24th, 1919, published over the signature of Stalin, People’s Commissar of State Control. From the day they were formed the Central and local bureaus did much work in investigating and checking complaints and statements of working people, enlisting in this work an extensive active of workers and peasants. From February 1934 the Bureau of Complaints and Applications was included in the system of the Soviet Control Commission under the Council of People’s Commissariats, and from September 1940 it has formed a department of the Peoples Commissariat (subsequently Ministry) of State Control of the USSR.

Stalin’s article, “The Importance of the USSR Complaints Bureaus” was written in connection with the all-Union five-day review and checking of the work of the bureaus carried out on April 9-14th, 1932, by a decision of the Presidium of the Central Control Commission of the CPSU(B), and the Collegium of the People’s Commissariat of the USSR.

Marxism versus Liberalism: An Interview with H.G. Wells

23 July 1934

Wells: I am very much obliged to you, Mr. Stalin, for agreeing to see me. I was in the United States recently. I had a long conversation with President Roosevelt and tried to ascertain what his leading ideas were. Now I have come to ask you what you are doing to change the world. . .

Stalin: Not so very much.

Wells: I wander around the world as a common man and, as a common man, observe what is going on around me.

Stalin: Important public men like yourself are not “common men”. Of course, history alone can show how important this or that public man has been; at all events, you do not look at the world as a “common man.”

Wells: I am not pretending humility. What I mean is that I try to see the world through the eyes of the common man, and not as a party politician or a responsible administrator. My visit to the United States excited my mind. The old financial world is collapsing; the economic life of the country is being reorganized on new lines. Lenin said : “We must learn to do business, learn this from the capitalists.”

Today the capitalists have to learn from you, to grasp the spirit of socialism. It seems to me that what is taking place in the United States is a profound reorganisation, the creation of planned, that is, socialist, economy. You and Roosevelt begin from two different starting points. But is there not a relation in ideas, a kinship of ideas, between Moscow and Washington? In Washington I was struck by the same thing I see going on here; they are building offices, they are creating a number of state regulation bodies, they are organising a long-needed Civil Service. Their need, like yours, is directive ability.

Stalin: The United States is pursuing a different aim from that which we are pursuing in the U.S.S.R.

The aim which the Americans are pursuing, arose out of the economic troubles, out of the economic crisis. The Americans want to rid themselves of the crisis on the basis of private capitalist activity, without changing the economic basis. They are trying to reduce to a minimum the ruin, the losses caused by the existing economic system. Here, however, as you know, in place of the old, destroyed economic basis, an entirely different, a new economic basis has been created. Even if the Americans you mention partly achieve their aim, i.e., reduce these losses to a minimum, they will not destroy the roots of the anarchy which is inherent in the existing capitalist system. They are preserving the economic system which must inevitably lead, and cannot but lead, to anarchy in production. Thus, at best, it will be a matter, not of the reorganisation of society, not of abolishing the old social system which gives rise to anarchy and crises, but of restricting certain of its excesses. Subjectively, perhaps, these Americans think they are reorganising society; objectively, however, they are preserving the present basis of society.

That is why, objectively, there will be no reorganisation of society.

Nor will there be planned economy. What is planned economy? What are some of its attributes? Planned economy tries to abolish unemployment. Let us suppose it is possible, while preserving the capitalist system, to reduce unemployment to a certain minimum.

But surely, no capitalist would ever agree to the complete abolition of unemployment, to the abolition of the reserve army of unemployed, the purpose of which is to bring pressure on the labour market, to ensure a supply of cheap labour. Here you have one of the rents in the “planned economy” of bourgeois society. Furthermore, planned economy presupposes increased output in those branches of industry which produce goods that the masses of the people need particularly. But you know that the expansion of production under capitalism takes place for entirely different motives, that capital flows into those branches of economy in which the rate of profit is highest. You will never compel a capitalist to incur loss to himself and agree to a lower rate of profit for the sake of satisfying the needs of the people. Without getting rid of the capitalists, without abolishing the principle of private property in the means of production, it is impossible to create planned economy.

Wells: I agree with much of what you have said.

But I would like to stress the point that if a country as a whole adopts the principle of planned economy, if the government, gradually, step by step, begins consistently to apply this principle, the financial oligarchy will at last be abolished and socialism, in the Anglo-Saxon meaning of the word, will be brought about. The effect of the ideas of Roosevelt’s “New Deal” is most powerful, and in my opinion they are socialist ideas. It seems to me that instead of stressing the antagonism between the two worlds, we should, in the present circumstances, strive to establish a common tongue for all the constructive forces.

Stalin: In speaking of the impossibility of realising the principles of planned economy while preserving the economic basis of capitalism, I do not in the least desire to belittle the outstanding personal qualities of Roosevelt, his initiative, courage and determination. Undoubtedly, Roosevelt stands out as one of the strongest figures among all the captains of the contemporary capitalist world. That is why I would like, once again, to emphasize the point that my conviction that planned economy is impossible under the conditions of capitalism, does not mean that I have any doubts about the personal abilities, talent and courage of President Roosevelt. But if the circumstances are unfavourable, the most talented captain cannot reach the goal you refer to. .

Theoretically, of course, the possibility of marching gradually, step by step, under the conditions of capitalism, towards the goal which you call socialism in the Anglo-Saxon meaning of the word, is not precluded. .

But what will this “socialism” be? At best, bridling to some extent, the most unbridled of individual representatives of capitalist profit, some increase in the application of the principle of regulation in national economy. That is all very well. But as soon as Roosevelt, or any other captain in the contemporary bourgeois world, proceeds to undertake something serious against the foundation of capitalism, he will inevitably suffer utter defeat. The banks, the industries, the large enterprises, the large farms are not in Roosevelt’s hands. All these are private property. The railroads, the mercantile fleet, all these belong to private owners. And, finally, the army of skilled workers, the engineers, the technicians, these too are not at Roosevelt’s command, they are at the command of the private owners; they all work for the private owners. We must not forget the functions of the State in the bourgeois world.

The State is an institution that organises the defence of the country, organises the maintenance of “order”; it is an apparatus for collecting taxes. The capitalist State does not deal much with economy in the strict sense of the word; the latter is not in the hands of the State. On the contrary, the State is in the hands of capitalist economy. That is why I fear that in spite of all his energies and abilities, Roosevelt will not achieve the goal you mention, if indeed that is his goal. Perhaps, in the course of several generations it will be possible to approach this goal somewhat; but I personally think that even this is not very probable. .

Wells: Perhaps, I believe more strongly in the economic interpretation of politics than you do. Huge forces driving towards better organisation, for the better functioning of the community, that is, for socialism, have been brought into action by invention and modern science. Organisation, and the regulation of individual action, have become mechanical necessities, irrespective of social theories. If we begin with the State control of the banks and then follow with the control of transport, of the heavy industries of industry in general, of commerce, etc., such an all-embracing control will be equivalent to the State ownership of all branches of national economy. This will be the process of socialisation. Socialism and individualism are not opposites like black and white. .

There are many intermediate stages between them. .

There is individualism that borders on brigandage, and there is discipline and organisation that are the equivalent of socialism. The introduction of planned economy depends, to a large degree, upon the organisers of economy, upon the skilled technical intelligentsia, who, step by step, can be converted to the socialist principles of organisation. And this is the most important thing. Because organisation comes before socialism. It is the more important fact. .

Without organisation the socialist idea is a mere idea. .

Stalin: There is no, nor should there be, irreconcilable contrast between the individual and the collective, between the interests of the individual person and the interests of the collective. There should be no such contrast, because collectivism, socialism, does not deny, but combines individual interests with the interests of the collective. Socialism cannot abstract itself from individual interests. Socialist society alone can most fully satisfy these personal interests. More than that; socialist society alone can firmly safeguard the interests of the individual. In this sense there is no irreconcilable contrast between “individualism” and socialism. But can we deny the contrast between classes, between the propertied class, the capitalist class, and the toiling class, the proletarian class?

On the one hand we have the propertied class which owns the banks, the factories, the mines, transport, the plantations in colonies. These people see nothing but their own interests, their striving after profits.

They do not submit to the will of the collective; they strive to subordinate every collective to their will. On the other hand we have the class of the poor, the exploited class, which owns neither factories nor works, nor banks, which is compelled to live by selling its labour power to the capitalists which lacks the opportunity to satisfy its most elementary requirements. How can such opposite interests and strivings be reconciled? As far as I know, Roosevelt has not succeeded in finding the path of conciliation between these interests. And it is impossible, as experience has shown. Incidentally, you know the situation in the United States better than I do as I have never been there and I watch American affairs mainly from literature. But I have some experience in fighting for socialism, and this experience tells me that if Roosevelt makes a real attempt to satisfy the interests of the proletarian class at the expense of the capitalist class, the latter will put another president in his place. The capitalists will say : Presidents come and presidents go, but we go on forever; if this or that president does not protect our interests, we shall find another. What can the president oppose to the will of the capitalist class?

Wells: I object to this simplified classification of mankind into poor and rich. Of course there is a category of people which strive only for profit. But are not these people regarded as nuisances in the West just as much as here? Are there not plenty of people in the West for whom profit is not an end, who own a certain amount of wealth, who want to invest and obtain a profit from this investment, but who do not regard this as the main object? They regard investment as an inconvenient necessity. Are there not plenty of capable and devoted engineers, organisers of economy, whose activities are stimulated by something other than profit? In my opinion there is a numerous class of capable people who admit that the present system is unsatisfactory and who are destined to play a great role in future socialist society. During the past few years I have been much engaged in and have thought of the need for conducting propaganda in favour of socialism and cosmopolitanism among wide circles of engineers, airmen, military technical people, etc. It is useless to approach these circles with two-track class war propaganda. These people understand the condition of the world. They understand that it is a bloody muddle, but they regard your simple class-war antagonism as nonsense.

Stalin: You object to the simplified classification of mankind into rich and poor. Of course there is a middle stratum, there is the technical intelligentsia that you have mentioned and among which there are very good and very honest people. Among them there are also dishonest and wicked people, there are all sorts of people among them, But first of all mankind is divided into rich and poor, into property owners and exploited; and to abstract oneself from this fundamental division and from the antagonism between poor and rich means abstracting oneself from the fundamental fact. I do not deny the existence of intermediate middle strata, which either take the side of one or the other of these two conflicting classes, or else take up a neutral or semi-neutral position in this struggle. But, I repeat, to abstract oneself from this fundamental division in society and from the fundamental struggle between the two main classes means ignoring facts. The struggle is going on and will continue. The outcome will be determined by the proletarian class, the working class.

Wells: But are there not many people who are not poor, but who work and work productively?

Stalin: Of course, there are small landowners, artisans, small traders, but it is not these people who decide the fate of a country, but the toiling masses, who produce all the things society requires.

Wells: But there are very different kinds of capitalists. There are capitalists who only think about profit, about getting rich; but there are also those who are prepared to make sacrifices. Take old Morgan for example. He only thought about profit; he was a parasite on society, simply, he merely accumulated wealth. But take Rockefeller. He is a brilliant organiser; he has set an example of how to organise the delivery of oil that is worthy of emulation. Or take Ford. Of course Ford is selfish. But is he not a passionate organiser of rationalised production from whom you take lessons? I would like to emphasise the fact that recently an important change in opinion towards the U.S.S.R. has taken place in English speaking countries. The reason for this, first of all, is the position of Japan and the events in Germany. But there are other reasons besides those arising from international politics. There is a more profound reason namely, the recognition by many people of the fact that the system based on private profit is breaking down. Under these circumstances, it seems to me, we must not bring to the forefront the antagonism between the two worlds, but should strive to combine all the constructive movements, all the constructive forces in one line as much as possible. It seems to me that I am more to the Left than you, Mr. Stalin; I think the old system is nearer to its end than you think.

Stalin: In speaking of the capitalists who strive only for profit, only to get rich, I do not want to say that these are the most worthless people, capable of nothing else. Many of them undoubtedly possess great organising talent, which I do not dream of denying. We Soviet people learn a great deal from the capitalists. And Morgan, whom you characterise so unfavourably, was undoubtedly a good, capable organiser. But if you mean people who are prepared to reconstruct the world, of course, you will not be able to find them in the ranks of those who faithfully serve the cause of profit. We and they stand at opposite poles. You mentioned Ford. Of course, he is a capable organiser of production. But don’t you know his attitude to the working class?

Don’t you know how many workers he throws on the street? The capitalist is riveted to profit; and no power on earth can tear him away from it. Capitalism will be abolished, not by “organisers” of production not by the technical intelligentsia, but by the working class, because the aforementioned strata do not play an independent role. The engineer, the organiser of production does not work as he would like to, but as he is ordered, in such a way as to serve the interests of his employers. There are exceptions of course; there are people in this stratum who have awakened from the intoxication of capitalism. The technical intelligentsia can, under certain conditions, perform miracles and greatly benefit mankind. But it can also cause great harm. We Soviet people have not a little experience of the technical intelligentsia.

