Category Archives: Social-Democracy

ICMLPO May Day Statement

FOR A MAY DAY OF UNITY AND STRUGGLE AGAINST NATIONALISM, RACISM, FASCISM AND THE POLICY OF WAR

LET’S RAISE THE FLAG OF THE PROLETARIAN INTERNATIONALISM!

Workers, labourers, young people, women and oppressed people of all countries!

The long period of poor economic growth and the increasing political instability bring out more sharply the contradictions that lacerate the capitalistic world.

Although weakened by its general and periodical crises, this system capitalist-imperialist is still strong; unless we unite and organise to combat and bring it down this decaying system will endure maintaining its exploitative and extortionist character. Nevertheless, the bases on which it is built are rotten and its contradictions sharpening; the attacks on international working class and oppressed peoples are escalating. As a result of this situation today we see:

 – The strengthening of the struggle for the markets, the protectionism, the commercial and currency disputes, the emergence of nationalism in the economic politics that embitter the problems among the imperialists and capitalistic countries, especially between USA, EU, China and Russia.

 – The intensification of the policy of war, the increase in military expenditure and the arms race. The imperialist powers and financial monopolies, in fierce rivalry between them, advance in the pillaging of resources of dependent countries. The possibility of a new World War is stirring in the Middle East. In Syria these contradictions are manifested clearly, and in the Asia-Pacific regions the imperialist arms stocks are piling up.

 – A fierce bourgeois offensive against the working class and the labouring masses, to burden them with the consequences of serious economic difficulties. The capitalists and their governments intensify the exploitation, attack the organisation of the workers, destroy their democratic rights, criminalise social protests and repress fighters of the proletariat.

 – The rise of political reaction and authoritarianism, limitations of bourgeois democracy, increasing of corruption in parties of the dominant classes, the drift towards Police States under the pretext of fighting terrorism and, in some countries, the access to power of extreme right and fascists.

 – An infamous ideological campaign by the most reactionary sectors of bourgeoisie that spread chauvinism, racism and hate against migrants; religious fanaticism, in order to deceive and divide workers and peoples, and strengthen the dominion of capital.

 – The deep crisis of social democracy, social propping of capital, with a great loss of consents, while the populist parties gain the impoverished and disappointed strata with their cynic “social”demagogy and false patriotism.

The bourgeoisie, condemning billions to poverty, hunger and unemployment attempting in this way to delay the inevitable end of its system, imposes neoliberal and reactionary regimes, destroy the environment and prepare new imperialist wars.

But the proletariat and the peoples do not give up, they resist and fight! In the world more and more numerous are the grounds of struggle against capitalistic exploitation,imperialism, its lackeys, its governments and parties. The growth of mass dissatisfaction and resistance against dominant cliques pave the way for new revolutionary waves.

Workers, labourers, young people, women and oppressed people of all countries!

Let’s unite and demonstrate on May Day -day of international solidarity of the proletariat – demanding work, health, education, social services, equal wage for equal work, equality of rights for all the workers!

No more unemployment and precariousness! Let’s demand the reduction of working hours and of the retirement age! ‘No’ to war and fascism, take our countries out of the warmongering alliances, away from the power of the advocates of war, let’s struggle for peace and freedom for our peoples!

Let’s give impetus to the united front of the working class to defend our economic and political interest and to continue the struggle until the demolition of the capitalist exploitation and oppression.

Let’s denounce and oppose the policy of class collaboration promoted by the leaders of social democracy and the trade union bureaucracy, let’s develop the line of organization and the class struggle to mobilize the masses against capital.

It’s necessary to build a broad popular coalition, leaded by the working class; to organize and develop the resistance against the capitalistic offensive, the imperialistic reaction and the politics of war; let’s struggle with the perspective to get it over with the exploiters.

It’s necessary to unite the antifascist, anti-imperialist and democratic youth to conquer a future radically different from the one that capitalists and their opportunist servants want for us.

Now more than ever we must strengthen and develop internationalist solidarity to struggle incessantly against bourgeoisie governments, to get together, to unite the proletariat and the oppressed masses of all countries in order to knock down the common enemy: imperialism!

On May Day everybody get out on streets with our red flags!

International Conference of Marxist-Leninist Parties and Organizations (ICMLPO)
April, 2017

 

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Ludo Martens: Trotsky’s role on the eve of the Second World War

by Ludo Martens
 
During the thirties, Trotsky literally became the world’s expert on anti-Communism. Even today, right-wing ideologues peruse Trotsky’s works in search of weapons against the Soviet Union under Stalin.

In 1982, when Reagan was again preaching the anti-Communist crusade, Henri Bernard, Professor Emeritus at the Royal Military School of Belgium, published a book to spread the following urgent message:

`The Communists of 1982 are the Nazis of 1939. We are weaker in front of Moscow than we were in August 1939 in front of Hitler.’

Bernard, op. cit. , p. 9.

All of the standard clichés of Le Pen , the fascist French Front National leader, are there:

`Terrorism is not the act of a few crazies. The basis of everything is the Soviet Union and the clandestine network of international terrorism.’

Ibid. , p. 121.

`Christian leftism is a Western wound.
`The synchronicity of `pacifist’ demonstrations shows how they were inspired by Moscow.’

Ibid. , p. 123.

`The British commandos who went to die in the Falklands showed that there still exist moral values in the West.’

Ibid. , p. 11.

But the tactics used by such an avowed anti-Communist as Bernard are very interesting. Here is how a man who,despite despising a `leftist Christian’, will ally himself with Trotsky.

`The private Lenin was, like Trotsky, a human being …. His personal life was full of nuance ….`Trotsky should normally have succeeded Lenin … he was the main architect of the October Revolution, the victor of the Civil War, the creator of the Red Army ….

`Lenin had much respect for Trotsky. He thought of him as successor. He thought Stalin was too brutal ….

`Within the Soviet Union, Trotsky rose up against the imposing bureaucracy that was paralysing the Communist machine ….

`Artist, educated, non-conformist and often prophet, he could not get along with the main dogmatists in the Party ….

`Stalin was nationalist, a sentiment that did not exist either in Lenin or Trotsky …. With Trotsky, the foreign Communist Parties could consider themselves as a force whose sole purpose was to impose a social order. With Stalin, they worked for the Kremlin and to further its imperialist politics.’

Ibid. , pp. 48–50.

We present here a few of the main theses that Trotsky put forward during the years 1937–1940, and that illustrate the nature of his absolute anti-Communist struggle. They allow one to understand why people in the Western security services, such as Henri Bernard, use Trotsky to fight Communists. They also shed some light on the class struggle between Bolsheviks and opportunists and on some aspects of the Purge of 1937–1938.

The enemy is the new aristocracy, the new Bolshevik bourgeoisie

For Trotsky, the main enemy was at the head of the Soviet State: it was the `new Bolshevik aristocracy’, the most anti-Socialist and anti-democratic layer of the society, a social layer that lived like `the well-to-do bourgeois of the United States’! Here is how he phrased it.

`The privileged bureaucracy … now represents the most antisocialist and the most antidemocratic sector of Soviet society.’

Trotsky, Thermidor et l’antisémitisme (22 February 1937). La lutte, pp. 143–144.

`We accuse the ruling clique of having transformed itself into a new aristocracy, oppressing and robbing the masses …. The higher layer of the bureaucracy lives approximately the same kind of life as the well-to-do bourgeois of the United States and other capitalist countries.’

Trotsky, The World Situation and Perspectives (14 February 1940). Writings, vol. 12, pp. 148–149.

This language makes Trotsky indistinguishable from the Menshevik leaders when they were leading the counter-revolutionary armed struggle, alongside the White and interventionist armies. Also indistinguishable from the language of the classical Right of the imperialist countries.

Compare Trotsky with the main anti-Communist ideologue in the International Confederation of Christian Unions (CISC), P. J. S. Serrarens, writing in 1948:

`There are thanks to Stalin, once again `classes’ and rich people …. Just like in a capitalist society, the élite is rewarded with money and power. There is what `Force Ouvrière’ (France) calls a `Soviet aristocracy’. This weekly compares it to the aristocracy created by Napoleon.’

P. J. S. Serrarens, La Russie et l’Occident (Utrecht: Confédération Internationale des Syndicats Chrétiens, n.d.), pp. 33, 37.

After World War II, the French union Force Ouvrière to which Serrarens was referring was directly created and financed by the CIA. The `Lambertist’ Trotskyist group worked, and still works, inside it. At that time, the CISC, be it in Italy or Belgium, worked directly for the CIA for the defence of the capitalist system in Europe. To mobilize the workers against Communism, it used a revolting `anti-capitalist’ demagoguery that it borrowed from the social-democrats and the Trotskyists: in the Soviet Union, there was a `new class of rich people’, a `Soviet aristocracy’.

Confronting this `new aristocracy, oppressing and robbing the masses’,

Trotsky, The World Situation, p. 148.

there were, in Trotsky’s eyes, `one hundred and sixty millions who are profoundly discontented’.

Ibid. , p. 149.

These `people’ were protecting the collectivization of the means of production and the planned economy against the `ignorant and despotic Stalinist thieves’. In other words, apart from the `Stalinists’, the rest of the society was clean and led just struggles! Listen to Trotsky:

`Twelve to fifteen millions of the privileged — there are the “people” who organize the parades, demonstrations, and ovations …. But apart from this “pays légal” as was once said in France, there exist one hundred and sixty millions who are profoundly discontented ….