After the October Revolution, a certain section of the technical intelligentsia refused to take part in the work of constructing the new society; they opposed this work of construction and sabotaged it.

We did all we possibly could to bring the technical intelligentsia into this work of construction; we tried this way and that. Not a little time passed before our technical intelligentsia agreed actively to assist the new system. Today the best section of this technical intelligentsia are in the front rank of the builders of socialist society. Having this experience we are far from underestimating the good and the bad sides of the technical intelligentsia and we know that on the one hand it can do harm, and on the other hand, it can perform “miracles.” Of course, things would be different if it were possible, at one stroke, spiritually to tear the technical intelligentsia away from the capitalist world. But that is utopia.

Are there many of the technical intelligentsia who would dare break away from the bourgeois world and set to work reconstructing society? Do you think there are many people of this kind, say, in England or in France? No, there are few who would be willing to break away from their employers and begin reconstructing the world.

Besides, can we lose sight of the fact that in order to transform the world it is necessary to have political power? It seems to me, Mr. Wells, that you greatly underestimate the question of political power, that it entirely drops out of your conception.

What can those, even with the best intentions in the world, do if they are unable to raise the question of seizing power, and do not possess power? At best they can help the class which takes power, but they cannot change the world themselves. This can only be done by a great class which will take the place of the capitalist class and become the sovereign master as the latter was before. This class is the working class. Of course, the assistance of the technical intelligentsia must be accepted; and the latter in turn, must be assisted. But it must not be thought that the technical intelligentsia can play an independent historical role. The transformation of the world is a great, complicated and painful process. For this task a great class is required. Big ships go on long voyages.

Wells: Yes, but for long voyages a captain and navigator are required.

Stalin: That is true; but what is first required for a long voyage is a big ship. What is a navigator without a ship? An idle man, Wells : The big ship is humanity, not a class.

Stalin: You, Mr. Wells, evidently start out with the assumption that all men are good. I, however, do not forget that there are many wicked men. I do not believe in the goodness of the bourgeoisie.

Wells: I remember the situation with regard to the technical intelligentsia several decades ago. At that time the technical intelligentsia was numerically small, but there was much to do and every engineer, technician and intellectual found his opportunity. That is why the technical intelligentsia was the least revolutionary class. Now, however, there is a superabundance of technical intellectuals, and their mentality has changed very sharply. The skilled man, who would formerly never listen to revolutionary talk, is now greatly interested in it. Recently I was dining with the Royal Society, our great English scientific society. The President’s speech was a speech for social planning and scientific control. Thirty years ago, they would not have listened to what I say to them now. Today, the man at the head of the Royal Society holds revolutionary views and insists on the scientific reorganisation of human society. Mentality changes. Your class-war propaganda has not kept pace with these facts.

Stalin: Yes, I know this, and this is to be explained by the fact that capitalist society is now in a cul-de sac. The capitalists are seeking, but cannot find a way out of this cul-de-sac that would be compatible with the dignity of this class, compatible with the interests of this class. They could, to some extent, crawl out of the crisis on their hands and knees, but they cannot find an exit that would enable them to walk out of it with head raised high, a way out that would not fundamentally disturb the interests of capitalism. This, of course, is realised by wide circles of the technical intelligentsia. A large section of it is beginning to realise the community of its interests with those of the class which is capable of pointing the way out of the cul-de-sac.

Wells: You of all people know something about revolutions, Mr. Stalin, from the practical side. Do the masses ever rise? Is it not an established truth that all revolutions are made by a minority?

Stalin: To bring about a revolution a leading revolutionary minority is required; but the most talented, devoted and energetic minority would be helpless if it did not rely upon the at least passive support of millions.

Wells: At least passive? Perhaps sub-conscious?

Stalin: Partly also the semi-instinctive and semiconscious, but without the support of millions, the best minority is impotent.

Wells: I watch communist propaganda in the West and it seems to me that in modern conditions this propaganda sounds very old-fashioned, because it is insurrectionary propaganda. Propaganda in favour of the violent overthrow of the social system was all very well when it was directed against tyranny. But under modern conditions, when the system is collapsing anyhow, stress should be laid on efficiency, on competence, on productiveness, and not on insurrection.

It seems to me that the insurrectionary note is obsolete. The communist propaganda in the West is a nuisance to constructive-minded people.

Stalin: Of course the old system is breaking down and decaying. That is true. But it is also true that new efforts are being made by other methods, by every means, to protect, to save this dying system.

You draw a wrong conclusion from a correct postulate.

You rightly state that the old world is breaking down.

But you are wrong in thinking that it is breaking down of its own accord. No, the substitution of one social system for another is a complicated and long revolutionary process. It is not simply a spontaneous process, but a struggle, it is a process connected with the clash of classes. Capitalism is decaying, but it must not be compared simply with a tree which has decayed to such an extent that it must fall to the ground of its own accord. No, revolution, the substitution of one social system for another, has always been a struggle, a painful and a cruel struggle, a life and death struggle. And every time the people of the new world came into power they had to defend themselves against the attempts of the old world to restore the old power by force; these people of the new world always had to be on the alert, always had to be ready to repel the attacks of the old world upon the new system.

Yes, you are right when you say that the old social system is breaking down; but it is not breaking down of its own accord. Take Fascism for example.

Fascism is a reactionary force which is trying to preserve the old system by means of violence. What will you do with the fascists? Argue with them? Try to convince them? But this will have no effect upon them at all. Communists do not in the least idealise the methods of violence. But they, the Communists, do not want to be taken by surprise, they cannot count on the old world voluntarily departing from the stage, they see that the old system is violently defending itself, and that is why the Communists say to the working class : Answer violence with violence; do all you can to prevent the old dying order from crushing you, do not permit it to put manacles on your hands, on the hands with which you will overthrow the old system. As you see, the Communists regard the substitution of one social system for another, not simply as a spontaneous and peaceful process, but as a complicated, long and violent process. Communists cannot ignore facts.

Wells: But look at what is now going on in the capitalist world. The collapse is not a simple one; it is the outbreak of reactionary violence which is degenerating to gangsterism. And it seems to me that when it comes to a conflict with reactionary and unintelligent violence, socialists can appeal to the law, and instead of regarding the police as the enemy they should support them in the fight against the reactionaries. I think that it is useless operating with the methods of the old insurrectionary socialism.

Stalin: The Communists base themselves on rich historical experience which teaches that obsolete classes do not voluntarily abandon the stage of history.

Recall the history of England in the seventeenth century. Did not many say that the old social system had decayed? But did it not, nevertheless, require a Cromwell to crush it by force?

Wells: Cromwell acted on the basis of the constitution and in the name of constitutional order.

Stalin: In the name of the constitution he resorted to violence, beheaded the king, dispersed Parliament, arrested some and beheaded others!

Or take an example from our history. Was it not clear for a long time that the tsarist system was decaying, was breaking down? But how much blood had to be shed in order to overthrow it?

And what about the October Revolution? Were there not plenty of people who knew that we alone, the Bolsheviks, were indicating the only correct way out?

Was it not clear that Russian capitalism had decayed?

But you know how great was the resistance, how much blood had to be shed in order to defend the October Revolution from all its enemies, internal and external.

Or take France at the end of the eighteenth century.

Long before 1789 it was clear to many how rotten the royal power, the feudal system was. But a popular insurrection, a clash of classes was not, could not be avoided. Why? Because the classes which must abandon the stage of history are the last to become convinced that their role is ended. It is impossible to convince them of this. They think that the fissures in the decaying edifice of the old order can be repaired and saved. That is why dying classes take to arms and resort to every means to save their existence as a ruling class.

Wells: But there were not a few lawyers at the head of the Great French Revolution.

Stalin: Do you deny the role of the intelligentsia in revolutionary movements? Was the Great French Revolution a lawyers’ revolution and not a popular revolution, which achieved victory by rousing vast masses of the people against feudalism and championed the interests of the Third Estate? And did the lawyers among the leaders of the Great French Revolution act in accordance with the laws of the old order? Did they not introduce new, bourgeois revolutionary laws?

The rich experience of history teaches that up to now not a single class has voluntarily made way for another class. There is no such precedent in world history. The Communists have learned this lesson of history. Communists would welcome the voluntary departure of the bourgeoisie. But such a turn of affairs is improbable; that is what experience teaches. That is why the Communists want to be prepared for the worst and call upon the working class to be vigilant, to be prepared for battle. Who wants a captain who lulls the vigilance of his army, a captain who does not understand that the enemy will not surrender, that he must be crushed? To be such a captain means deceiving, betraying the working class. That is why I think that what seems to you to be old-fashioned is in fact a measure of revolutionary expediency for the working class.

Wells: I do not deny that force has to be used, but I think the forms of the struggle should fit as closely as possible to the opportunities presented by the existing laws, which must be defended against reactionary attacks. There is no need to disorganise the old system because it is disorganising itself enough as it is. That is why it seems to me insurrection against the old order, against the law, is obsolete; old-fashioned. Incidentally, I deliberately exaggerate in order to bring the truth out more clearly. I can formulate my point of view in the following way :

first, I am for order; second, I attack the present system in so far as it cannot assure order; third, I think that class war propaganda may detach from socialism just those educated people whom socialism needs.

Stalin: In order to achieve a great object, an important social object, there must be a main force, a bulwark, a revolutionary class. Next it is necessary to organise the assistance of an auxiliary force for this main force; in this case this auxiliary force is the Party, to which the best forces of the intelligentsia belong. Just now you spoke about “educated people.” But what educated people did you have in mind? Were there not plenty of educated people on the side of the old order in England in the seventeenth century, in France at the end of the eighteenth century, and in Russia in the epoch of the October Revolution? The old order had in its service many highly educated people who defended the old order, who opposed the new order. Education is a weapon the effect of which is determined by the hands which wield it, by who is to be struck down.

Of course, the proletariat, socialism, needs highly educated people. Clearly, simpletons cannot help the proletariat to fight for socialism, to build a new society. I do not underestimate the role of the intelligentsia; on the contrary, I emphasize it. The question is, however, which intelligentsia are we discussing?

Because there are different kinds of intelligentsia.

Wells: There can be no revolution without a radical change in the educational system. It is sufficient to quote two examples: The example of the German Republic, which did not touch the old educational system, and therefore never became a republic; and the example of the British Labour Party, which lacks the determination to insist on a radical change in the educational system.

Stalin: That is a correct observation.

Permit me now to reply to your three points.

First, the main thing for the revolution is the existence of a social bulwark. This bulwark of the revolution is the working class.

Second, an auxiliary force is required, that which the Communists call a Party. To the Party belong the intelligent workers and those elements of the technical intelligentsia which are closely connected with the working class. The intelligentsia can be strong only if it combines with the working class.

If it opposes the working class it becomes a cipher.

Third, political power is required as a lever for change. The new political power creates the new laws, the new order, which is revolutionary order.

I do not stand for any kind of order. I stand for order that corresponds to the interests of the working class. If, however, any of the laws of the old order can be utilised in the interests of the struggle for the new order, the old laws should be utilised.

I cannot object to your postulate that the present system should be attacked in so far as it does not ensure the necessary order for the people.

And, finally, you are wrong if you think that the Communists are enamoured of violence. They would be very pleased to drop violent methods if the ruling class agreed to give way to the working class. But the experience of history speaks against such an assumption.

Wells: There was a case in the history of England, however, of a class voluntarily handing over power to another class. In the period between 1830 and 1870, the aristocracy, whose influence was still very considerable at the end of the eighteenth century, voluntarily, without a severe struggle, surrendered power to the bourgeoisie, which serves as a sentimental support of the monarchy. Subsequently, this transference of power led to the establishment of the rule of the financial oligarchy.

Stalin: But you have imperceptibly passed from questions of revolution to questions of reform. This is not the same thing. Don’t you think that the Chartist movement played a great role in the Reforms in England in the nineteenth century?

Wells: The Chartists did little and disappeared without leaving a trace.

Stalin: I do not agree with you. The Chartists, and the strike movement which they organised, played a great role; they compelled the ruling class to make a number of concessions in regard to the franchise, in regard to abolishing the so-called “rotten boroughs,” and in regard to some of the points of the “Charter.”

Chartism played a not unimportant historical role and compelled a section of the ruling classes to make certain concessions, reforms, in order to avert great shocks. Generally speaking, it must be said that of all the ruling classes, the ruling classes of England, both the aristocracy and the bourgeoisie, proved to be the cleverest, most flexible from the point of view of their class interests, from the point of view of maintaining their power. Take as an example, say, from modern history, the general strike in England in 1926. The first thing any other bourgeoisie would have done in the face of such an event, when the General Council of Trade Unions called for a strike, would have been to arrest the trade union leaders.