`Antagonism between the bureaucracy and the people is measured by the increasing severity of the totalitarian rule ….
`The bureaucracy can be crushed only by a new political revolution.’

Ibid. , p. 149.

`(T)he economy is planned on the basis of nationalization and collectivization of the means of production. This state economy has its own laws that are less and less tolerant of the despotism, ignorance and banditry of the Stalinist bureaucracy.’

Trotsky, La capitulation de Staline (11 March 1939). La lutte, p. 216.

Since the re-establishment of capitalism was impossible in Trotsky’s eyes, any opposition, be it social-democratic, revisionist, bourgeois or counter-revolutionary, became legitimate. It was the voice of `one hundred and sixty millions who were profoundly discontented’ and aimed to `protect’ the collectivization of the means of production against the `new aristocracy’. Trotsky became the spokesperson for all the retrograde forces, anti-socialist and fascist.

Bolshevism and fascism

Trotsky was one of the first to put forward the line that Bolshevism and fascism were twins. This thesis was quite popular, during the thirties, in the reactionary Catholic parties. The Communist Party was their sworn enemy, the fascist party their most important bourgeois opponent. Once again, here is Trotsky:

`Fascism is winning victory after victory and its best ally, the one that is clearing its path throughout the world, is Stalinism.’

Trotsky, Caïn Dugachvili va jusqu’au bout (April 1938). L’appareil, p. 238.

`In fact, nothing distinguishes Stalin’s political methods from Hitler’s. But the difference in results on the international scale is remarkable.’

Trotsky, La capitulation de Staline, p. 216.

`An important part, which becomes more and more important, of the Soviet apparatus is formed of fascists who have yet to recognize themselves as such. To equate the Soviet régime with fascism is a gross historic error …. But the symmetry of the political superstructures and the similarity of totalitarian methods and of psychological profiles are striking ….
`(T)he agony of Stalinism is the most horrible and most odious spectacle on Earth.’

Trotsky, Nouvelles défections (17 March 1938). La lutte, pp. 161–162.

Trotsky here presented one of the first versions of the essential theme of CIA and fascist propaganda during the fifties, that of `red fascism’. By using the word `fascism’, Trotsky tried to redirect the hatred that the masses felt towards the terrorist dictatorship of big capital, against socialism. After 1944–1945, all the German, Hungarian, Croatian and Ukrainian fascist leaders that fled to the West put on their `democratic’ mask; they praised U.S. `democracy’, the new hegemonic force and the main source of support for retrograde and fascist forces in the world. These `old’ fascists, faithful to their criminal past, all developed the same theme: `Bolshevism is fascism, but even worse’.

Note further that at the time that European fascism had already started its war (wars in Ethiopia and Spain, annexation of Austria and Czechoslovakia), Trotsky was affirming that the `most horrible and most odious spectable’ on Earth was the `agony of socialism’!

Defeatism and capitulation in front of Nazi Germany

Trotsky became the main propagandist for defeatism and capitulationism in the Soviet Union. His demagogic `world revolution’ served to better stifle the Soviet revolution. Trotsky spread the idea that in case of fascist aggression against the Soviet Union, Stalin and the Bolsheviks would `betray’ and that under their leadership, the defeat of the Soviet Union was inevitable. Here are his ideas on this subject:

`The military … status of Soviet Russia, is contradictory. On one side we have a population of 170,000,000 awakened by the greatest revolution in history … with a more or less developed war industry. On the other side we have a political regime paralyzing all of the forces of the new society …. One thing I am sure: the political regime will not survive the war. The social regime, which is the nationalized property of production, is incomparably more powerful than the political regime, which has a despotic character …. The representatives of the political regime, or the bureaucracy, are afraid of the prospect of a war, because they know better than we that they will not survive the war as a regime.’

Trotsky, On the Eve of World War II (23 July 1939). Writings, vol. 12, p. 18.

Once again, there were, on one side, `the 170 million’, the `good’ citizens who were awoken by the Revolution. One might wonder by whom, if it was not by the Bolshevik Party and Stalin: the great peasant masses were certainly not `awoken’ during the years 1921–1928. These `170 million’ had a `developed war industry’. As if it was not Stalin’s collectivization and industrialization policies, implemented thanks to his strong will, that allowed the creation of an arms industry in record time! Thanks to his correct line, to his will, to his capacity to organize, the Bolshevik régime awoke the popular forces that had been kept in ignorance, superstition and primitive individual work. According to the provocateur Trotsky’s rantings, the Bolshevik régime paralyzed that society’s forces! And Trotsky made all sorts of absurd predictions: it was certain that the Bolshevik régime would not survive the war! Hence, two propaganda themes dear to the Nazis can be found in Trotsky’s writings: anti-Bolshevism and defeatism.

`Berlin knows to what extent the Kremlin clique has demoralized the country’s army and population through its struggle for self-preservation ….
`Stalin continues to sap the moral force and the general level of resistance of the country. Careerists with no honor, nor conscience, upon whom Stalin is forced to rely, will betray the country in difficult times.’

Trotsky, Staline et Hitler (12 March 1938). L’appareil, p. 234.

In his hatred of Communism, Trotsky incited the Nazis to wage war against the Soviet Union. He, the `eminent expert’ on the affairs of the Soviet Union, told the Nazis that they had every chance of winning the war against Stalin: the army and the population were demoralized (false!), Stalin was destroying the resistance (false!) and the Stalinists would capitulate at the beginning of the war (false!).

In the Soviet Union, this Trotskyist propaganda had two effects. It encouraged defeatism and capitulationism, through the idea that fascism was assured victory given that the USSR had such a rotten and incompetent leadership. It also encouraged `insurrections’ and assassination attempts to eliminate Bolshevik leaders `who would betray in difficult times’. A leadership that was categorically destined to fall during the war might well fall at the beginning of the war. Anti-Soviet and opportunistic groups could therefore make their attempts.

In both cases, Trotsky’s provocations directly helped the Nazis.

Ecuador: the PCMLE in the face of the proclamation of Moreno

A scandalous electoral fraud is under way to ignore the popular will expressed today at the polls. The CNE, a few minutes ago, officially gave the victory to the candidacy of Lenin Moreno with 51.07% of votes.

We DO NOT RECOGNIZE these results, they are the result of a fraudulent action. It is not possible to proclaim official results with “94% of the ballots counted” but, above all, this scrutiny has been done without transparency: the citizenship has not been able to keep track of that process because they hid the information by disabling their website. Other elements, such as the exit poll of Citizen Participation, were already raised in the previous communiqué.

In addition to not recognizing these results, we must demand that a vote-by-vote count be produced for each of the polls.

We insist on mobilizing all our forces to respect the popular will and to reject fraud.

Quito, April 2, 2017.

Central Committee Secretariat

Source

Isaac Asimov Reviews ‘1984’

Originally published in The New York Times.

REVIEW OF 1984

By Isaac Asimov

I’ve been writing a four-part article for Field Newspaper Syndicate at the beginning of each year for several years now and in 1980, mindful of the approach of the year 1984, FNS asked me to write a thorough critique of George Orwell’s novel 1984.

I was reluctant. I remembered almost nothing of the book and said so – but Denison Demac, the lovely young woman who is my contact at FNS, simply sent me a copy of it and said, ‘Read it.’

So I read it and found myself absolutely astonished at what I read. I wondered how many people who talked about the novel so glibly had ever read it; or if they had, whether they remembered it at all.

I felt I would have to write the critique if only to set people straight. (I’m sorry; I love setting people straight.)

A. THE WRITING OF 1984

In 1949, a book entitled 1984 was published. It was written by Eric Arthur Blair under the pseudonym of George Orwell.

The book attempted to show what life would be like in a world of total evil, in which those controlling the government kept themselves in power by brute force, by distorting the truth, by continually rewriting history, by mesmerising the people generally.

This evil world was placed only thirty-five years in the future so that even men who were already in their early middle age at the time the book was published might live to see it if they lived out a normal lifetime.

I, for instance, was already a married man when the book appeared and yet here we are less than four years away from that apocalyptic year (for ‘1984’ has become a year that is associated with dread because of Orwell’s book), and I am very likely to live to see it.

In this chapter, I will discuss the book, but first: Who was Blair/Orwell and why was the book written?

Blair was born in 1903 into the status of a British gentleman. His father was in the Indian civil service and Blair himself lived the life of a British Imperial official. He went to Eton, served in Burma, and so on. However, he lacked the money to be an English gentleman to the full. Then, too, he didn’t want to spend his time at dull desk jobs; he wanted to be a writer. Thirdly, he felt guilty about his status in the upper class. So he did in the late 1920s what so many well-to-do American young people in the 1960s did. In short, he became what we would have called a ‘hippie’ at a later time. He lived under slum conditions in London and Paris, consorted with and identified with slum dwellers and vagrants, managed to ease his conscience and, at the same time, to gather material for his earliest books.

He also turned left wing and became a socialist, fighting with the loyalists in Spain in the 1930s. There he found himself caught up in the sectarian struggles between the various left-wing factions, and since he believed in a gentlemanly English form of socialism, he was inevitably on the losing side. Opposed to him were passionate Spanish anarchists, syndicalists, and communists, who bitterly resented the fact that the necessities of fighting the Franco fascists got in the way of their fighting each other.

The communists, who were the best organised, won out and Orwell had to leave Spain, for he was convinced that if he did not, he would be killed From then on, to the end of his life, he carried on a private literary war with the communists, determined to win in words the battle he had lost in action.