The British bourgeoisie did not do that, and it acted cleverly from the point of view of its own interests.

I cannot conceive of such a flexible strategy being employed by the bourgeoisie in the United States, Germany or France. In order to maintain their rule, the ruling classes of Great Britain have never foresworn small concessions, reforms. But it would be a mistake to think that these reforms were revolutionary.

Wells: You have a higher opinion of the ruling classes of my country than I have. But is there a great difference between a small revolution and a great reform? Is not a reform a small revolution?

Stalin: Owing to pressure from below, the pressure of the masses, the bourgeoisie may sometimes concede certain partial reforms while remaining on the basis of the existing social-economic system.

Acting in this way, it calculates that these concessions are necessary in order to preserve its class rule. This is the essence of reform. Revolution, however, means the transference of power from one class to another. That is why it is impossible to describe any reform as revolution. That is why we cannot count on the change of social systems taking place as an imperceptible transition from one system to another by means of reforms, by the ruling class making concessions.

Wells: I am very grateful to you for this talk which has meant a great deal to me. In explaining things to me you probably called to mind how you had to explain the fundamentals of socialism in the illegal circles before the revolution. At the present time there are only two persons to whose opinion, to whose every word, millions are listening : you, and Roosevelt. Others may preach as much as they like; what they say will never be printed or heeded.

I cannot yet appreciate what has been done in your country; I only arrived yesterday. But I have already seen the happy faces of healthy men and women and I know that something very considerable is being done here. The contrast with 1920 is astounding.

Stalin: Much more could have been done had we Bolsheviks been cleverer.

Wells: No, if human beings were cleverer. It would be a good thing to invent a five-year plan for the reconstruction of the human brain which obviously lacks many things needed for a perfect social order.

(Laughter.)

Stalin: Don’t you intend to stay for the Congress of the Soviet Writers’ Union?

Wells: Unfortunately, I have various engagements to fulfil and I can stay in the USSR only for a week.

I came to see you and I am very satisfied by our talk. But I intend to discuss with such Soviet writers as I can meet the possibility of their affiliating to the PEN club. This is an international organisation of writers founded by Galsworthy; after his death I became president. The organisation is still weak, but it has branches in many countries, and what is more important, the speeches of the members are widely reported in the press. It insists upon this free expression of opinion – even of opposition opinion.

I hope to discuss this point with Gorky. I do not know if you are prepared yet for that much freedom here.

Stalin: We Bolsheviks call it “self-criticism.” It is widely used in the USSR. If there is anything I can do to help you I shall be glad to do so.

Wells: (Expresses thanks.)

Stalin: (Expresses thanks for the visit.)

Interview Between J. Stalin and Roy Howard

(On March 1, 1936, Comrade Stalin granted an interview to
Roy Howard, President of Scripps-Howard Newspapers.)

Howard: What, in your opinion, would be the consequences of the recent events in Japan for the situation in the Far East?

Stalin: So far it is difficult to say. Too little material is available to do so. The picture is not sufficiently clear.

Howard: What will be the Soviet attitude should Japan launch the long predicted military drive against Outer Mongolia?

Stalin: If Japan should venture to attack the Mongolian People’s Republic and encroach upon its independence, we will have to help the Mongolian People’s Republic. Stomonyakov, Litvinov’s assistant, recently informed the Japanese ambassador in Moscow of this, and pointed to the immutable friendly relations which the U.S.S.R. has been maintaining with the Mongolian People’s Republic since 1921. We will help the Mongolian People’s Republic just as we helped it in 1921.

Howard: Would a Japanese attempt to seize Ulan- Bator make positive action by the U.S.S.R. a necessity?

Stalin: Yes.

Howard: Have recent events developed any new Japanese activities in this region which are construed by the Soviets as of an aggressive nature?

Stalin: The Japanese, I think, are continuing to concentrate troops on the frontiers of the Mongolian People’s Republic, but no new attempts at frontier conflicts are so far observed.

Howard: The Soviet Union appears to believe that Germany and Poland have aggressive designs against the Soviet Union, and are planning military cooperation.

Poland, however, protested her unwillingness to permit any foreign troops using her territory as a basis for operations against a third nation. How does the Soviet Union envisage such aggression by Germany? From what position, in what direction would the German forces operate?

Stalin: History shows that when any state intends to make war against another state, even not adjacent, it begins to seek for frontiers across which it can reach the frontiers of the state it wants to attack, Usually, the aggressive state finds such frontiers.

It either finds them with the aid of force, as was the case in 1914 when Germany invaded Belgium in order to strike at France, or it “borrows” such a frontier, as Germany, for example, did from Latvia in 1918, in her drive to Leningrad. I do not know precisely what frontiers Germany may adapt to her aims, but I think she will find people willing to “lend” her a frontier.

Howard: Seemingly, the entire world today is predicting another great war. If war proves inevitable, when, Mr. Stalin, do you think it will come?

Stalin: It is impossible to predict that. War may break out unexpectedly. Wars are not declared, nowadays. They simply start. On the other hand, however, I think the positions of the friends of peace are becoming stronger. The friends of peace can work openly. They rely on the power of public opinion. They have at their command instruments like the League of Nations, for example. This is where the friends of peace have the advantage. Their strength lies in the fact that their activities against war are backed by the will of the broad masses of the people. There is not a people in the world that wants war. As for the enemies of peace, they are compelled to work secretly. That is where the enemies of peace are at a disadvantage. Incidentally, it is not precluded that precisely because of this they may decide upon a military adventure as an act of desperation.

One of the latest successes the friends of peace have achieved is the ratification of the Franco-Soviet Pact of Mutual Assistance by the French Chamber of Deputies. To a certain extent, this pact is an obstacle to the enemies of peace.

Howard: Should war come, Mr. Stalin, where is it most likely to break out? Where are the war clouds the most menacing, in the East or in the West?

Stalin: In my opinion there are two seats of war danger. The first is in the Far East, in the zone of Japan. I have in mind the numerous statements made by Japanese military men containing threats against other powers. The second seat is in the zone of Germany. It is hard to say which is the most menacing, but both exist and are active. Compared with these two principal seats of war danger, the Italian-Abyssinian war is an episode. At present, the Far Eastern seat of danger reveals the greatest activity. However, the centre of this danger may shift to Europe. This is indicated, for example, by the interview which Herr Hitler recently gave to a French newspaper. In this interview Hitler seems to have tried to say peaceful things, but he sprinkled his “peacefulness” so plentifully with threats against both France and the Soviet Union that nothing remained of his “peacefulness.” You see, even when Herr Hitler wants to speak of peace he cannot avoid uttering threats. This is symptomatic.

Howard: What situation or condition, in your opinion, furnishes the chief war menace today?

Stalin: Capitalism.

Howard: In which specific manifestation of capitalism?

Stalin: Its imperialist, usurpatory manifestation.

You remember how the first World War arose. It arose out of the desire to re-divide the world. Today we have the same background. There are capitalist states which consider that they were cheated in the previous redistribution of spheres of influence, territories, sources of raw materials, markets, etc., and which would want another redivision that would be in their favour. Capitalism, in its imperialist phase, is a system which considers war to be a legitimate instrument for settling international disputes, a legal method in fact, if not in law.

Howard: May there not be an element of danger in the genuine fear existent in what you term capitalistic countries of an intent on the part of the Soviet Union to force its political theories on other nations?

Stalin: There is no justification whatever for such fears. If you think that Soviet people want to change the face of surrounding states, and by forcible means at that, you are entirely mistaken. Of course, Soviet people would like to see the face of surrounding states changed, but that is the business of the surrounding states. I fail to see what danger the surrounding states can perceive in the ideas of the Soviet people if these states are really sitting firmly in the saddle.

Howard: Does this, your statement, mean that the Soviet Union has to any degree abandoned its plans and intentions for bringing about world revolution?

Stalin: We never had such plans and intentions.

Howard: You appreciate, no doubt, Mr. Stalin, that much of the world has long entertained a different impression.

Stalin: This is the product of a misunderstanding.

Howard: A tragic misunderstanding?

Stalin: No, a comical one. Or, perhaps, tragicomic.

You see, we Marxists believe that a revolution will also take place in other countries. But it will take place only when the revolutionaries in those countries think it possible, or necessary. The export of revolution is nonsense. Every country will make its own revolution if it wants to, and if it does not want to, there will be no revolution. For example, our country wanted to make a revolution and made it, and now we are building a new, classless society.

But to assert that we want to make a revolution in other countries, to interfere in their lives, means saying what is untrue, and what we have never advocated.

Howard: At the time of the establishment of diplomatic relations between the U.S.S.R. and the U.S.A., President Roosevelt and Litvinov exchanged identical notes concerning the question of propaganda.

Paragraph four of Litvinov’s letter to President Roosevelt said that the Soviet government undertakes “not to permit the formation or residence on its territory of any organisation or group – and to prevent the activity on its territory of any organisation or group, or of representatives or officials of any organisation or group – which has as its aim, the overthrow, or preparation for the overthrow of, or the bringing about by force of a change in the political or social order of the whole or any part of its territories or possessions.” Why, Mr. Stalin, did Litvinov sign this letter if compliance with the terms of paragraph four is incompatible with the interests of the Soviet Union or beyond its control?

Stalin: The fulfilment of the obligations contained in the paragraph you have quoted is within our control; we have fulfilled, and will continue to fulfil, these obligations.

According to our constitution, political emigrants have the right to reside on our territory. We provide them with the right of asylum just as the United States gives right of asylum to political emigrants.

It is quite obvious that when Litvinov signed that letter he assumed that the obligations contained in it were mutual. Do you think, Mr. Howard, that the fact that there are on the territory of the U.S.A., Russian white guard emigrants who are carrying on propaganda against the Soviets, and in favour of capitalism, who enjoy the material support of American citizens, and who, in some cases, represent groups of terrorists, is contrary to the terms of the Roosevelt-Litvinov agreement? Evidently these emigrants enjoy the right of asylum, which also exists in the United States. As far as we are concerned, we would never tolerate on our territory a single terrorist, no matter against whom his criminal designs were directed. Evidently the right of asylum is given a wider interpretation in the U.S.A. than in our country. But we are not complaining.

Perhaps you will say that we sympathize with the political emigrants who come on to our territory.

But are there no American citizens who sympathize with the white guard emigrants who carry on propaganda in favour of capitalism and against the Soviets? So what is the point? The point is not to assist these people, not to finance their activities. The point is that official persons in either country must refrain from interfering in the internal life of the other country. Our officials are honestly fulfilling this obligation. If any of them has failed in his duty, let us be informed about it.

If we were to go too far and to demand that all the white guard emigrants be deported from the United States, that would be encroaching on the right of asylum proclaimed both in the U.S.A. and in the U.S.S.R. A reasonable limit to claims and counterclaims must be recognised. Litvinov signed his letter to President Roosevelt, not in a private capacity, but in the capacity of representative of a state, just as President Roosevelt did. Their agreement is an agreement between two states. In signing that agreement both Litvinov and President Roosevelt, as representatives of two states, had in mind the activities of the agents of their states who must not and will not interfere in the internal affairs of the other side. The right of asylum proclaimed in both countries could not be affected by this agreement.

The Roosevelt – Litvinov agreement, as an agreement between the representatives of two states, should be interpreted within these limits.

Howard: Did not Browder and Darcy, the American Communists, appearing before the Seventh Congress of the Communist International last summer, appeal for the overthrow by force of the American government?

Stalin: I confess I do not remember the speeches of Comrades Browder and Darcy; I do not even remember what they spoke about. Perhaps they did say something of the kind. But it was not Soviet people who formed the American Communist Party.

It was formed by Americans. It exists in the U.S.A. legally. It puts up its candidates at elections, including presidential elections. If Comrades Browder and Darcy made speeches in Moscow once, they made hundreds of similar, and certainly stronger speeches at home, in the U.S.A. The American Communists are permitted to advocate their ideas freely, are they not? It would be quite wrong to hold the Soviet government responsible for the activities of American Communists.

Howard: But in this instance, is it not a fact that their activities took place on Soviet soil, contrary to the terms of paragraph four of the agreement between Roosevelt and Litvinov?

Stalin: What are the activities of the Communist Party; in what way can they manifest themselves?

Usually their activities consist in organising the masses of the workers, in organising meetings, demonstrations, strikes, etc. It goes without saying that the American Communists cannot do all this on Soviet territory. We have no American workers in the U.S.S.R.

Howard: I take it that the gist of your thought then is that an interpretation can be made which will safeguard and continue good relations between our countries?

Stalin: Yes, absolutely.

Howard: Admittedly communism has not been achieved in Russia. State socialism has been built.

Have not fascism in Italy and National-Socialism in Germany claimed that they have attained similar results? Have not both been achieved at the price of privation and personal liberty, sacrificed for the good of the state?

Stalin: The term “state socialism” is inexact.

Many people take this term to mean the system under which a certain part of wealth, sometimes a fairly considerable part, passes into the hands of the state, or under its control, while in the overwhelming majority of cases the works, factories and the land remain the property of private persons. This is what many people take “state socialism” to mean. Sometimes this term covers a system under which the capitalist state, in order to prepare for, or wage war, runs a certain number of private enterprises at its own expense. The society which we have built cannot possibly be called “state socialism.” Our Soviet society is socialist society, because the private ownership of the factories, works, the land, the banks and the transport system has been abolished and public ownership put in its place. The social organisation which we have created may be called a Soviet socialist organisation, not entirely completed, but fundamentally, a socialist organisation of society.

The foundation of this society is public property : state, i.e., national, and also co-operative, collective farm property. Neither Italian fascism nor German National-“Socialism” has anything in common with such a society. Primarily, this is because the private ownership of the factories and works, of the land, the banks, transport, etc., has remained intact, and, therefore, capitalism remains in full force in Germany and in Italy.

Yes , you are right, we have not yet built communist society. It is not so easy to build such a society. You are probably aware of the difference between socialist society and communist society. In socialist society certain inequalities in property still exist. But in socialist society there is no longer unemployment, no exploitation, no oppression of nationalities. In socialist society everyone is obliged to work, although he does not, in return for his labour receive according to his requirements, but according to the quantity and quality of the work he has performed. That is why wages, and, moreover, unequal, differentiated wages, still exist. Only when we have succeeded in creating a system under which, in return for their labour, people will receive from society, not according to the quantity and quality of the labour they perform, but according to their requirements, will it be possible to say that we have built communist society.

You say that in order t o build our socialist society we sacrificed personal liberty and suffered privation.

Your question suggests that socialist society denies personal liberty. That is not true. Of course, in order to build something new one must economize, accumulate resources, reduce one’s consumption for a time and borrow from others. If one wants to build a house one saves up money, cuts down consumption for a time, otherwise the house would never be built.

How much more true is this when it is a matter of building a new human society? We had to cut down consumption somewhat for a time, collect the necessary resources and exert great effort. This is exactly what we did and we built a socialist society.

But we did not build this society in order to restrict personal liberty but in order that the human individual may feel really free. We built it for the sake of real personal liberty, liberty without quotation marks. It is difficult for me to imagine what “personal liberty” is enjoyed by an unemployed person, who goes about hungry, and cannot find employment.

Real liberty can exist only where exploitation has been abolished, where there is no oppression of some by others, where there is no unemployment and poverty, where a man is not haunted by the fear of being tomorrow deprived of work, of home and of bread. Only in such a society is real, and not paper, personal and every other liberty possible.

Howard: Do you view as compatible the coincidental development of American democracy and the Soviet system?

Stalin: American democracy and the Soviet system may peacefully exist side by side and compete with each other. But one cannot evolve into the other.

The Soviet system will not evolve into American democracy, or vice versa. We can peacefully exist side by side if we do not find fault with each other over every trifling matter.

Howard: A new constitution is being elaborated in the U.S.S.R. providing for a new system of elections. To what degree can this new system alter the situation in the U.S.S.R. since, as formerly, only one party will come forward at elections?

Stalin: We shall probably adopt our new constitution at the end of this year. The commission appointed to draw up the constitution is working and should finish its labours soon. As has been announced already, according to the new constitution, the suffrage will be universal, equal, direct and secret.

You are puzzled by the fact that only one party will come forward at elections. You cannot see how election contests can take place under these conditions. Evidently candidates will be put forward not only by the Communist Party, but by all sorts of public, non-Party organisations. And we have hundreds of these. We have no contending parties any more than we have a capitalist class contending against a working class which is exploited by the capitalists.

Our society consists exclusively of free toilers of town and country – workers, peasants, intellectuals.

Each of these strata may have its special interests and express them by means of the numerous public organisations that exist. But since there are no classes, since the dividing lines between classes have been obliterated, since only a slight, but not a fundamental, difference between various strata in socialist society has remained, there can be no soil for the creation of contending parties. Where there are not several classes there cannot be several parties, for a party is part of a class.

Under National-“Socialism” there is also only one party. But nothing will come of this fascist one party system. The point is that in Germany, capitalism and classes have remained, the class struggle has remained and will force itself to the surface in spite of everything, even in the struggle between parties which represent antagonistic classes, just as it did in Spain, for example. In Italy there is also only one party, the Fascist Party. But nothing will come of it there for the same reasons.

Why will our suffrage be universal? Because all citizens, except those deprived of the franchise by the courts, will have the right to elect and be elected.

Why will our suffrage be equal? Because neither differences in property (which still exist to some extent) nor racial or national affiliation will entail either privilege or disability. Women will enjoy the same rights to elect and be elected as men. Our suffrage will be really equal.

Why secret? Because we want to give Soviet people complete freedom to vote for those they want to elect, for those whom they trust to safeguard their interests.

Why direct? Because direct elections to all representative institutions, right up to the supreme bodies, will best of all safeguard the interests of the toilers of our boundless country. You think that there will be no election contests.

But there will be, and I foresee very lively election campaigns. There are not a few institutions in our country which work badly. Cases occur when this or that local government body fails to satisfy certain of the multifarious and growing requirements of the toilers of town and country. Have you built a good school or not? Have you improved housing conditions?

Are you a bureaucrat? Have you helped to make our labour more effective and our lives more cultured?

Such will be the criteria with which millions of electors will measure the fitness of candidates, reject the unsuitable, expunge their names from candidates’ lists, and promote and nominate the best.

Yes, election campaigns will be very lively, they will be conducted around numerous, very acute problems, principally of a practical nature, of first class importance for the people. Our new electoral system will tighten up all institutions and organisations and compel them to improve their work. Universal, direct and secret suffrage in the U.S.S.R. will be a whip in the hands of the population against the organs of government which work badly. In my opinion our new Soviet constitution will be the most democratic constitution in the world.

Pravda
5 March 1936

Replies to the Questions of Ralph V. Barnes

1st Question: Certain circles in America are intensely discussing at the present time the possibility of Bending to Moscow an unofficial American trade representative, accompanied by a staff of specialists, for promoting the establishment of closer trade connections between the United States and the USSR What would be the attitude of the Soviet Government to such a proposal?

Stalin: In general, the USSR gladly receives trade representatives and specialists of countries which maintain normal relations with it. As regards the USA, I believe the Soviet Government would look favorably upon such an undertaking.

2nd Question: If certain of the obstacles existing on the other side of the Atlantic Ocean to an expansion of Soviet-American trade were removed, what would be the approximate volume of orders that the USSR would be in a position to place in the United States?

Stalin: It is difficult to name a figure in advance without the risk of making a mistake. In any event the growing requirements of the USSR and the vast possibilities of the industry of the USA fully warrant the belief that the volume of orders would increase several times over.

3rd Question: Certain responsible circles in the USA are under the quite definite impression that obvious similarity has been revealed in the reaction of the Soviet and the American Governments to events in the Far East during the last seven months, and that in general as a consequence of this the divergence in policy between the Soviets and America has become less than hitherto. What is your opinion in this regard?

Stalin: It is impossible to say anything definite, since unfortunately it is very difficult to grasp the essentials of the Far Eastern policy of the USA As far as the Soviet Union is concerned, it has adhered, and will continue to adhere, to a firm policy of maintaining peace both with Japan and with Manchuria and China as a whole.

4th Question: There is a great difference between your country and mine, but there is also obvious similarity. Each occupies a vast territory in which there are no such obstacles to trade as tariff barriers. Stupid traditions, of course, interfere less with economic activity in the USSR and the United States than in other first-rate powers. The process of industrialization in the USSR is more like the same process in the United States than that in other West-European Powers. In my preceding question I already indicated that in some cases policy in Moscow and Washington is not so much at variance as might have been expected. Lastly, there is undoubtedly a deep friendly feeling between the American and Soviet peoples despite all the obvious difference between them. In view of these facts, would it not be possible to inspire the conviction in the minds of both peoples that no armed clash between the two countries should ever under any circumstances be allowed to occur?

Stalin: There can be nothing easier than to convince the peoples of both countries of the harm and criminal character of mutual extermination. But, unfortunately, questions of war and peace are not always decided by the peoples. I have no doubt that the masses of the people of the USA did not want war with the peoples of the USSR in 1918-19. This, however, did not prevent the USA Government from attacking the USSR in 1918 (in conjunction with Japan, Britain and France) and from continuing its military intervention against the USSR right up to 1919. As for the USSR, proof is hardly required to show that what its peoples as well as its government want is that “no armed clash between the two countries should ever under any circumstances” be able to occur.

5th Question: Contradictory reports have been spread in America concerning the real nature of the Second Five-Year Plan. Is it true that between January 1, 1933, and the end of 1937 the daily needs of the Soviet population will be satisfied to a greater extent than hitherto? In other words, will light industry really develop to a greater extent than before?

Stalin: Yes, light industry will develop to a much greater extent than before.

Talk With the German Author Emil Ludwig

Ludwig: I am extremely obliged to you for having found it possible to receive me. For over twenty years I have been studying the lives and deeds of outstanding historical personages. I believe I am a good judge of people, but on the other hand I know nothing about social-economic conditions.

Stalin: You are being modest.

Ludwig: No, that is really so, and for that very reason I shall put questions that may seem strange to you. Today, here in the Kremlin, I saw some relies of Peter the Great and the first question I should like to ask you is this: Do you think a parallel can be drawn between yourself and Peter the Great? Do you consider yourself a continuer of the work of Peter the Great?

Stalin: In no way whatever. Historical parallels are always risky. There is no sense in this one.

Ludwig: But after all, Peter the Great did a great deal to develop his country, to bring western culture to Russia.

Stalin: Yes, of course, Peter the Great did much to elevate the landlord class and develop the nascent merchant class. He did very much indeed to create and consolidate the national state of the landlords and merchants. It must he said also that the elevation of the landlord class, the assistance to the nascent merchant Class and the consolidation of the national state of these classes took place at the cost of the peasant serfs, who were bled white.

As for myself, I am just a pupil of Lenin’s, and the aim of my life is to be a worthy pupil of his. The task to which I have devoted my life is the elevation of a different class-the working class. That task is not the consolidation of some “national” state, but of a socialist state, and that means an international state; and everything that strengthens that state helps to strengthen the entire international working class. If every step I take in my endeavor to elevate the working class and strengthen the socialist state of this class were not directed towards strengthening and improving the position of the working class, I should consider my life purposeless.

So you see your parallel does not fit.

As regards Lenin and Peter the Great, the latter was hut a drop in the sea, whereas Lenin was a whole ocean.

Ludwig: Marxism denies that the individual plays an outstanding role in history. Do you not see a contradiction between the materialist conception of history and the fact that, after all, you admit the outstanding role played by historical personages?

Stalin: No, there is no contradiction here. Marxism does not at all deny the role played by outstanding individuals or that history is made by people. In Marx’s The Poverty of Philosophy and in other works of his you will find it stated that it is people who make history. But, of course, people do not make history according to the promptings of their imagination pr as some fancy strikes them. Every new generation encounters definite conditions already existing, ready-made when that generation was born. And great people are worth anything at all only to the extent that they are able correctly to understand these conditions, to understand how to change them. If they fail to understand these conditions and want to alter them according to the promptings of their imagination, they will land themselves in the situation of Don Quixote. Thus it is precisely Marx’s view that people must not be counterposed to conditions. It is people who make history, but they do so only to the extent that they correctly understand the conditions that they have found ready-made, and only to the extent that they understand how to change those conditions. That, at least, is how we Russian Bolsheviks understand Marx. And we have been studying Marx for a good many years.

Ludwig: Some thirty years ago, when I was at the university, many German professors who considered themselves adherents of the materialist conception of history taught us that Marxism denies the role of heroes, the role of heroic personalities in history.

Stalin: They were vulgarizers of Marxism. Marxism has never denied the role of heroes. On the contrary, it admits that they play a considerable role, hut with the reservations I have just made.

Ludwig: Sixteen chairs are placed around the table at which we are seated. Abroad people know, on the one hand, that the USSR is a country in which everything must he decided collectively, but they know, on the other hand, that everything is decided by individual persons. Who really does decide?