During World War II, in which he was rejected for military service, he was associated with the left wing of the British Labour party, but didn’t much sympathise with their views, for even their reckless version of socialism seemed too well organised for him. He wasn’t much affected, apparently, by the Nazi brand of totalitarianism, for there was no room within him except for his private war with Stalinist communism. Consequently, when Great Britain was fighting for its life against Nazism, and the Soviet Union fought as an ally in the struggle and contributed rather more than its share in lives lost and in resolute courage, Orwell wrote Animal Farm which was a satire of the Russian Revolution and what followed, picturing it in terms of a revolt of barnyard animals against human masters.

He completed Animal Farm in 1944 and had trouble finding a publisher since it wasn’t a particularly good time for upsetting the Soviets. As soon as the war came to an end, however, the Soviet Union was fair game and Animal Farm was published. It was greeted with much acclaim and Orwell became sufficiently prosperous to retire and devote himself to his masterpiece, 1984.

That book described society as a vast world-wide extension of Stalinist Russia in the 1930s, pictured with the venom of a rival left-wing sectarian. Other forms of totalitarianism play a small role. There are one or two mentions of the Nazis and of the Inquisition. At the very start, there is a reference or two to Jews, almost as though they were going to prove the objects of persecution, but that vanishes almost at once, as though Orwell didn’t want readers to mistake the villains for Nazis. The picture is of Stalinism, and Stalinism only.

By the time the book came out in 1949, the Cold War was at its height. The book therefore proved popular. It was almost a matter of patriotism in the West to buy it and talk about it, and perhaps even to read parts of it, although it is my opinion that more people bought it and talked about it than read it, for it is a dreadfully dull book – didactic, repetitious, and all but motionless.

It was most popular at first with people who leaned towards the conservative side of the political spectrum, for it was clearly an anti-Soviet polemic, and the picture of life it projected in the London of 1984 was very much as conservatives imagined life in the Moscow of 1949 to be.

During the McCarthy era in the United States, 1984 became increasingly popular with those who leaned towards the liberal side of the political spectrum, for it seemed to them that the United States of the early 1950s was beginning to move in the direction of thought-control and that all the viciousness Orwell had depicted was on its way towards us.

Thus, in an afterword to an edition published in paperback by New American Library in 1961, the liberal psychoanalyst and philosopher Erich Fromm concluded as follows:

‘Books like Orwell’s are powerful warnings, and it would be most unfortunate if the reader smugly interpreted 1984 as another description of Stalinist barbarism, and if he does not see that it means us, too.’

Even if Stalinism and McCarthyism are disregarded, however, more and more Americans were becoming aware of just how ‘big’ the government was getting; how high taxes were; how increasingly rules and regulations permeated business and even ordinary life; how information concerning every facet of private life was entering the files not only of government bureaux but of private credit systems.

1984, therefore, came to stand not for Stalinism, or even for dictatorship in general – but merely for government. Even governmental paternalism seemed ‘1984ish’ and the catch phrase ‘Big Brother is watching you’ came to mean everything that was too big for the individual to control. It was not only big government and big business that was a symptom of 1984 but big science, big labour, big anything.

In fact, so thoroughly has 1984-ophobia penetrated the consciousness of many who have not read the book and have no notion of what it contains, that one wonders what will happen to us after 31 December 1984. When New Year’s Day of 1985 arrives and the United States is still in existence and facing very much the problems it faces today, how will we express our fears of whatever aspect of life fills us with apprehension? What new date can we invent to take the place of 1984?

Orwell did not live to see his book become the success it did. He did not witness the way in which he made 1984 into a year that would haunt a whole generation of Americans. Orwell died of tuberculosis in a London hospital in January 1950, just a few months after the book was published, at the age of forty-six. His awareness of imminent death may have added to the bitterness of the book.

B. THE SCIENCE FICTION OF 1984

Many people think of 1984 as a science fiction novel, but almost the only item about 1984 that would lead one to suppose this is the fact that it is purportedly laid in the future. Not so! Orwell had no feel for the future, and the displacement of the story is much more geographical than temporal.

The London in which the story is placed is not so much moved thirty-five years forward in time, from 1949 to 1984, as it is moved a thousand miles east in space to Moscow. Orwell imagines Great Britain to have gone through a revolution similar to the Russian Revolution and to have gone through all the stages that Soviet development did. He can think of almost no variations on the theme. The Soviets had a series of purges in the 1930s, so the Ingsoc (English Socialism) had a series of purges in the 1950s. The Soviets converted one of their revolutionaries, Leon Trotsky, into a villain, leaving his opponent, Joseph Stalin, as a hero. The Ingsoc, therefore, convert one of their revolutionaries, Emmanuel Goldstein, into a villain, leaving his opponent, with a moustache like Stalin, as a hero.

There is no ability to make minor changes, even. Goldstein, like Trotsky, has ‘a lean Jewish face, with a great fuzzy aureole of white hair and a small goatee beard’. Orwell apparently does not want to confuse the issue by giving Stalin a different name so he calls him merely ‘Big Brother’.

At the very beginning of the story, it is made clear that television (which was coming into existence at the time the book was written) served as a continuous means of indoctrination of the people, for sets cannot be turned off. (And, apparently, in a deteriorating London in which nothing works, these sets never fail.)

The great Orwellian contribution to future technology is that the television set is two-way, and that the people who are forced to hear and see the television screen can themselves be heard and seen at all times and are under constant supervision even while sleeping or in the bathroom. Hence, the meaning of the phrase ‘Big Brother is watching you’.

This is an extraordinarily inefficient system of keeping everyone under control. To have a person being watched at all times means that some other person must be doing the watching at all times (at least in the Orwellian society) and must be doing so very narrowly, for there is a great development of the art of interpreting gesture and facial expression. One person cannot watch more than one person in full concentration, and can only do so for a comparatively short time before attention begins to wander. I should guess, in short, that there may have to be five watchers for every person watched. And then, of course, the watchers must themselves be watched since no one in the Orwellian world is suspicion-free. Consequently, the system of oppression by two-way television simply will not work.

Orwell himself realised this by limiting its workings to the Party members. The ‘proles’ (proletariat), for whom Orwell cannot hide his British upper-class contempt, are left largely to themselves as subhuman. (At one point in the book, he says that any prole that shows ability is killed – a leaf taken out of the Spartan treatment of their helots twenty-five hundred years ago.)

Furthermore, he has a system of volunteer spies in which children report on their parents, and neighbours on each other. This cannot possibly work well since eventually everyone reports everyone else and it all has to be abandoned.

Orwell was unable to conceive of computers or robots, or he would have placed everyone under non-human surveillance. Our own computers to some extent do this in the IRS, in credit files, and so on, but that does not take us towards 1984, except in fevered imaginations. Computers and tyranny do not necessarily go hand in hand. Tyrannies have worked very well without computers (consider the Nazis) and the most computerised nations in today’s world are also the least tyrannical.

Orwell lacks the capacity to see (or invent) small changes. His hero finds it difficult in his world of 1984 to get shoelaces or razor blades. So would I in the real world of the 1980s, for so many people use slip-on shoes and electric razors.

Then, too, Orwell had the technophobic fixation that every technological advance is a slide downhill. Thus, when his hero writes, he ‘fitted a nib into the penholder and sucked it to get the grease off. He does so ‘because of a feeling that the beautiful creamy paper deserved to be written on with a real nib instead of being scratched with an ink-pencil’.

Presumably, the ‘ink-pencil’ is the ball-point pen that was coming into use at the time that 1984 was being written. This means that Orwell describes something as being written’ with a real nib but being ‘scratched’ with a ball-point. This is, however, precisely the reverse of the truth. If you are old enough to remember steel pens, you will remember that they scratched fearsomely, and you know ball-points don’t. This is not science fiction, but a distorted nostalgia for a past that never was. I am surprised that Orwell stopped with the steel pen and that he didn’t have Winston writing with a neat goose quill.

Nor was Orwell particularly prescient in the strictly social aspects of the future he was presenting, with the result that the Orwellian world of 1984 is incredibly old-fashioned when compared with the real world of the 1980s.

Orwell imagines no new vices, for instance. His characters are all gin hounds and tobacco addicts, and part of the horror of his picture of 1984 is his eloquent description of the low quality of the gin and tobacco. He foresees no new drugs, no marijuana, no synthetic hallucinogens. No one expects an s.f. writer to be precise and exact in his forecasts, but surely one would expect him to invent some differences.

In his despair (or anger), Orwell forgets the virtues human beings have. All his characters are, in one way or another, weak or sadistic, or sleazy, or stupid, or repellent. This may be how most people are, or how Orwell wants to indicate they will all be under tyranny, but it seems to me that under even the worst tyrannies, so far, there have been brave men and women who have withstood the tyrants to the death and whose personal histories are luminous flames in the surrounding darkness. If only because there is no hint of this in 1984, it does not resemble the real world of the 1980s.

Nor did he foresee any difference in the role of women or any weakening of the feminine stereotype of 1949. There are only two female characters of importance. One is a strong, brainless ‘prole’ woman who is an endless washerwoman, endlessly singing a popular song with words of the type familiar in the 1930s and 1940s (at which Orwell shudders fastidiously as ‘trashy’, in blissful non-anticipation of hard rock).