Stalin: No, individual persons cannot decide. Decisions of individuals are always, or nearly always, one-sided decisions. In every collegium, in every collective body, there are people whose opinion must be reckoned with. In every collegium, in every collective body, there are people who may express wrong opinions. From the experience of three revolutions we know that out of every 100 decisions taken by individual persons without being tested and corrected collectively, approximately 90 are one-sided. In our leading body, the Central Committee of our Party, which directs all our Soviet and Party organizations, there are about 70 members. Among these 70 members of the Central Committee are our best industrial leaders, our best co-operative leaders, our best managers of supplies, our best military men, our best propagandists and agitators, our best experts on state farms, on collective farms, on individual peasant farms, our best experts on the nations constituting the Soviet Union and on national policy. In this areopagus is concentrated the wisdom of our Party. Each has an opportunity of correcting anyone’s individual opinion or proposal. Each has an opportunity of contributing his experience. If this were not the case, if decisions were taken by individual persons, there would he very serious mistakes in our work. But since each has an opportunity of correcting the mistakes of individual persons, and since we pay heed to such corrections, we arrive at decisions that are more or less correct.

Ludwig: You have had decades of experience of illegal work. You have had to transport illegally arms, literature, and so forth. Do you not think that the enemies of the Soviet regime might learn from your experience and fight the Soviet regime with the same methods?

Stalin: That, of course, is quite possible.

Ludwig: Is that not the reason for the severity and ruthlessness of your government in fighting its enemies?

Stalin: No, that is not the chief reason. One could quote certain examples from history. When the Bolsheviks came to power they at first treated their enemies mildly. The Mensheviks continued to exist legally and publish their newspaper. The Socialist Revolutionaries also continued to exist legally and had their newspaper. Even the Cadets continued to publish their newspaper. When General Krasnov organized his counter-revolutionary campaign against Leningrad and fell into our hands, we could at least have kept him prisoner, according to the rules of war. Indeed, we ought to have shot him. But we released him on his “word of honor.” And what happened? It soon became clear that such mildness only helped to undermine the strength of the Soviet Government. We made a mistake in displaying such mildness towards enemies of the working class. To have persisted in that mistake would have been a crime against the working class and a betrayal of its interests. That soon became guile apparent. Very soon it became evident that the milder our attitude towards our enemies, the greater their resistance. Before long the Right Socialist-Revolutionaries—Golz and others—and the Right Mensheviks were organizing in Leningrad a counter-revolutionary action of the military cadets, as a result of which many of our revolutionary sailors perished.

This very Krasnov, whom we had released on his “word of honor,” organized the whiteguard Cossacks. He joined forces with Mamontov and for two years waged an armed struggle against the Soviet Government. Very soon it turned out that behind the whiteguard generals stood the agents of the western capitalist states—France, Britain, America—and also Japan. We became convinced that we had made a mistake in displaying mildness.

We learnt from experience that the only way to deal with such enemies is to apply the most ruthless policy of suppression to them.

Ludwig: It seems to me that a considerable part of the population of the Soviet Union stands in fear and trepidation of the Soviet power, and that the stability of the latter rests to a certain extent on that sense of fear. I should like to know what state of mind is produced in you personally by the realization that it is necessary to inspire fear in the interests of strengthening the regime. After all, when you associate with your comrades, your friends, you adopt quite different methods than those of inspiring fear. Yet the population is being inspired with fear.

Stalin: You are mistaken. Incidentally, your mistake is that of many people. Do you really believe that we could have retained power and have had the backing of the vast masses for 14 years by methods of intimidation and terrorization? No, that is impossible. The tsarist government excelled all others in knowing how to intimidate. It had long and vast experience in that sphere. The European bourgeoisie, particularly the French, gave tsarism every assistance in this matter and taught it to terrorize the people. Yet, in spite of that experience and in spite of the help of the European bourgeoisie, the policy of intimidation led to the downfall of Tsarism.

Ludwig: But the Romanovs held on for 300 years.

Stalin: Yes, hut how many revolts and uprisings there were during those 300 years! There was the uprising of Stepan Razin, the uprising of Yemelyan Pugachov, the uprising of the Decemberists, the revolution of 1905, the revolution of February 1917, and the October Revolution. That is apart from the fact that the present-day conditions of political and cultural life in the country are radically different from those of the old regime, when the ignorance, lack of culture, submissiveness and political downtroddenness of the masses enabled the “rulers” of that time to remain in power for a more or less prolonged period.

As regards the people, the workers and peasants of the USSR, they are not at all so tame, so submissive and intimidated as you imagine. There are many people in Europe whose ideas about the people of the USSR are old-fashioned: they think that the people living in Russia are, firstly, submissive and, secondly, lazy.

That is an antiquated and radically wrong notion. It arose in Europe in those days when the Russian landlords began to flock to Paris, where they squandered the loot they had amassed and spent their days in idleness. These were indeed spineless and worthless people. That gave rise to conclusions about “Russian laziness.” But this cannot in the least apply to the Russian workers and peasants, who earned and still earn their living by their own labor. It is indeed strange to consider the Russian peasants and workers submissive arid lazy when in a brief period of time they made three revolutions, smashed tsarism and the bourgeoisie, and are now triumphantly building socialism.

Just now you asked me whether everything in our Country was decided by one person.

Never under any circumstances would our workers now tolerate power in the hands of one person. With us personages of the greatest authority are reduced to nonentities, become mere ciphers, as soon as the masses of the workers lose confidence in them, as soon as they lose contact with the masses of the workers. Plekhanov used to enjoy exceptionally great prestige. And what happened? As soon as he began to stumble politically the workers forgot him. They forsook him and forgot him. Another instance: Trotsky. His prestige too was great, although, of course, it was nothing like Plekhanov’s. What happened? As soon as he drifted away from the workers they forgot him.

Ludwig: Entirely forgot him?

Stalin: They remember him sometimes—but with bitterness.

Ludwig: All of them with bitterness?

Stalin: As far as our workers are concerned, they remember Trotsky with bitterness, with exasperation, with hatred.

There is, of course, a certain small section of the population that really does stand in fear of the Soviet power, and fights against it. I have in mind the remnants of the moribund classes, which are being eliminated, and primarily that insignificant part of the peasantry, the kulaks. But here it is a matter not merely of a policy of intimidating these groups, a policy that really does exist. Everybody knows that in this ease we Bolsheviks do not confine ourselves to intimidation but go further, aiming at the elimination of this bourgeois stratum.

But if you take the laboring population of the USSR, the workers and the laboring peasants, who represent not less than 40 per cent of the population, you will find that they are in favor of Soviet power and that the vast majority of them actively support the Soviet regime. They support the Soviet system because that system serves the fundamental interests of the workers and peasants.

That, and not a policy of so-called intimidation, is the basis of the Soviet Government’s stability.

Ludwig: I am very grateful to you for that answer. I beg you to forgive me if I ask you a question that may appear to you a strange one. Your biography contains instances of what may be called acts of “highway robbery. Were you over interested in the personality of Stepan Razin? What is your attitude towards him as an “ideological highwayman”?

Stalin: We Bolsheviks have always taken an interest in such historical personalities as Bolotnikov, Razin, Pugachov, and so on. We regard the deeds of these individuals as a reflection of the spontaneous indignation of the oppressed classes, of the spontaneous rebellion of the peasantry against feudal oppression. The study of the history of these first attempts at such revolt on the part of the peasantry has always been of interest to us. But, of course, no analogy can be drawn here between them and the Bolsheviks. Sporadic peasant uprisings, even when not of the “highway robber” and unorganized type, as in the case of Stepan Razin, cannot lead to anything of importance. Peasant uprisings can be successful only if they are combined with uprisings of the workers and if they are led by the workers. Only a combined uprising headed by the working class can achieve its aim.

Moreover, it must never be forgotten that Razin and Pugachov were tsarists: they came out against the landlords, hut were in favor of a “good tsar.” That indeed was their slogan.

As you see, it is impossible to draw an analogy here with the Bolsheviks.

Ludwig: Allow me to put a few questions to you concerning your biography. When I went to see Masaryk he told me he was conscious of being a Socialist when only six years old. What made you a Socialist and when was that?

Stalin: I cannot assert that I was already drawn to socialism at the age of six. Not even at the age of ten or twelve. I joined the revolutionary movement when fifteen years old, when I became connected with underground groups of Russian Marxists then living in Transcaucasia. These groups exerted great influence on me and instilled in me a taste for underground Marxist literature.

Ludwig: What impelled you to become an oppositionist? Was it, perhaps, bad treatment by your parents?

Stalin: No. My parents were uneducated, but they did not treat me badly by any means. But it was a different matter at the Orthodox theological seminary which I was then attending. In protest against the outrageous regime and the Jesuitical methods prevalent at the seminary, I was ready to become, and actually did become, a revolutionary, a believer in Marxism as a really revolutionary teaching.

Ludwig: But do you not admit that the Jesuits have good points?

Stalin: Yes, they are systematic and persevering in working to achieve sordid ends. Hut their principal method is spying, prying, worming their way into people’s souls and outraging their feelings. What good can there be in that? For instance, the spying in the hostel. At nine o’clock the bell rings for morning tea, we go to the dining-room, and when we return to our rooms we find that meantime a search has been made and all our chests have been ransacked…. What good point can there be in that?

Ludwig: I notice that in the Soviet Union everything American is held in very high esteem, I might even speak of a worship of everything American, that is, of the Land of the Dollar, the most out-and-out capitalist country. This sentiment exists also in your working class, and applies not only to tractors and automobiles, but also to Americans in general. How do you explain that?

Stalin: You exaggerate. We have no especially high esteem for everything American, nut we do respect the efficiency that the Americans display in everythingÑin industry, in technology, in literature and in life. We never forget that the U.S.A. is a capitalist country. But among the Americans there are many people who are mentally and physically healthy who are healthy in their whole approach to work, to the job on hand. That efficiency, that simplicity, strikes a responsive chord in our hearts. Despite the fact that America is a highly developed capitalist country, the habits prevailing in its industry, the practices existing in productive processes, have an element of democracy about them, which cannot be said of the old European capitalist countries, where the haughty spirit of the feudal aristocracy is still alive.

Ludwig: You do not even suspect how right you are.

Stalin: Maybe I do; who can tell?

In spite of the fact that feudalism as a social order was demolished long ago in Europe, considerable relies survive in manner of life and customs. There are still technicians, specialists, scientists and writers who have sprung from the feudal environment and who carry aristocratic habits into industry, technology, science and literature. Feudal traditions have not been entirely demolished.

That cannot be said of America, which is a country of “free colonists,” without landlords and without aristocrats. Hence the sound and comparatively simple habits in American productive life. Our business executives of working-class origin who have visited America at once noted this trait. They relate, not without a certain agreeable surprise, that on a production job in America it is difficult to distinguish an engineer from a worker by outward appearance. That pleases them, of course.

But matters are quite different in Europe.

But if we are going to speak of our liking for a particular nation, or rather, for the majority of its citizens, then of course we must not fail to mention our liking for the Germans. Our liking for the Americans cannot he compared to that!

Ludwig: Why precisely the German nation?

Stalin: If only for the reason that it gave the world such men as Marx and Engels. It suffices to state the fact as such.

Ludwig: It has recently been noticed that certain German politicians are seriously afraid that the traditional policy of friendship between the USSR and Germany will be pushed into the background. These fears have arisen in connection with the negotiations between the USSR and Poland. Should the recognition of Poland’s present frontiers by the USSR become a fact as a result of these negotiations it would spell bitter disappointment for the entire German people, who have hitherto believed that the USSR is fighting the Versailles system and has no intention of recognizing it.

Ludwig: I know that a certain dissatisfaction and alarm may he noticed among some German statesmen on the grounds that the Soviet Union, in its negotiations or in some treaty with Poland, may take some step that would imply on the part of the Soviet Union a sanction, a guarantee, for Poland’s possessions and frontiers.

In my opinion such fears are mistaken. We have al- ways declared our readiness to conclude a non-aggression pact with any state. We have already concluded such pacts with a number of countries. We have openly declared our readiness to sign such a pact with Poland, too. When we declare that we are ready to sign a pact of non-aggression with Poland, this is not mere rhetoric. It means that we really want to sign such a pact.

We are politicians of a special brand if you like. There are politicians who make a promise or statement one day, and on the next either forget all about it or deny what they stated, and do so without even blushing. We cannot act in that way. Whatever we do abroad inevitably becomes known inside our country, becomes known to all the workers and peasants. If we said one thing and did another, we should forfeit our prestige among the masses of the people. As soon as the Poles declared that they were ready to negotiate a non-aggression pact with us, we naturally agreed and opened negotiations.