The other is the heroine, Julia, who is sexually promiscuous (but is at least driven to courage by her interest in sex) and is otherwise brainless. When the hero, Winston, reads to her the book within a book that explains the nature of the Orwellian world, she responds by falling asleep – but then since the treatise Winston reads is stupefyingly soporific, this may be an indication of Julia’s good sense rather than the reverse. In short, if 1984 must be considered science fiction, then it is very bad science fiction.

C. THE GOVERNMENT OF 1984

Orwell’s 1984 is a picture of all-powerful government, and it has helped make the notion of ‘big government’ a very frightening one.

We have to remember, though, that the world of the late 1940s, during which Orwell was writing his book, was one in which there had been, and still were, big governments with true tyrants – individuals whose every wish, however unjust, cruel or vicious, was law. What’s more, it seemed as though such tyrants were irremovable except by the chance of outside force. Benito Mussolini of Italy, after twenty-one years of absolute rule, was overthrown, but that was only because his country was suffering defeat in war.

Adolf Hitler of Germany, a far stronger and more brutal tyrant, ruled with a steel hand for twelve years, yet even defeat did not, in itself, bring about his overthrow. Though the area over which he ruled shrank and shrank and shrank, and even though overwhelming armies of his adversaries closed in from the east and west, he remained absolute tyrant over whatever area he controlled – even when it was only over the bunker in which he committed suicide. Until he removed himself, no one dared remove him. (There were plots against him, to be sure, but they never worked, sometimes through quirks of fate that seemed explainable only by supposing that someone down there liked him.)

Orwell, however, had no time for either Mussolini or Hitler. His enemy was Stalin, and at the time that 1984 was published, Stalin had ruled the Soviet Union in a ribbreaking bear hug for twenty-five years, had survived a terrible war in which his nation suffered enormous losses and yet was now stronger than ever. To Orwell, it must have seemed that neither time nor fortune could budge Stalin, but that he would live on forever with ever increasing strength. – And that was how Orwell pictured Big Brother.

Of course, that was not the way it really was. Orwell didn’t live long enough to see it but Stalin died only three years after 1984 was published, and it was not long after that that his regime was denounced as a tyranny by – guess who – the Soviet leadership.

The Soviet Union is still the Soviet Union, but it is not Stalinist, and the enemies of the state are no longer liquidated (Orwell uses ‘vaporised’ instead, such small changes being all he can manage) with quite such abandon.

Again, Mao Tse-tung died in China, and while he himself has not been openly denounced, his close associates, as ‘the Gang of Four’, were promptly demoted from Divinity, and while China is still China, it is not Maoist any longer.

Franco of Spain died in his bed and while, to his very last breath, he remained the unquestioned leader he had been for nearly forty years, immediately after that last breath, Fascism abruptly dwindled in Spain, as it had in Portugal after Salazar’s death.

In short, Big Brothers do die, or at least they have so far, and when they die, the government changes, always for the milder.

This is not to say that new tyrants may not make themselves felt, but they will die, too. At least in the real 1980s we have every confidence they will and the undying Big Brother is not yet a real threat.

If anything, in fact, governments of the 1980s seem dangerously weak. The advance of technology has put powerful weapons – explosives, machine guns, fast cars into the hands of urban terrorists who can and do kidnap, hijack, gun down, and take hostages with impunity while governments stand by more or less helplessly.

In addition to the immortality of Big Brother, Orwell presents two other ways of maintaining an eternal tyranny.

First -,present someone or something to hate. In the Orwellian world it was Emmanuel Goldstein for whom hate was built up and orchestrated in a robotized mass function.

This is nothing new, of course. Every nation in the world has used various neighbours for the purpose of hate. This sort of thing is so easily handled and comes as such second nature to humanity that one wonders why there have to be the organised hate drives in the Orwellian world.

It needs scarcely any clever psychological mass movements to make Arabs hate Israelis and Greeks hate Turks and Catholic Irish hate Protestant Irish – and vice versa in each case. To be sure, the Nazis organised mass meetings of delirium that every participant seemed to enjoy, but it had no permanent effect. Once the war moved on to German soil, the Germans surrendered as meekly as though they had never Sieg-Heiled in their lives.

Second – rewrite history. Almost every one of the few individuals we meet in 1984 has, as his job, the rapid rewriting of the past, the readjustment of statistics, the overhauling of newspapers – as though anyone is going to take the trouble to pay attention to the past anyway.

This Orwellian preoccupation with the minutiae of ‘historical proof’ is typical of the political sectarian who is always quoting what has been said and done in the past to prove a point to someone on the other side who is always quoting something to the opposite effect that has been said and done.

As any politician knows, no evidence of any kind is ever required. It is only necessary to make a statement – any statement – forcefully enough to have an audience believe it. No one will check the lie against the facts, and, if they do, they will disbelieve the facts. Do you think the German people in 1939 pretended that the Poles had attacked them and started World War II? No! Since they were told that was so, they believed it as seriously as you and I believe that they attacked the Poles.

To be sure, the Soviets put out new editions of their Encyclopaedia in which politicians rating a long biography in earlier editions are suddenly omitted entirely, and this is no doubt the germ of the Orwellian notion, but the chances of carrying it as far as is described in 1984 seem to me to be nil – not because it is beyond human wickedness, but because it is totally unnecessary.

Orwell makes much of ‘Newspeak’ as an organ of repression – the conversion of the English language into so limited and abbreviated an instrument that the very vocabulary of dissent vanishes. Partly he got the notion from the undoubted habit of abbreviation. He gives examples of ‘Communist International’ becoming ‘Comintern’ and ‘Geheime Staatspolizei’ becoming ‘Gestapo’, but that is not a modern totalitarian invention. ‘Vulgus mobile’ became ‘mob’; ‘taxi cabriolet’ became ‘cab’; ‘quasi-stellar radio source’ became ‘quasar’; ‘light amplification by stimulated emission of radiation’ became ‘laser’ and so on. There is no sign that such compressions of the language have ever weakened it as a mode of expression.

As a matter of fact, political obfuscation has tended to use many words rather than few, long words rather than short, to extend rather than to reduce. Every leader of inadequate education or limited intelligence hides behind exuberant inebriation of loquacity.

Thus, when Winston Churchill suggested the development of ‘Basic English’ as an international language (something which undoubtedly also contributed to ‘Newspeak’), the suggestion was stillborn. We are therefore in no way approaching Newspeak in its condensed form, though we have always had Newspeak in its extended form and always will have.

We also have a group of young people among us who say things like ‘Right on, man, you know. It’s like he’s got it all together, you know, man. I mean, like you know -‘ and so on for five minutes when the word that the young people are groping for is ‘Huh?’

That, however, is not Newspeak, and it has always been with us, too. It is something which in Oldspeak is called ‘inarticulacy’ and it is not what Orwell had in mind.

D. THE INTERNATIONAL SITUATION OF 1984

Although Orwell seemed, by and large, to be helplessly stuck in the world of 1949, in one respect at least he showed himself to be remarkably prescient, and that was in foreseeing the tripartite split of the world of the 1980s.

The international world of 1984 is a world of three superpowers: Oceania, Eurasia, and Eastasia – and that fits in, very roughly, with the three actual superpowers of the 1980s: the United States, the Soviet Union, and China.

Oceania is a combination of the United States and the British Empire. Orwell, who was an old Imperial civil servant, did not seem to notice that the British Empire was in its last throes in the late 1940s and was about to dissolve. He seems to suppose, in fact, that the British Empire is the dominant member of the British-American combination.

At least, the entire action takes place in London and phrases such as ‘the United States’ and ‘Americans’ are rarely, if ever, mentioned. But then, this is very much in the fashion of the British spy novel in which, ever since World War II, Great Britain (currently about the eighteenth strongest military and economic power in the world) is set up as the great adversary of the Soviet Union, or of China, or of some invented international conspiracy, with the United States either never mentioned or reduced to the small courtesy appearance of an occasional CIA agent.

Eurasia is, of course, the Soviet Union, which Orwell assumes will have absorbed the whole European continent. Eurasia, therefore, includes all of Europe, plus Siberia, and its population is 95 per cent European by any standard.

Nevertheless, Orwell describes the Eurasians as ‘solid-looking men with expressionless Asiatic faces’. Since Orwell still lives in a time when ‘European’ and ‘Asiatic’ are equivalent to ‘ ‘hero’ and ‘villain’, it is impossible to inveigh against the Soviet Union with the proper emotion if it is not thought of as ‘Asiatic’. This comes under the heading of what Orwellian Newspeak calls ‘double-think’, something that Orwell, like any human being, is good at.

It may be, of course, that Orwell is thinking not of Eurasia, or the Soviet Union, but of his great bête noire, Stalin. Stalin is a Georgian, and Georgia, lying south of the Caucasus mountains, is, by strict geographic considerations, part of Asia.

Eastasia is, of course, China and various dependent nations. Here is prescience. At the time Orwell was writing 1984, the Chinese communists had not yet won control of the country and many (in the United States, in particular) were doing their best to see that the anti-Communist, Chiang Kai-shek, retained control. Once the communists won, it became part of the accepted credo of the West that the Chinese would be under thorough Soviet control and that China and the Soviet Union would form a monolithic communist power.

Orwell not only foresaw the communist victory (he saw that victory everywhere, in fact) but also foresaw that Russia and China would not form a monolithic bloc but would be deadly enemies.

There, his own experience as a Leftist sectarian may have helped him. He had no Rightist superstitions concerning Leftists as unified and indistinguishable villains. He knew they would fight each other as fiercely over the most trifling points of doctrine as would the most pious of Christians.

He also foresaw a permanent state of war among the three; a condition of permanent stalemate with the alliances ever-shifting, but always two against the strongest. This was the old-fashioned ‘balance of power’ system which was used in ancient Greece, in medieval Italy, and in early modern Europe. Orwell’s mistake lay in thinking there had to be actual war to keep the merry-go-round of the balance of power in being. In fact, in one of the more laughable parts of the book, he goes on and on concerning the necessity of permanent war as a means of consuming the world’s production of resources and thus keeping the social stratification of upper, middle, and lower classes in being. (This sounds like a very Leftist explanation of war as the result of a conspiracy worked out with great difficulty.)

In actual fact, the decades since 1945 have been remarkably war-free as compared with the decades before it. There have been local wars in profusion, but no general war. But then, war is not required as a desperate device to consume the world’s resources. That can be done by such other devices as endless increase in population and in energy use, neither of which Orwell considers.

Orwell did not foresee any of the significant economic changes that have taken place since World War II. He did not foresee the role of oil or its declining availability or its increasing price, or the escalating power of those nations who control it. I don’t recall his mentioning the word ‘oil’.

But perhaps it is close enough to mark Orwellian prescience here, if we substitute ‘cold war’ for ‘war’. There has been, in fact, a more or less continual ‘cold war’ that has served to keep employment high and solve some short-term economic problems (at the cost of creating long-term greater ones). And this cold war is enough to deplete resources.

Furthermore, the alliances shifted as Orwell foresaw and very nearly as suddenly. When the United States seemed all-powerful, the Soviet Union and China were both vociferously anti-American and in a kind of alliance. As American power decreased, the Soviet Union and China fell apart and, for a while, each of the three powers inveighed against the other two equally. Then, when the Soviet Union came to seem particularly powerful, a kind of alliance sprang up between the United States and China, as they co-operated in vilifying the Soviet Union, and spoke softly of each other.

In 1984 every shift of alliance involved an orgy of history rewriting. In real life, no such folly is necessary. The public swings from side to side easily, accepting the change in circumstance with no concern for the past at all. For instance, the Japanese, by the 1950s, had changed from unspeakable villains to friends, while the Chinese moved in the opposite direction with no one bothering to wipe out Pearl Harbour. No one cared, for goodness’ sake.

Orwell has his three great powers voluntarily forgo the use of nuclear bombs, and to be sure such bombs have not been used in war since 1945. That, however, may be because the only powers with large nuclear arsenals, the United States and the Soviet Union, have avoided war with each other. Were there actual war, it is extremely doubtful that one side or the other would not finally feel it necessary to push the button. In that respect, Orwell perhaps falls short of reality.

London does, however, occasionally suffer a missile strike, which sounds very much like a V-1 or V-2 weapon of 1944, and the city is in a 1945-type shambles. Orwell cannot make 1984 very different from 1944 in this respect. Orwell, in fact, makes it clear that by 1984, the universal communism of the three superpowers has choked science and reduced it to uselessness except in those areas where it is needed for war. There is no question but that the nations are more eager to invest in science where war applications are in clear view but, alas, there is no way of separating war from peace where applications are in question.

Science is a unit, and everything in it could conceivably be related to war and destruction. Science has therefore not been choked off but continues not only in the United States and Western Europe and Japan, but also in the Soviet Union and in China. The advances of science are too numerous to attempt to list, but think of lasers and computers as ‘war weapons’ with infinite peaceful applications.

To summarise, then: George Orwell in 1984 was, in my opinion, engaging in a private feud with Stalinism, rather that attempting to forecast the future. He did not have the science fictional knack of foreseeing a plausible future and, in actual fact, in almost all cases, the world of 1984 bears no relation to the real world of the 1980s.

The world may go communist, if not by 1984, then by some not very much later date; or it may see civilisation destroyed. If this happens, however, it will happen in a fashion quite different from that depicted in 1984 and if we try to prevent either eventuality by imagining that 1984 is accurate, then we will be defending ourselves against assaults from the wrong direction and we will lose.

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

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!!!

Communist Party Alliance: On Sectarianism

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The ‘left’ in Britain is characterised by sectarianism. What are the main reasons for this in an imperialist country? John Green examines the causes.

The Causes of Sectarianism

Bourgeois Social Conditions

Divisions in the revolutionary movement are not formed simply from ideological differences, but sometimes represent class and social divisions. The social conditions of many of those who describe themselves as Marxist-Leninist in this country are largely at the root of their sectarianism.

Britain is an imperialist country. In this country, productive industry ranks a poor second to profits received from exploiting other countries, which through a system of ‘aid’ and debt are maintained in neo-colonial servitude. This determines that a petty-bourgeois mentality is created in a section of the proletariat and the intelligentsia in Britain, and this sectarian mentality infects many of those who are drawn into the ranks of the revolutionary left. Thus for some communists the prime requirement of communist unity is that they themselves must lead it. Any initiative, to be acceptable to these “leaders”, must be their own idea. When those affected by this petty-bourgeois mentality do occasionally and for a time gain the leadership of a grouping, democracy, principle and all else is subordinated to their own leadership pretensions.

Expediency

A form of sectarianism which is no less damaging is met with in those opportunists who refuse to work with others not on the basis of principle, but on the basis of expediency, for tactical gains. These do great harm to the cause of revolutionary unity, in that they appear to legitimise the absence of principle.

Dogmatic Doctrinairism

Another form which sectarianism often takes is in insisting upon adherence to the elaboration of Marxism-Leninism by a great historical figure as an ’ a priori ‘ requirement before any attempt to form revolutionary unity can take place. They use this position as an apparently principled justification for their unwillingness to collaborate. This is a mistake. Ideological unity cannot be based upon an historical figure. It must be around fundamental questions of principle, strategy and tactics, and each disputed question must be put under discussion. Only by doing this, can the real lines of demarcation, which are concealed behind these allegiances, be drawn and unity be attained.

Opposing Sectarianism

Dialectical Unity

The first principle for the proletarian revolutionary who is not, like the petty-bourgeois revolutionary, willing to compromise with imperialism until unity is achieved on terms exactly to his satisfaction, is to achieve a dialectical, fighting unity with fellow communists. The unity we must work for is around Marxist principles consolidated in a programme.

The unity of the Communist Party must be a dialectical unity, one which contains contradictions. We need to be able to disagree whilst working together to achieve the Party programme. We must not slurry over contradictions within our ranks for the purpose of preserving formal unity, but we must not transform these differences into a sharp dividing line.

Dialectical unity finds expression within prevailing social conditions. Where there is disagreement on historical questions, unity can exist within a party where objective circumstances permit. This is the case when circumstances are unchanging and principles are not yet being tested by prevailing social conditions. Only at the turning-points, where objective social circumstances are in a process of rapid change (e.g. a revolutionary situation is emerging), do significant differences emerge.

It is important to realise that these differences will not necessarily reflect at all the great questions of the past. Even where people have taken a view on an apparently similar historical question, new circumstances may elicit a new understanding of contemporary events. Prevailing social conditions may demand a change in ideas.

Formal (Idealist) Unity

To unite only with those with whom we agree on historical questions is a form of idealist unity, not dialectical unity, in that it brushes aside consideration of prevailing conditions and absolutises differences. This purist approach leaves the question of building unity for the purpose of revolution and the establishment of the dictatorship of the proletariat to the indefinite future, when no doubt prevailing social conditions will force us to address these questions. The proponents of this absolute ‘unity’, in practice, subordinate questions of principle to organisational questions.

Attempts at idealist unity look for formal organisational means to efface differences or manage them without resolving them, such as by banning the disputed subject.

The principle of dialectical unity should not be confused with the policy of those groupings who struggle for organisational objectives instead of principles. Such groupings, it is true, unite people of different views, but they subordinate the clarification and resolution of their differences to success in the organisational struggle. This would be only a formal unity. A party built on such lines would tend to fall apart in the course of sharp struggles. If organisational means were employed to preserve the autonomy of those with an aversion to centralism, there would be a lack of internal discipline and the party would not serve the interests of the proletariat. The lumping together of autonomous groupings which do not recognise (or recognise only formally) the legitimacy of the elected leaders, and even creating institutions for the advantage of factions, would be an expression of idealist unity. It would subvert democratic centralism and lay the basis for the principle of opportunism.

Abstract Unity

Unity on the basis of abstract principles would also result in a purely formal unity. This was evident at the time of the split with the opportunists of the Second International during World War One. Trotskyists of the past claimed to uphold the dictatorship of the proletariat, but in practice counterposed socialism in one country to world revolution. For this reason, discussions need to clarify the depth of existing differences.

Non-Antagonistic Contradictions

Different trends emerge in the party in the course of struggle and it is possible for these to be in unity at a certain juncture when objective circumstances make this necessary in order to achieve the Party programme or to defend party policy. Examples of this are the unity of Bukharin and Stalin to defeat the left deviation; and the fact that Trotsky was for a time a leading member of the Bolsheviks (but lost little time in demonstrating his inability to adhere to Party discipline). It is only at turning-points in social conditions that significant differences emerge. At such times, ‘one becomes two’, but in such a way that the party is strengthened.

During certain periods, contradictions may be non-antagonistic. Part of the sectarianism of Marxist-Leninists in this country is that they frequently fail to distinguish non-antagonistic contradictions at particular periods. Differences over the ‘historical’ application of Marxist-Leninist principles are non-antagonistic contradictions unless prevailing social conditions are such that the questions that called forth these historical questions are again raised from the realm of the possible to become living questions.