What, from the Germans’ point of view, is the most dangerous thing that could happen? A change for the worse in our relations with them. But there is no basis whatever for that. We, exactly like the Poles, must declare in the pact that we will not use force or resort to aggression in order to change the frontiers of Poland or the USSR, or violate their independence. Just as we make such a promise to the Poles, so they make the same promise to us. Without such a clause, namely, that we do not intend to go to war for the purpose of violating the independence or integrity of the frontiers of our respective states, no pact can he concluded. Without that a pact is out of the question. That is the most that we can do.

Is this recognition of the Versailles system? No. Or is it, perhaps, a guaranteeing of frontiers? No. We never have been guarantors of Poland and never shall become such, just as Poland has not been and will not be a guarantor of our frontiers. Our friendly relations with Germany will continue as hitherto. That is my firm conviction.

Therefore, the fears you speak of are wholly without foundation, They have arisen on the basis of rumors spread by some Poles and Frenchmen. They will disappear when we publish the pact, if Poland signs it. Everyone will then see that it contains nothing against Germany.

Ludwig: I am very thankful to you for that statement. Allow me to ask you the following question: You speak of “wage equalization,” giving the term a distinctly ironical shade of meaning in relation to general equalization. But, surely, general equalization is a socialist ideal.

Stalin: The kind of socialism under which everybody would get the same pay, an equal quantity of meat and an equal quantity of bread, would wear the same clothes and receive the same goods in the same quantities—such a socialism is unknown to Marxism.

All that Marxism says is that until classes have been finally abolished and until labor has been transformed from a means of subsistence into the prime want of man, into voluntary labor for society, people will be paid for their labor according to the work performed. “From each according to his ability, to each according to his work.” Such is the Marxist formula of socialism, i.e., the formula of the first stage of communism, the first stage of communist society.

Only at the higher stage of communism, only in its higher phase, will each one, working according to his ability, be recompensed for his work according to his needs. “From each according to his ability, to each according to his needs.”

It is quite clear that people’s needs vary and will continue to vary under socialism. Socialism has never denied that people differ in their tastes, and in the quantity and quality of their needs. Read how Marx criticized Stirner for his leaning towards equalitarianism; read Marx’s criticism of the Gotha Programme of 1875; read the subsequent works of Marx, Engels and Lenin, and you will see how sharply they attack equalitarianism. Equalitarianism owes its origin to the individual peasant type of mentality, the psychology of share and share alike, the psychology of primitive peasant “communism.” Equalitarianism has nothing in common with Marxist socialism. Only people who are unacquainted with Marxism can have the primitive notion that the Russian Bolsheviks want to pool all wealth and then share it out equally. That is the notion of people who have nothing in common with Marxism. That is how such people as the primitive “Communists” of the time of Cromwell and the French Revolution pictured communism to themselves. But Marxism and the Russian Bolsheviks have nothing in common with such equalitarian “Communists. “

Ludwig: You are smoking a cigarette. Where is your legendary pipe, Mr. Stalin? You once said that words and legends pass, but deeds remain. Now believe me, there are millions of people abroad who do not know about some of your words and deeds, but who do know about your legendary pipe.

Stalin: I left my pipe at home.

Ludwig: I shall now ask you a question that may astonish you greatly.

Stalin: We Russian Bolsheviks have long ceased to be astonished at anything.

Ludwig: Yes, and we in Germany too.

Stalin: Yes, you in Germany will soon stop being astonished.

Ludwig: My question is the following: You have often incurred risks and dangers. You have been persecuted. You have taken part in battles. A number of your close friends have perished. You have survived. How do you explain that? And do you believe in fate?

Stalin: No, I do not. Bolsheviks, Marxists, do not believe in “fate.” The very concept of fate, of “Schieksal,” is a prejudice, an absurdity, a relic of mythology, like the mythology of the ancient Greeks, for whom a goddess of fate controlled the destinies of men.

Ludwig: That is to say that the fact that you did not perish is an accident?

Stalin: There are internal and external causes, the combined effect of which was that I did not perish. But entirely independent of that, somebody else could have been in my place, for somebody had to occupy it. “Fate” is something not governed by natural law, something mystical. I do not believe in mysticism. Of course, there were reasons why danger left me unscathed. But there could have been a number of other fortuitous circumstances, of other causes, which could have led to a directly opposite result. So-called fate has nothing to do with it.

Ludwig: Lenin passed many years in exile abroad. You had occasion to be abroad for only a very short time. Do you consider that this has handicapped you? Who do you believe were of greater benefit to the revolution—those revolutionaries who lived in exile abroad and thus had the opportunity of making a thorough study of Europe, but on the other hand were cut off from direct contact with the people; or those revolutionaries who carried on their work here, knew the moods of the people, but on the other hand knew little of Europe?

Stalin: Lenin must be excluded from this comparison. Very few of those who remained in Russia were as intimately connected with the actual state of affairs there and with the labor movement within the country as Lenin was, although he was a long time abroad. Whenever I went to see him abroad—in 1906, 1907, 1912 and 1913—I saw piles of letters he had received from practical Party workers in Russia, and he was al- ways better informed than those who stayed in Russia. He always considered his stay abroad to be a burden to him. There are many more comrades in our Party and its leadership who remained in Russia, who did not go abroad, than there are former exiles, and they, of course, were able to be of greater benefit to the revolution than those who were in exile abroad. Actually few former exiles are left in our Party. They may add up to about one or two hundred out of the two million members of the Party. Of the seventy members of the Central Committee scarcely more than three or four lived in exile abroad.

As far as knowledge of Europe, a study of Europe, is concerned, those who wished to make such a study had, of course, more opportunities of doing so while living there. In that respect those of us who did not live long abroad lost something. But living abroad is not at all a decisive factor in making a study of European economies, technique, the cadres of the labor movement and literature of every description, whether belies letters or scientific. Other things being equal, it is of course easier to study Europe on the spot. But the disadvantage of those who have not lived in Europe is not of much importance. On the contrary, I know many comrades who were abroad twenty years, lived somewhere in Charlottenburg or in the Latin Quarter, spent years in cafes drinking beer, and who yet did not manage to acquire a knowledge of Europe and failed to understand it.

Ludwig: Do you not think that among the Germans as a nation love of order is more highly developed than love of freedom?

Stalin: There was a time when people in Germany did indeed show great respect for the law. In 1907, when I happened to spend two or three months in Berlin, we Russian Bolsheviks often used to laugh at some of our German friends on account of their respect for the law. There was, for example, a story in circulation about an occasion when the Berlin Social-Democratic Executive fixed a definite day and hour for a demonstration that was to be attended by the members of all the suburban organizations. A group of about 200 from one of the suburbs arrived in the city punctually at the hour appointed, but failed to appear at the demonstration, the reason being that they had waited two hours on the station platform because the ticket collector at the exit had failed to make his appearance and there had been nobody to give their tickets to. It used to be said in jest that it took a Russian comrade to show the Germans a simple way out of their fix: to leave the platform without giving up their tickets…. But is there anything like that in Germany now? Is there respect for the law in Germany today? What about the National Socialists, who one would think ought to be the first to stand guard over bourgeois legality? Do they not break the law, wreck workers’ clubs and assassinate workers with impunity? I make no mention of the workers, who, it seems to me, long ago lost all respect for bourgeois legality. Yes, the Germans have changed quite a bit lately.

Ludwig: Under what conditions is it possible to unite the working Glass finally and completely under the leadership of one party? Why is such a uniting of the working class possible only after the proletarian revolution, as the Communists maintain?

Stalin: Such a uniting of the working Class around the Communist Party is most easily accomplished as the result of a victorious proletarian revolution. But it will undoubtedly be achieved in the main even before the revolution.

Ludwig: Does ambition stimulate or hinder a great historical figure in his activities?

Stalin: The part played by ambition differs under different conditions. Ambition may he a stimulus or a hindrance to the activities of a great historical figure. It all depends on circumstances. More often than not it is a hindrance.

Ludwig: Is the October Revolution in any sense the continuation and culmination of the Great French Revolution?

Stalin: The October Revolution is neither the continuation nor the culmination of the Great French Revolution. The purpose of the French Revolution was to abolish feudalism in order to establish capitalism. The purpose of the October Revolution, however, is to abolish capitalism in order to establish socialism.

Mr. Campbell Stretches the Truth

A book in English entitled Russia — Market or Menace? written by Mr. Campbell, a well-known figure in the agricultural world, who had visited the USSR, recently made its appearance in America. In this book Mr. Campbell, among other things, gives an account of what he calls an “interview” with Stalin that took place in Moscow in January 1929. This “interview” is remarkable for the fact that its every sentence is either pure fiction or a sensational piece of trickery with the aim of gaining publicity for the book and its author.

It will not be amiss, in my opinion, to say a few words in order to expose these fictitious statements.

Mr. Campbell is obviously drawing on his imagination when he says that his talk with Stalin, which began at 1 p.m., “lasted until well after dark, in fact, until dawn.” Actually, the talk did not last more than two hours. Mr. Campbell’s imagination is truly American.

Mr. Campbell is stretching the truth when he asserts that Stalin “took my hand in both of his and said: ‘we can be friends.'” As a matter of fact, nothing of the kind happened or could have happened.

Mr. Campbell cannot but know that Stalin has no need of “friends” of the Campbell type.

Mr. Campbell again stretches the truth when he says that on sending him a record of the talk, I added the postscript: “Keep this record, it may be a very historical document some day… As a matter of fact the record was sent to Mr. Campbell by the translator Yarotsky without any postscript at all. Mr. Campbell’s desire to make capital out of Stalin obviously betrays him.

Mr. Campbell still further stretches the truth when he puts such words into the mouth of Stalin as that “under Trotsky there had been an attempt to spread communism throughout the world; that this was the primary cause of the break between hirnself [i.e., Stalin] and Trotsky; that Trotsky believed in universal communism, while he [Stalin] worked to confine his efforts to his own country.” Only people who have deserted to the camp of the Kautskys and the Welses can believe such stuff and nonsense, in which the facts are turned upside-down. As a matter of fact, the talk with Campbell had no bearing on the Trotsky question and Trotsky’s name was not mentioned at all in the course of it.

And so on in the same strain.

Mr. Campbell mentioned in his book the record of his talk with Stalin but he did not find it necessary to publish it in his book. Why? Was it not because publication of the record would have upset Mr. Campbell’s plan to utilize the sensational fables about the “interview” with Stalin in order to gain publicity for Campbell’s book among the American philistines?

I think the best punishment for the lying Mr. Campbell would he to publish the record of the talk between Mr. Campbell and Stalin. This would be the surest means of exposing his lies and establishing the facts.

J . Stalin

November 23, 1932

Record of the Talk with Mr. Campbell

January 28, 1929

After an exchange of preliminary phrases Mr. Campbell explained his desire to pay a visit to Stalin. He pointed out that although he was in the USSR in a private capacity, he had, before leaving the United States, seen Coolidge and also Hoover, the newly elected President, and received their full approval of his trip to Russia. His stay here showed him the amazing activity of the nation that has remained an enigma to the whole world. He particularly liked the projects for the development of agriculture. He knew of the existence of many wrong notions about Russia, but had himself been in the Kremlin, for instance, and had seen the work being done to preserve memorials of art and in general to raise the level of cultural life. He was particularly struck by the solicitude for working men and working women. It seemed to him an interesting coincidence that before his departure from the United States he was invited by the President, and saw Coolidge’s son and wife, while yesterday he was the guest of Mikhail Kalinin, President of the USSR, who impressed him tremendously.

Stalin: With regard to our plans of agricultural and industrial development, as well as our concern for the development of cultural life, we are still at the very beginning of our work. In the building up of industry we have done very little as yet. Still less has been done in carrying out the plans for agricultural re-construction. We must not forget that our country was exceedingly backward and that this backwardness is still a great handicap.

The difference between the former and the new leading figures in Russia consists, among other things, in the fact that the old ones considered the country’s backwardness one of its good points, regarding it as a “national characteristic,” a matter for “national pride,” whereas the new people, the Soviet people, combat it as an evil that must be rooted out. Herein lies the guarantee of our success.

We know that we are not free from mistakes. But we do not fear criticism, are not afraid to face the difficulties and admit our mistakes. We shall accept correct criticism and welcome it. We watch developments in the USA, for that country ranks high in science and technology. We would like scientific and technical people in America to be our teachers in the sphere of technique, and we their pupils.

Every period in the development of a nation is marked by a passion of its own. In Russia we now witness a passion for construction. This is her preponderating feature today. This explains the construction fever that we are. experiencing at present. It is reminiscent of the period that the USA went through after the Civil War. (1) This affords a basis and an opportunity for technical industrial and commercial cooperation with the USA I do not know what still needs to be done to secure contact with American industry. Could you not explain what now prevents such a rapprochement from being realized, if it is established that such contact would be advantageous to both the USSR and the USA?