The Party Programme

Differences continually emerge from objective conditions and must be resolved within the party. The party must establish a political programme and an organisational structure designed to put the programme into effect. The purpose of the organisation is to realise the programme.

The form of organisation appropriate to the Communist Party is democratic centralism, which contains both differences (democracy) and concrete unity (centralism).

It is the programme, rather than merely abstract adherence to principles, which is primary and which decides the nature of the party and who is able to further its objectives.

Lines of Demarcation

Lenin, in the Declaration of the Editorial Board of Iskra, declared ‘Before we can unite, and in order that we may unite, we must first of all draw firm and definite lines of demarcation. Otherwise, our unity will be purely fictitious, it will conceal the prevailing confusion and hinder its radical elimination.’ The unity he was working towards was the unity of Marxists, in opposition to those who ‘corrected’ Marxism and removed its revolutionary content.

From the Soviet period up to the present day, lines of demarcation have been drawn between those who upheld the principles of Marxism-Leninism, of which Stalin represented the main defence, including the possibility of socialism in a single country and proletarian internationalism, and those who attacked these principles (Imperialism, Social Democracy, Trotsky, Soviet revisionists).

These principles were developed and applied historically through practice and it is our task to continue to apply and develop them in our own practice today. We must view our principles in the fullness of their historical application but must not allow our differences to bar us from achieving revolutionary unity.

Author: John Green
The Marxist-Leninist Research Bureau
NCMLU

Source

Press Release of Labor Party (Turkey) On Recent Developments

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The people’s choice is not one between a military coup or the one-man, one-party dictatorship.

The answer is the protection of democratic rights and political freedoms; the struggle for a people’s democracy. The mainstream political landscape in Turkey is littered with frequent attempted and successful military coups. The cost of these have always been countless deaths, torture, persecution and more violent attacks on rights and freedoms.

Attempts to drown the calls of the oppressed and exploited peoples, for democracy and freedoms, with military coups and consequent dominant politics is nothing new. Military coup attempts are not and could never be the antidote to the one-man, one-party politics pursued today by Tayyip Erdoğan and the AKP government.

Furthermore, such attempts will be used as a basis for quicker and more violent implementation of these policies.

Erdoğan and the AKP government, calling their supporters out on to the streets “against the plotters”, will attempt to use this situation to repair their shaken reputation – the result of opportunistic and inconsistent internal and external politics – and to reach their reactionary and fascistic aims. The scenes of swinging saw blades and swords, a confrontational attitude reminiscent of IS, are indicative of this happening.

It is clear that all citizens of Turkey from different nationalities and beliefs, squeezed into a position between a rock and a hard place, can not be subjected to a choice only between a military coup and a one-man, one-party dictatorship.

The only choice and the path to the liberation of the people is the establishment of a Turkey that is truly secular and democratic. The way out of this anti-democratic seige is the safeguarding of democratic rights and political freedoms. The solution is the struggle for a people’s democracy.

Selma GÜRKAN
Chairwoman
Emek Partisi
Labour Party (Turkey)

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

brexit

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)

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

Engels in the Struggle for Revolutionary Marxism

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D.Z. Manuilsky

Speech on the Fortieth Anniversary of the death of Friedrich Engels, delivered at the Seventh Congress of the Communist International, August 5, 1935

The Seventh World Congress of the Communist International was held in Moscow from July 25 to August 20, 1935.

Contents

I. Engels and His Role in the Creation of Scientific Socialism

II. Engels as Leader of the Proletariat and Master of Proletarian Tactics

III. We Continue the Work of Engels

Engels and His Role in the Creation of Scientific Socialism

Forty years ago occurred the death of Friedrich Engels, Karl Marx’s closest comrade-in-arms, one of the greatest revolutionary thinkers in human history, organizer and leader of the international proletarian party. The names of Karl Marx and Friedrich Engels will forever remain in the memories of the peoples as the names of two great geniuses, of the creators of scientific socialism and the founders of the international Communist movement.

The revolutionary activities of Engels are inseparably bound up with the life and activities of Marx.

Forty years ago Lenin wrote:

“Ancient legends tell of various touching examples of friendship. The European proletariat may say that its science was created by two scholars and fighters whose relations surpass all the most touching tales of the ancients concerning human friendship.”*

* Lenin, Marx, Engels, Marxism, p. 40. International Publishers, New York.

The fortieth anniversary of the death of Engels which we are commemorating today coincides with the change that has occurred in the world labor movement, with the turn – caused by the influence of the victory of socialism in the U.S.S.R. and the very profound crisis of capitalism – which the broad masses of the Social-Democratic and non-party workers have taken towards Communism, and with the accelerated collapse of the Second International.

The victory of the proletariat in the U.S.S.R. and the growth of the Communist movement all over the world are the direct result of the fact that the Bolshevik Party, the international Party of Lenin and Stalin, has remained loyal to the end to the teachings of Marx and Engels.

The collapse of the Second International, the defeat and bankruptcy of its parties, are the historically inevitable consequences of their desertion from the doctrines of Marx and Engels, of their vulgarization and distortion of Marxism. Millions of toilers – gripped in the vise of the crisis, hanging on the gallows, incarcerated in fascist jails and lying in the trenches of the imperialist wars that are flaring up – are now paying dearly for this desertion.

The opportunists of all colors, of the Second International – Bernstein, Cunow, Kautsky, Vendervelde and others like them – accused Engels of all mortal sins and opposed Marx and Engels in their effort to “refute” both, their real object being to extract the revolutionary spirit from Marxism. It was not an accident, it was inevitable, and absolutely in keeping with the laws of development, that the revisionists in the Second International, who first fought precisely against Engels on all the fundamental questions of theory and practice, passed to the position of cooperation with the bourgeoisie and gradually slipped into the mire of reaction.

From the very outset of his revolutionary activities Engels, together with Marx, waged a fight to lay the foundations of and to develop scientific socialism in the sphere of economics and the social sciences, in the sphere of philosophy and natural sciences; he waged a struggle to permeate the minds of the proletarian masses with revolutionary Marxism as widely as possible.

In the struggle against the German “true socialists”, those sentimental “high priests of human justice and right”, those pompous prophets of “class peace” and “peace among the peoples” in capitalist society, those pseudo-pacifists and supine humanitarians, Engels imbued the proletarian masses with ruthless hatred for the class enemy, called for the complete rupture with him and his ideological lackeys, the priests, the lawyers and the parliamentarians.

Engels fought furiously against the Lassalleans, the “royal Prussian socialists” who licked the jackboots of Bismarck, and their “state superstition”, their idealistic prejudices and loud talk about “general human rights”, and their “iron law of wages” which denied the necessity of independent economic struggle and independent industrial organization of the working class. Upholding and popularizing Marx’s political economy and emphasizing the inseparable connection that exists between the economic and political struggle of the proletariat, Engels exposed the reformist nature of Lassalleanism, its adaptation to the Junker-bourgeois state, its betrayal of the proletarian revolution.

In opposition to Proudhonism and Bakuninism, these two petty-bourgeois reactionary, utopian, anarchist trends in the labor movement, which for the mass revolutionary struggle substituted sonorous phrases about “mutual aid by means of peaceful cooperation”, “the equality of classes”, “the destruction of all states”, Engels urged the necessity of a political party of the proletariat, of a political struggle for the dictatorship of the working class.

In the struggle against all pseudo-Socialist and pseudo-revolutionary theories, Engels, on the basis of Marx’s analysis of the economic relationships of bourgeois society, proved the inevitability of the violent overthrow of the bourgeoisie and the world historical role of the proletariat as the grave-digger of capitalism and the creator of the new socialist system. Together with Marx, Engels proved that the class struggle must lead to the dictatorship of the proletariat as the state of the transition period from capitalism to communism, that without the leadership of its own independent political party the proletariat cannot achieve victory in this struggle.

Engels combined a genuinely scientific analysis that penetrated the very “core” of historical phenomena, of economic and political processes, with the burning passion of a leader and teacher of the proletariat who called upon the masses of the workers to enter the revolutionary struggle. Scientific socialism illuminates the whole past, present and future of human society, it shows the proletariat what the exploited and enslaved classes were before it, what it is itself, and what it must become. Hence, Engels taught the workers: act in accordance with this revolutionary theory, fight for the proletarian dictatorship, and your emancipation will mean the emancipation of all humanity, the end of all exploitation, oppression and violence!

This idea of the unity of revolutionary theory and revolutionary action runs like a red thread through all Engels’ scientific works, through all his polemical articles and his party directives.

In the sphere of political economy Engels formulated the inevitable law of all exploiting societies, that:

“All progress in production is simultaneously regression in the position of the oppressed class, i.e., of the overwhelming majority. All good for some is simultaneously evil for others; every new emancipation of one class means the new enslavement of other classes.” *

* Engels, Origin of the Family, Private Property and the State, Chapter IX.

This inherent contradiction of exploiting society finds most striking expression under capitalism. The living vehicle of this contradiction is the proletariat, the class that is bereft of all means of production, and is, therefore, the most revolutionary class among all the exploited classes that history has ever known. Engels said:

“By more and more transforming the great majority of the population into proletarians, the capitalist mode of production brings into being the force which, under penalty of its own destruction, is compelled to carry out this revolution.”*

* Engels, Herr Eugen Duehring’s Revolution in Science (Anti-Duehring), p. 314. International Publishers, New York.

In one of his earliest works Engels depicts the conditions of the working class under capitalism in a manner that is amazing for its stern veracity. Over ninety years have passed since that work was written. Read this description to any worker in any capitalist country; he will see himself and the fate to which capitalism dooms him as if reflected in a mirror.

“When one individual inflicts bodily injury upon another, such injury that death results, we call the deed manslaughter; when the assailant knew in advance that the injury would be fatal, we call this deed murder. But when society places hundreds of proletarians in such a position that they inevitably meet a too early and an unnatural death, one which is quite as much a death by violence as that by the sword or bullet; when it deprives thousands of the necessaries of life, places them under conditions in which they cannot live – forces them, through the strong arm of the law, to remain in such conditions until that death ensues which is the inevitable consequence – knows that these thousands of victims must perish, and yet permits these conditions to remain, its deed is murder just as surely as the deed of the single individual; disguised, malicious murder, murder against which none can defend himself, which does not seem what it is, because no man sees the murderer, because the death of the victim seems a natural one. …” *

* Engels, Conditions of the Working Class in England in 1844, Chap. V.

Under capitalism, tools, machines and the land confront the worker as an alien and hostile force. The supreme manifestation of this antagonism is the periodical crises which shake the exploiting system to its foundations and reveal to the ruling classes their inability to govern with the aid of the forces which they themselves called into being, forces which rage like blind elements over the whole of mankind, devastate flourishing countries, towns and villages and doom millions of people to degeneration.

Engels showed that the development of the proletariat, whose conditions of life impel it towards the social revolution, and the development of the productive forces, which have outgrown the framework of capitalist society, must inevitably burst this framework, must lead to the social revolution.

In this connection Marx and Engels advanced the “immediate ultimate aim” of overthrowing the power of the bourgeoisie and of establishing the dictatorship of the proletariat. This is the core of Marxism.

In the struggle for revolutionary Marxism, Engels with the utmost clarity worked out the problem of the interaction between economics and politics throughout the history of social development; and on this basis he worked out the problem of the nature of the state of the exploiting classes. In a brilliant sketch he also depicted the general contours of socialist construction.

Engels’ profound analysis embracing the whole of so-called “civilization”, i.e., of the history of the exploiting classes and their states, leads to the conclusion that the disappearance of classes and of the state is as necessary historically as have been their rise and development up till now. Engels wrote:

“We are now rapidly approaching the stage of development of production in which the existence of classes has not only ceased to be necessary, but has actually become a hindrance to production.” *

* Engels, Origin of the Family, Private Property and the State, Chapter IX.

We know what a furious howl, what frenzy and rage this proposition of Marxism that classes and the state must inevitably disappear called forth and still calls forth among all the paid advocates of the bourgeois system and bourgeois property, and how idiotically all the Bernsteins and Kautskys, who regard the slightly varnished and slightly reformed bourgeois state as the highest achievement of human progress, have failed to understand it.

In his struggle against the Social-Democratic opportunists and against the anarchists, Engels put in the forefront the question of the dictatorship of the proletariat and, in particular, the question of the radical difference between the exploiters’ state and the proletarian state. The revolutionary Marxian doctrine of the state and revolution and, in particular, Engels’ remarkable sketches on the question of proletarian democracy as opposed to bourgeois democracy, have been brilliantly developed in the works of Lenin and Stalin.

What irrefutable confirmation of the correctness of the Marxist-Leninist doctrine of the state as the organ of the exploiting classes for the purpose of keeping the exploited classes in subjection is obtained precisely at the present time, in the midst of the advance of reaction and fascism in the capitalist countries! How shamefully the lying tales of the Social-Democratic philistines about the state “expressing the common interests of the people”, conciliating the interests of antagonistic classes, and standing above those classes, have been scattered to the winds! And what confirmation is obtained today, particularly in fascist countries, of what Engels said about the state being the armed forces: the police, the army, the prisons and the courts. The fascist landknechts of finance capital, the Gestapo, Hitler’s and Goering’s defense corps, the fascist dungeons, the concentration camps and the scaffold – all these reveal the very nature of the exploiters’ state, which has thrown off the tinsel of bourgeois democracy, which is trampling upon the last remnants of the democratic rights and liberties won by the toilers by long years of sanguinary struggle. And in the face of these inexorable facts, what will those say today who, debasing and distorting Marxism, repudiated the path of the proletarian revolution, and, in conjunction with Noske and Severing, defended the bourgeois state against the attacks of the revolutionary masses?

Opposing the dictatorship of the proletariat to the dictatorship of the bourgeoisie, Marx and Engels fought all their lives for the creation of a party that could lead the masses to the seizure of power and the establishment of the proletarian dictatorship. After the Paris Commune all Engels’ utterances on the question of the immediate and urgent tasks of the proletariat in the socialist revolution were directed towards one point, viz., to utilize the experience of the Paris Commune, which was to lie at the basis of the program of the new mass parties of the proletariat. Not long before his death, on the twentieth anniversary of the Paris Commune, Engels wrote:

“Of late the Social-Democratic philistine has once more been filled with wholesome terror at the words dictatorship of the proletariat. Well and good, gentlemen, do you want to know what this dictatorship looks like? Look at the Paris Commune. That was the dictatorship of the proletariat.” *

* Engels’ “Introduction” to The Civil War in France, p. 19. International Publisher!, New York.

The Bolshevik Party alone, as far back as 1903, included the demand for the dictatorship of the proletariat in its program. After quoting what Marx and Engels had said on the experience of the Paris Commune, Lenin, in 1917, wrote:

“In revising the program of our Party the advice of Engels and Marx absolutely must be taken into consideration in order to come nearer to the truth, to re-establish Marxism, to purge it of distortions, to direct more correctly the struggle of the working class for its liberation.” *

* Lenin: State and Revolution, p. 55. International Publishers, New York.

The Bolsheviks alone, led by Lenin and Stalin, supplementing the rich experience of the Paris Commune with the experience of two Russian revolutions, put forward the creation of a state of the “Commune type” as the immediate aim of the proletarian revolution, and succeeded in leading vast masses of the proletariat and of the poorest peasants towards breaking up the bourgeois state and establishing the proletarian dictatorship in the form of Soviets.

Engels said that the class struggle of the proletariat would assume its widest dimensions when the proletariat captured power and, by means of its dictatorship, set to work radically to remold all productive relationships.

Today, on one-sixth of the globe, in irreconcilable revolutionary struggle, in the great laboratory of socialist labor and thought, under the leadership of Lenin and Stalin, creative Marxism has been day after day assuming its world historical dimensions. The victorious proletariat is making the epoch in which Engels said:

“The proletariat seizes the public power, and by means of this transforms the socialized means of production, slipping from the hands of the bourgeoisie, into public property. By this act, the proletariat frees the means of production from the character of capital they have thus far borne, and gives their socialized character complete freedom to work itself out. Socialized production upon a predetermined plan becomes henceforth possible.”*

* Engels, Socialism, Utopian and Scientific, pp. 74-75. International Publishers, New York.

The Bolsheviks have done that. They have expropriated the capitalists and landlords, removed the shackles of capital from material productive forces and from the greatest creative force in history, the proletariat, and in place of capitalist anarchy established the socialist plan.

Engels wrote:

“The appropriation by society of the means of production will put an end not only to the artificial restraints on production which exist today, but also to the positive waste and destruction of productive forces and products which is now the inevitable accompaniment of production and reaches its zenith in crises. Further, it sets free for society as a whole a mass of means of production and products by putting an end to the senseless luxury and extravagance of the present ruling class and its political representatives.”*

* Engels, Herr Eugen Duehring’s Revolution in Science (Anti-Duehring), p. 317. International Publishers, New York.

The Bolsheviks have done that. As a result of the socialist reconstruction of national economy, crises and unemployment have been abolished forever in the land of the victorious proletariat; the exploiting, parasitic classes have been liquidated and there is no place for the senseless waste of products. The socialist system has undivided sway in the country.

Engels spoke of a system of organization of production under which no one will be able to throw on the shoulders of others his share in productive labor and in which, on the other hand, productive labor, instead of being a means to the subjection of men, will become a means to their emancipation.*

* Ibid., pp. 328-29.

The Bolsheviks have done that. Instead of a curse, as it was under capitalism, labor in the land of socialism has become a matter of honor, glory and heroism; in the great school of socialist competition new forms of collective labor are arising.

The Bolsheviks are putting into practice the brilliant sketches of Marx and Engels on the necessity of abolishing the antithesis between town and country, on the planned distribution of the productive forces, of creating the prerequisites for the all-sided, mental and physical development of men and women. But the Party and non-Party Bolsheviks are putting these amazingly prophetic sketches into practice concretely, enriching them with the creative ideas of the most brilliant minds of modern times, of Lenin and Stalin – and they are filling them with the living experience of the revolutionary experience of the masses.

Engels said that those whose mission it will be to raze exploiting society to the ground and to erect classless, socialist society will possess exceptional power of theoretical foresight and iron will.

It was our Party, the Party of the Bolsheviks led by Lenin and Stalin, that Engels with his penetrating eye saw through the veil of the ensuing decades! He spoke of those millions who have built socialism in the land of the proletarian dictatorship. It signifies the entry in the historical arena of those who will achieve the great goal outlined by Marx and Engels all over the globe.