Mr. Campbell: I am certain that there is a striking similarity between the USA and Russia in point of size, resources and independence. Mr. Stalin’s reference to the Civil War period is correct. After the Civil War extraordinary expansion was witnessed. The people in the USA are interested in Russia. I am sure that Russia is too big a country not to be a big factor in world relations. The people at the head of the Russian Government have grand opportunities to accomplish great things. All that is needed for this is clarity of judgment and the ability to be fair at all times.

I see the advantage of proper business contact and I am maintaining close connection with the government, although I am a private citizen. I am carrying on this conversation as a private person. Once I have been asked what hinders contact between the USA and Russia I want to answer with the utmost frankness and courage, with due respect for Mr. Stalin and without giving offence. He is very objective-minded and this allows me to converse with him as man to man for the benefit of both countries and absolutely confidentially. If we could have official recognition everybody would be anxious to get here to do business on a credit or other basis, as is being done everywhere. A reason why American firms hesitate to do business and grant long-term credits is the fact that our Washington Government does not recognize your Government.

The main reason for this, however, is not simply failure in the matter of recognition. The main reason, we assume (and this may be taken as certain), is that representatives of your Government in our country are trying all the time to sow discontent and spread the ideas of Soviet power.

We have in our country what is called the “Monroe Doctrine,” which signifies that we do not want to interfere in the affairs of any other country in the world, that we confine ourselves strictly to our own affairs. For that reason we do not want any country whatever – Britain, France, Germany, Russia or any other – to interfere in our private affairs.

Russia is so vast a country that she can by herself fulfill everything that her whole people decide to do. Russia has resources of her own of every kind, and although it will take more time the Russians in the long run will be able to develop their resources independently.

It gives us pleasure to feel that in many respects we are an ideal for the Russian people, and I believe we can be very useful to that people, particularly in economizing time. Since we have solved many economic problems and our methods are copied by many countries besides Russia, such enterprises as the building of state farms imply a strengthening of trade connections, and In the final analysis trade connections will be followed by diplomatic recognition on some equitable basis. The only way for nations, as for individuals, is to speak out frankly without discourtesy, and then the time will soon come for some kind of agreement. The better our upbringing the greater our conviction that more can be achieved by reason than by any other means. Great nations can differ in opinion without straining relations and great men can come to an arrangement on major problems. They usually wind up their negotiations with a definite agreement in which they meet each other halfway, no matter how far apart their initial positions were.

Stalin: I realize that diplomatic recognition involves difficulties for the USA at the present moment. Soviet Government representatives have been subjected to abuse by the American press so much and so often that an abrupt change is difficult. Personally I do not consider diplomatic recognition decisive at the moment. What is important is a development of trade connections on the basis of mutual advantage. Trade relations need to be normalized and if this matter is put on some legal footing it would be a first and very important step towards diplomatic recognition. The question of diplomatic recognition will find its own solution when both sides realize that diplomatic relations are advantageous. The chief basis is trade relations and their normalization, which will lead to the establishment of definite legal norms.

The natural resources of our country are, of course, rich and varied. They are richer and more varied than is officially known, and our research expeditions are constantly finding new resources in our extensive country. But this is only one aspect of our potentialities. The other aspect is the fact that our peasants and workers are now rid of their former burden, the landlords and capitalists. Formerly the landlords and capitalists used to squander unproductively what today remains within the country and increases its internal purchasing power. The increase in demand is such that our industry, in spite of its rapid expansion, cannot catch up with it. The demand is prodigious, both for personal and productive consumption. This is the second aspect of our unlimited potentialities.

Both the one and the other give rise to an important basis for commercial and industrial contact with the USA as well as other developed countries.

The question as to which state is to apply its forces to these resources and potentialities of our country is the object of a complicated struggle among them. Unfortunately the USA still stands quite aloof from this struggle.

On all sides the Germans are shouting that the position of the Soviet Government is unstable and that therefore one ought not to grant any considerable credits to Soviet economic organizations. At the same time they try to monopolize trade relations with the USSR by granting it credits.

As you know, one group of British businessmen is also carrying on a fierce anti-Soviet campaign. At the same time this very group and also the McKenna group are endeavoring to organize credits for the USSR The press has already reported that in February a delegation of British industrialists and bankers will come to the USSR They intend to submit to the Soviet Government an extensive plan for trade relations and a loan.

How are we to explain this duplicity of the German and British businessmen? It is to be explained by their desire to monopolize trade relations with the USSR, frightening the USA away and pushing it aside.

At the same time, it is clear to me that the USA has better grounds for extensive business connections with the USSR than any other country. And this is not only because the USA is rich both in technical equipment and capital, but also because in no other country are our business people given such a cordial and hospitable welcome as in the USA.

As regards propaganda, I must state most emphatically that no representative of the Soviet Government has the right to interfere, either directly or indirectly, in the internal affairs of the country in which he happens to be. In this respect the most strict and definite instructions have been given to all our personnel employed in Soviet institutions in the USA I am certain that Bron and the members of his staff do not have the slightest connection with propaganda in any form whatsoever. Should any of our employees violate these strict directives as regards non-interference he would immediately be recalled and punished. Naturally we cannot answer for the actions of persons not known and not subordinate to us. But we can assume responsibility as regards interference by persons employed in our institutions abroad, and we can give the maximum guarantees on that score.

Mr. Campbell: May I tell that to Mr. Hoover?

Stalin: Of course.

Mr. Campbell: We do not know who those people are that sow discontent. But there are such people. The police find them and their literature. I know Bron and am convinced that he is an honest, straightforward gentleman, who does business honestly. But there is somebody.

Stalin: It is possible that propaganda in favor of Soviets is being carried on in the USA by members of the American Communist Party. But that party is legal in the USA, it legally participates in Presidential elections and nominates its candidates for President, and it is quite clear that we cannot be interfering in your internal affairs in this case either.

Mr. Campbell: I have no further questions. But yes, I have. When I return to the United States businessmen will ask me whether it is safe to do business with the USSR Engineering concerns in particular will be interested in the possibility of granting long-term credits. Can I answer in the affirmative? Can I obtain information on the measures now being taken by the Soviet Government to guarantee credit transactions; is there any special tax or other specific source of revenue set aside for this purpose?

Stalin: I would prefer not to sing the praises of my country. But now that the question has been put I must reply as follows: There has not been a single instance of the Soviet Government or a Soviet economic institution failing to make payment correctly and on tune on credits, whether short-term or long-term. Inquiries could be made in Germany on how we meet payments to the Germans on their credit of three hundred millions. Where do we get the means to effect payment? Mr. Campbell knows that money does not drop from the sky. Our agriculture, industry, trade, timber, oil, gold, platinum, etc. — such is the source of our payments. Therein lies the guarantee of our payments. I do not want Mr. Campbell to take my word for it. He can check my statements in Germany, for example. He will find that not once was payment postponed, although at times we actually had to pay such unheard-of interest rates as 15-20%.

As far as special guarantees are concerned, I believe there is no need to speak of this seriously in the case of the USSR

Mr. Campbell: Of course not.

Stalin: Perhaps it would not be amiss to tell you, strictly confidentially, about the loan, not credit but loan, offered by a group of British bankers – that of Balfour and Kingsley.

Mr. Campbell: May I tell Hoover about this?

Stalin: Of course, but don’t give it to the press. This group of bankers are making the following proposal:

They calculate that our debts to Britain amount approximately to £400,000,000. It is proposed that they be consolidated at 25%. That means £100,000,000 instead of £400,000,000.

Simultaneously a loan of £100,000,000 is proposed.

Thus our indebtedness will amount to £200,000,000 to be paid in installments over a period of several decades.

In return we are to give preference to the British engineering industry. This does not mean that we shall have to place our orders in Britain alone, but the British must be given preference.

Mr. Campbell, in expressing his thanks for the interview, says that Stalin has impressed him as a fair, well-informed and straightforward man. He is very glad to have had the opportunity of speaking with Stalin and considers the interview historic.

Stalin thanks Mr. Campbell for the talk.

Notes

(1) This refers to the Civil War between the northern and the Southern states of America in 1861-65.

Talk With Colonel Robins

Stalin: What can I do for you?

Robin: I consider it a great honor to have an opportunity of paying you a visit.

Stalin: There is nothing particular in that. You are exaggerating.

Robins (smiles) : What is most interesting to me is that throughout Russia I have found the names Lenin-Stalin, Lenin-Stalin, Lenin-Stalin, linked together.

Stalin: That, too, is an exaggeration. How can I be compared to Lenin?

Robin: (smiles) : Would it also be an exaggeration to say that all this time the oldest government in the world has been the government of Soviet Russia — the Council of People’s Commissars?

Stalin: That, to be sure, is not exaggerated.

Robin: The interesting and important point is that this government has not taken a reactionary direction in its work and that it is the government set up by Lenin that has proved strong. It resists all hostile lines.

Stalin: That is true.

Robins: At the May Day demonstration Russia’s development during the past fifteen years impressed itself upon me with particular clarity and sharpness, for I witnessed the May Day demonstration in 1918, and now in 1933.

Stalin: We have managed to do a few things in recent years. But fifteen years is a long period of time.

Robins: Still, in the life of a country it is a short period for such great progress as Soviet Russia has achieved during this time.

Stalin: We might have done more, but we did not manage to.

Robins: It is interesting to compare the underlying motives, the basic lines followed in the two demonstrations. The 1918 demonstration was addressed to the outside world, to the proletariat of the whole world, to the international proletariat, and was a call to revolution. Now the motive was different. Now men, women and the youth went to the demonstration to proclaim: This is the country we are building, this is the land we shall defend with all our strength!

Stalin: At that time the demonstration was agitational, but now it is a summing up.

Robins: You probably know that during these fifteen years I have interested myself in establishing rational relations between our two countries, and have endeavored to dispel the existing hostile attitude of the ruling circles in America.

Stalin: I knew of this in 1918 from what Lenin had said, and afterwards on the basis of facts. Yes, I know it.

Robins: I have come here in the capacity of a purely private citizen and speak only for myself. The chief aim of my visit is to ascertain the prospects of establishing relations, to ascertain the actual facts concerning the ability to work and the creative, inventive capacity of the Russian workers. Anti-Soviet propaganda has it that the Russian worker is lazy, does not know how to work, and ruins the machines he handles; that such a country has no future. I want to counteract this propaganda not merely with words, but armed with the facts.

The second question of interest to me in this connection is the situation in agriculture. It is being asserted that industrialization has played havoc with agriculture, that the peasants have stopped sowing, have stopped gathering in the grain. Every year it is asserted that this year Russia is sure to die of famine. I should like to learn the facts about agriculture in order to refute these assertions. I expect to see the areas where new kinds of crops have been sown this year for the first time. What interests me in particular is the development of the principal grain crops of the Soviet Union.

The third question that interests me is public education, the development of children and the youth, their upbringing; how far public education has developed in the fields of art and literature, as regards what is called creative genius, inventive capacity. In America two types of creativeness are recognized — one is the creativeness of the study and the other is broad, life-inspired creativeness, manifestations of the creative spirit in life. I am interested in knowing how children and young people are developing. I hope to see in real life how they study, how they are brought up and how they develop.

On the first and third questions I have already obtained some valuable information and count on getting additional data. On the second question, concerning the development of agriculture, I expect to be able to discover the real facts during my trip to Magnitogorsk and from there to Rostov, Kharkov and back. I expect to have a look at collective farms and see how the archaic strip system of cultivation is being eliminated and large-scale agriculture developed.

Stalin: Do you want my opinion?

Robins: Yes, I would like to have it.

Stalin: The notion that the Soviet worker is by nature incapable of coping with machines and breaks them is quite wrong.

On this score I must say that no such thing is happening here as occurred in Western Europe and America, where workers deliberately smashed machines because these deprived them of their crust of bread. Our workers have no such attitude to machinery, because in our country machines are being introduced on a mass scale in conditions where there is no unemployment, because the machines do not deprive the workers of their livelihood, as with you, but make their work easier.

As far as inability to work, the lack of culture of our workers is concerned, it is true that we have few trained workers and they do not cope with machinery as well as workers in Europe or America do. But with us this is a temporary phenomenon. If, for example, one were to investigate where throughout history the workers learned to master new technical equipment quickest – in Europe, America, or Russia during the last five years – I think it will be found that the workers learned quicker in Russia, in spite of the low level of culture. The mastery of the production of wheeled tractors in the West took several years, although, of course, technology was well developed there. Mastery of this matter in our country was quicker. For example, in Stalingrad and Kharkov the production of tractors was mastered in some 12-14 months. At the present time, the Stalingrad Tractor Works is not only working to estimated capacity, not only turns out 144 tractors per day, but sometimes even 160, that is, it works above its planned capacity. I am taking this as an example. Our tractor industry is new, it did not exist before. The same thing is true of our aircraft industry – a new, delicate business, also swiftly mastered. The automobile industry is in a similar position from the viewpoint of rapidity of mastery. The same applies to machine tool building

In my opinion, this rapid mastery of the production of machines is to be explained not by the special ability of the Russian workers but by the fact that in our country the production of, say, aircraft and engines for them, of tractors, automobiles and machine tools is considered not the private affair of individuals, but an affair of the state. In the West the workers produce to get wages, and are not concerned about anything else. With us production is regarded as a public matter, a state matter, it is regarded as a matter of honor. That is why new technique is mastered so quickly in our country.

In general, I consider it impossible to assume that the workers of any particular nation are incapable of mastering new technique. If we look at the matter from the racial point of view, then in the United States, for instance, the Negroes are considered “bottom category men,” yet they master technique no worse than the whites. The question of the mastery of technique by the workers of a particular nation is not a biological question, not a question of heredity, but a question of time: today they have not mastered it, tomorrow they will learn and master it. Everyone, including the Bushman, can master technique, provided he is helped.

Robins: The ambition, the desire to master, is also required.

Stalin: Of course. The Russian workers have more than enough desire and ambition. They consider the mastery of new technique a matter of honor.

Robins: I have already sensed this in your factories where I have seen that socialist emulation has resulted in the creation of a new kind of ardour, a new sort of ambition that money could never buy, because the workers expect to get for their work something better and greater than money can procure.

Stalin: That is true. It is a matter of honor.

Robins: I shall take with me to America diagrams showing the development of the workers’ inventiveness and their creative proposals, which improve production and effect considerable savings in production. I have seen the portraits of quite a few such worker-inventors who have done very much for the Soviet Union in the way of improving production and achieving economies.

Stalin: Our country has produced a comparatively large number of such workers. They are very capable people.

Robins: I have been in all your big Moscow factories-the AMO Automobile Works, the Ball Bearing Works, the Freser Works and others – and everywhere I came across organizations for promoting workers’ inventive-ness. The tool room in a number of these factories impressed me particularly. As these tool rooms provide their factories with highly valuable tools the workers there exert all their faculties to the utmost, give full play to their creative initiative and achieve striking results.

Stalin: In spite of that, we have many shortcomings as well. We have few skilled workers, while a great many are required. Our technical personnel is also small. Each year their number grows, and still there are fewer of them than we need. The Americans have been of great help to us. That must be admitted. They have helped more effectively than others and more boldly than others. Our thanks to them for that.

Robins: I have witnessed an internationalism in your enterprises which produced a very strong impression on me. Your factory managements are ready to adopt the technical achievements of any country – France, America, Britain or Germany – without any prejudice against these countries. And it seems to me that it is just this internationalism that will make it possible to combine in one machine all the advantages possessed by the machines of other countries and thus create more perfect machines.

Stalin: That will happen.

On the second question, about industrialization allegedly ruining agriculture, that notion is also wrong. Far from ruining agriculture in our country, industrialization is saving it, and saving our peasants. A few years ago we had a greatly disunited, small and very small, peasant economy. With the increasing division of the land, the peasant allotments shrank so much that there was no room to keep a hen. Add to this the primitive farming equipment, such as wooden ploughs and emaciated horses, which were incapable of turning up not only virgin soil, but even the ordinary, rather hard, soil, and you will have a picture of the deterioration of agriculture. Three or four years ago there were about 7,000,000 wooden ploughs in the USSR The only choice left for the peasants was this: either to lie down and die or to adopt a new form of land tenure and cultivate the land with machines. This indeed explains why the Soviet Government’s call to the peasants issued about that time – to unite their tiny plots of land into large tracts and accept from the government tractors, harvesters and threshers for working these tracts, for gathering and threshing the harvest-found a very lively response among the peasants. They naturally seized on the proposal of the Soviet Government, began to unite their plots of land into large fields, accepted the tractors and other machines and thus emerged on the broad high-way of making agriculture large scale, the new road of the radical improvement of agriculture.

It follows that industrialization, as a result of which the peasants receive tractors and other machines, has saved the peasants, has saved agriculture.

The process of uniting small peasant farms by whole villages into large farms we call collectivization, and the united large farms themselves – collective farms. The absence in our country of private property in land, the nationalization of the land, makes collectivization much easier. The land is transferred to the collective farms for their use in perpetuity and, owing to the absence of private property in land, no land can be bought or sold here. All this considerably facilitates the formation and development of collective farms.

I do not mean to say that all this, i.e., collectivization and the rest, is proceeding smoothly with us. There are difficulties, of course, and they are not small ones.

Collectivization, like every great new undertaking, has not only friends, but also enemies. Nevertheless, the overwhelming majority of the peasants are in favor of collectivization, and the number of its opponents is becoming smaller and smaller.

Robins: Every advance involves certain outlays, and this we take into account and include in our calculations.

Stalin: In spite of these difficulties, however, one thing is clear – and I have not the slightest doubt on this score: nineteen-twentieths of the peasantry have recognized, and most of the peasants accept the fact with great joy, that the collectivization of agriculture has become an irreversible fact. So then this has already been achieved. The predominant form of agriculture in our country now is the collective farm. Take the grain sowing or harvesting figures, the figures for grain production, and you will see that at the present time the individual peasants provide something like 10-15 per cent of the total gross output of grain. The rest comes from the collective farms.

Robins: I am interested in the question whether it is true that last year’s crop was gathered in unsatisfactorily, that at the present time the sowing campaign is proceeding satisfactorily, while last year the harvesting proceeded unsatisfactorily.

Stalin: Last year the harvesting was less satisfactory than the year before.

Robins: I have read your statements, and I believe they warrant the conclusion that this year the harvesting will be more successful.

Stalin: It will most probably proceed much better.

Robins: I think you appreciate no less than I do the tremendous achievement embodied in your successful industrialization of agriculture, a thing which no other country has been able to do. In all capitalist countries agriculture is undergoing a deep crisis and is in need of industrialization. The capitalist countries manage somehow or other to cope with industrial production, but not one of them can cope with agriculture. The great achievement of the Soviet Union is that it has set about the solution of this problem and is successfully coping with it.

Stalin: Yes, that is a fact.

Such are our achievements and shortcomings in the sphere of agriculture.

Now the third question — about the education of children and of the youth as a whole. Ours is a fine youth, full of the joy of life. Our state differs from all others in that it does not stint the means for providing proper care of children and for giving the youth a good upbringing.

Robins: In America it is believed that in your country the child is restricted in its development within definite, rigid bounds and that these bounds leave no freedom for the development of the creative spirit and freedom of the mind. Do you not think that freedom for the development of the creative spirit, freedom to express what is in one, is of extremely great importance?

Stalin: First, concerning restrictions — this is not true. The second is true. Undoubtedly a child cannot develop its faculties under a regime of isolation and strict regimentation, without the necessary freedom and encouragement of initiative. As regards the youth, all roads are open to it in our country and it can freely perfect itself.

In our country children are not beaten and are very seldom punished. They are given the opportunity of choosing what they like, of pursuing a path of their own choice. I believe that nowhere is there such care for the child, for its upbringing and development, as among us in the Soviet Union.

Robins: Can one consider that, as a result of the new generation being emancipated from the burden of want, being emancipated from the terror of economic conditions, this emancipation is bound to lead to a new flourishing of creative energy, to the blossoming of a new art, to a new advance of culture and art, which was formerly hampered by all these shackles?

Stalin: That is undoubtedly true.

Robins: I am not a Communist and do not understand very much about communism, but I should like America to participate in, to have the opportunity of associating itself with, the development that is taking place here in Soviet Russia, and I should like Americans to get this opportunity by means of recognition, by granting credits, by means of establishing normal relations between the two countries, for example, in the Far East, so as to safeguard the great and daring undertaking which is in process in your country, so that it may be brought to a successful conclusion.

Stalin (with a smile) : I thank you for your good wishes.

Robins: One of my closest friends is Senator Borab, who has been the staunchest friend of the Soviet Union and has been fighting for its recognition among the leaders of the American Government.

Stalin: That is so; he is doing much to promote the establishment of normal relations between our two countries. But so far, unfortunately, he has not met with success.

Robins: I am convinced that the true facts are now having a much greater effect than at any time during the past fifteen years in favor of establishing normal relations between our two countries.

Stalin: Quite true. But there is one circumstance that hinders it. Britain, I believe, hinders it (smiles) .

Robins: That is undoubtedly so. Still, the situation forces us to act above all in our own interests, and the conflict between our own interests and the course towards which other countries are driving us is impelling America, at the present time more than at any other, to establish such reciprocal relations. We are interested in the development of American exports. The only big market with great possibilities that have not been adequately utilized hitherto by anybody is the Russian market. American businessmen, if they wanted to, could grant long-term credits. They are interested in tranquillity in the Far East, and nothing could promote this more than the establishment of normal relations with the Soviet Union. In this respect, Mr. Litvinov’s Geneva declaration on the definition of an aggressor country follows entirely the line of the Briand-Kellogg Pact, which has played an important role in the matter of peace. Stabilization of reciprocal economic relations throughout the world is in the interest of America, and we fully realize that normal reciprocal economic relations cannot be attained while the Soviet Union is outside the general economic system.

Stalin: All that is true.

Robins: I was and I remain an incorrigible optimist. I believed in the leaders of the Bolshevik revolution as long as fifteen years ago. They were then depicted as agents of German imperialism; Lenin, in particular, was considered a German agent. But I considered and still consider Lenin a very great man, one of the greatest leaders in all world history.

I hope that the information I have received at first hand may help towards carrying out the plan of rapprochement and cooperation between our two countries about which I have spoken.

Stalin (smiling) : I hope it will!

Robins (smiles) : If you had expressed yourself in the American manner you would have said: “More power to your elbow.” He is not sure of having much strength left in his elbow.

Stalin: May be.

Robins: I think there is nothing greater and more magnificent than to participate in the making of a new world, to participate in what we are now engaged in. Participation in the creation and building of a new world is something of paramount significance not only now, but thousands of years hence.

Stalin: All the same this matter presents great difficulties (smiles).

Robins (smiles) : I am very grateful to you for the attention you have given me.

Stalin: And I thank you for having remembered the Soviet Union after an absence of fifteen years and for paying it another visit. (Both smile. Robins bows.)

Greetings to the Red Army on its Fifteenth Anniversary

To the Revolutionary Military Council of the U.S.S.R.

Greetings to the men, commanders and political personnel of the Workers’ and Peasants’ Red Army!

Created under the leadership of Lenin, the Red Army covered itself with undying glory in the great battles of the Civil War, in which it drove out the interventionists from the U.S.S.R. and upheld the cause of socialism in our country.

The Red Army is today a bulwark of peace and the peaceful labour of the workers and peasants, the vigilant guardian of the frontiers of the Soviet Union.

The workers of our country, who have victoriously completed the five-year plan in four years, are equipping the Red Army with new instruments of defence. Your job, comrades, is to learn to handle those instruments to perfection and to do your duty to your country, should our enemies try to attack it.

Hold high the banner of Lenin, the banner of struggle for communism!

Long live the heroic Red Army, its leaders, its Revolutionary Military Council!

J. Stalin

Reply to A Letter From Mr. Barnes

Dear Mr. Barnes,

Your fears as to the safety of American citizens in the U.S.S.R. are quite groundless.

The U.S.S.R. is one of the few countries in the world where a display of national hatred or an unfriendly attitude towards foreigners as such is punishable by law. There has never been, nor could there be, a case of any one becoming an object of persecution in the U.S.S.R. on account of his national origin. That is particularly true with regard to foreign specialists in the U.S.S.R., including American specialists, whose work in my opinion deserves our thanks.

As for the few British employees of Metro-Vickers, (1) legal action was taken against them not as Britishers but as persons who, our investigating authorities assert, have violated laws of the U.S.S.R. Was not legal action taken similarly against Russians? I do not know what bearing this case can have on American citizens.

Ready to be of service to you,

J. Stalin

Notes

(1) Metro-Vickers—a British electrical-engineering firm which had contracted with the U.S.S.R. to render technical aid to enterprises of the Soviet electrical industry. In March 1933, criminal proceedings were instituted against six Britishers, employees of the Moscow office of Metro-Vickers, on the charge of engaging in wrecking at large Soviet electric power stations.

The investigation and the trial, which took place on April 12-19, 1933, established that the arrested Metro-Vickers employees had carried on espionage in the U.S.S.R. and, with the assistance of a gang of criminal elements, had organised damage to equipment, accidents and acts of sabotage at large U.S.S.R. electric power-stations for the purpose of undermining the strength of Soviet industry and of weakening the Soviet state.