II

 

Engels as Leader of the Proletariat and Master of Proletarian Tactics

Engels was not only the great theoretician of the proletariat. Like Marx, he was primarily a revolutionary. As was the case with Marx, Engels’ real element was first of all the struggle – the persistent, consistent and passionate struggle for Communism.

The first half of the ‘forties. Young Engels spreads his wings. He abandons the Christian-Prussian philistine environment and beats a path for himself towards proletarian socialism. He meets Marx, with whom he concludes a fighting alliance – the great bond of union between the two geniuses of proletarian Communism. Together they organize and lead the Communist League; together they draw up the famous Manifesto of the Communist Party, the first program document of international Communism.

The revolution of 1848. Engels is one of the editors of the Neue Rheinische Zeitung in which, in conjunction with Marx, he supports the extreme Left wing of Democracy, ruthlessly exposing its vacillations, and championing the special interests of the proletariat in the bourgeois revolution.

The ‘sixties. The first international proletarian party – the First International – takes shape, and in its work Engels, in conjunction with Marx, takes a most active part. In the First International the doctrine of Marx and Engels secures decisive victory over all its opponents.

The Paris Commune ushers in a new epoch in the history of mankind. New tasks arise; the transition to the creation in separate countries of mass proletarian parties, on the development of which Engels exercises decisive influence.

As far back as 1846, Engels, then only twenty-six years of age, formulated the tasks of the Communists with astonishing distinctness:

“(1) To achieve the interests of the proletariat in opposition to those of the bourgeoisie; (2) To do this through the abolition of private property and its replacement by community of goods; (3) To recognize no means of carrying out these objects other than a democratic revolution by force.” *

* The Correspondence of Karl Marx and Friedrich Engels, p. 2. International Publishers, New York.

Many years later Engels said:

“We want the destruction of classes. What are the means of securing this? The political domination of the proletariat…. But the highest act of politics is revolution. Those who recognize this must strive towards such means and political actions as will prepare the revolution, such as educate the workers for revolution, and without which the workers will always be tricked by the Favres* and Pyats** the day after the battle. The policy which should be followed is a workers’ policy. A party must be formed not as an appendage to some bourgeois parties, but as an independent party with its own aim, its own policy.” ***

* Jules Favre, French bourgeois republican lawyer, became a minister after September 4, 1870; Thiers’ right hand in suppressing the Paris Commune.
** Felix Pyat, French petty-bourgeois radical.
*** From Engels’ speech at the London Conference of the First International. See The Communist International, No. 21, Nov., 1934, p. 812.

And it was to these aims that Engels devoted his half century of struggle.

Engels’ distinguishing traits as a politician of the working class were distinctly formulated by Lenin as follows:

“… A most profound understanding of the fundamental revolutionary aims of the proletariat, and an unusually flexible definition of a given problem of tactics, from the point of view of these revolutionary aims, and without the slightest concession to opportunism and revolutionary phraseology.” *

* Lenin, Marx, Engels, Marxism, pp. 44-45. International Publishers, New York.

I now want to deal in detail with Engels as the master of proletarian tactics. Our Parties, the leaders of our Sections, can learn something from the brilliant examples of the art of tactics given by the great proletarian captain.

Of the rich treasury of tactical propositions which Engels worked out and applied in the course of his practical activities I will deal with only a few which directly concern the central task, of the Seventh Congress, viz., the task of preparing and organizing the working class and all the toilers for the decisive battles. There were not a few people in Engels’ time, and there are not a few today, who conceive of the proletarian revolution not dialectically, but mechanically. They argue that the class conscious, consistent, “pure” revolutionaries were in one camp, while the other camp was one reactionary mass: that there can be no changes in the relations of class forces, for all classes have once and for all adopted their prescribed positions in the revolutionary scheme; there are no vacillating intermediate strata, for all have been entered beforehand in the category of reaction; there is no vanguard and reserves, for all represent one revolutionary mass; there are no masses who are only just approaching revolution, for all have been, beforehand, included in the camp of the revolutionary vanguard; there are no stages in the development of the revolutionary struggle, for in some enigmatic way, the masses have been transferred to the supreme class “of the last and decisive battle”; the revolutionary party need not carry on everyday work to enlighten and prepare the masses for the struggle, for the masses are only waiting for the signal to rush into battle under the leadership of the arch-revolutionary leaders; organizational preparation for the purpose of accelerating the growth of the movement is superfluous, they say, because the spontaneity of the movement itself is working in our favor. This is the type of people Engels had in mind when he ridiculed the following scheme of development of the revolution:

“All the official parties united in one lump here, all the Socialists in one column there – great decisive battle. Victory all along the line at one blow. In real life things do not happen so simply. In real life… the revolution begins the other way round, by the great majority of the people and also of the official parties massing themselves together against the government, which is thereby isolated, and overthrowing it; and it is only after those of the official parties whose existence is still possible have mutually and successfully accomplished one another’s destruction that the great division takes place and with it the prospect of our rule. If… we wanted to start straight off with the final act of the revolution, we should be in a miserably bad way.” *

* The Correspondence of Karl Marx and Friedrich Engels, p. 401. International Publishers, New York.

This brilliant proposition of Engels on the progress and development of the revolution was still more strikingly and fully developed by Lenin more than thirty years later. He wrote:

“To imagine that social revolution is conceivable without revolts by small nations in the colonies and in Europe, without the revolutionary outbursts of a section of the petty bourgeoisie with all its prejudices, without the movement of non-class-conscious proletarian and semi-proletarian masses against the oppression of the landlords, the church, the monarchy, the foreign nations, etc. – to imagine that means repudiating social revolution. Only those who imagine that in one place an army will line up and say, ‘We are for socialism’, and in another place another army will say, ‘We are for imperialism’, and that this will be the social revolution…

“Whoever expects a ‘pure’ social revolution will never live to see it. Such a person pays lip service to revolution without understanding what revolution is.” *

* Lenin, Selected Works, Vol. V, p. 303. International Publishers, New York.

Further on he says:

“The socialist revolution in Europe cannot be anything else than an outburst of mass struggle on the part of all and sundry of the oppressed and discontented elements. Sections of the petty bourgeoisie and of the backward workers will inevitably participate in it – without such participation, mass struggle is impossible, without it no revolution is possible – and just as inevitably will they bring into the movement their prejudices, their reactionary fantasies, their weaknesses and errors. But objectively they will attack capital, and the class-conscious vanguard of the revolution, the advanced proletariat, expressing this objective truth of a heterogeneous and discordant, motley and outwardly incohesive, mass struggle, will be able to unite and direct it, to capture power, to seize the banks, to expropriate the trusts (hated by all, though for different reasons) and introduce other dictatorial measures which in their totality will amount to the overthrow of the bourgeoisie and the victory of socialism, which, however, will by no means immediately ‘purge’ itself of petty bourgeois slag.” *

* Ibid., p. 304.

These remarkably profound words of Engels and Lenin contain the fundamental elements of the reply to the question of how we today can successfully fight against the offensive of capital, of fascism and the menace of war. They indicate the necessity of the proletarian party having a correct policy towards the masses of its own class and towards its allies and they indicate the task of creating a broad people’s front of struggle, the need for and the ability to take advantage of international antagonisms for the purpose of strengthening the position of the proletariat. All our experience have more than once confirmed the fact that the party which starts out with vulgarized and naive conceptions of revolution is incapable of playing the part of organizer and leader of the revolution. There is nothing more dangerous for a live and fighting party than a readymade, invented and lifeless formula, for it conceals all the living and motley variety of the conditions and forms of struggle.

It is wrong to think that the revolution will develop along a straight line like the flight of an arrow, that no hitches or interruptions, and retreats for the purpose of leaping further forward will occur in the maturing revolutionary process. It is wrong to think that the tactics of the revolutionary party should be based not on the relation of class forces that exist, but on relations as we would like them to be. It is wrong to think that in the process of preparing for revolution as well as in the process of its development it is sufficient for the proletarian party to rely entirely upon the forces of the vanguard and that there is no need to rely on the majority of the working class. It is wrong to think that by ignoring other class forces and by refraining from trying to win over the vacillating classes to the side of the revolution, at least temporarily, the proletarian party can create the clear situation of “class against class”. It is wrong to think that it is possible to prepare for the revolution and to bring it about without taking advantage of the antagonisms within the camp of the enemy, without temporary, partial compromises with other classes and groups which are becoming revolutionary, and their political organizations.

In 1889, in a letter to the Danish Socialist Trier, Engels recommends that other parties be utilized in the interests of the working class, that,

“…Other parties and measures should be temporarily supported which are either of direct advantage to the proletariat, or which represent a step forward in the direction of economic development or of political liberty….”

“But,” Engels adds, “I am in favor of this only if the advantage accruing directly for us, or for the historical development of the country along the path of economic and political revolution, is unquestionable and is worth-while striving after. Another obligatory condition is that the proletarian class character of the Party shall not thereby be brought into question. That for me is the absolute limit.” * (My italics – D.Z.M.)

* Bolshevik, No. 21, 1932, p. 84.

Strengthening the class character of the party, raising the class consciousness of the proletariat, raising its fighting capacity, strengthening its positions, weakening the position of the class enemy – such are the criteria which Engels regarded as essential in deciding the question of whether this or that compromise was permissible.

These tactics are profoundly hostile to the policy of class cooperation between the proletariat and the bourgeoisie pursued by international Social-Democracy, for that policy robbed the party of its class character, it strengthened the position of the bourgeoisie and weakened and demoralized the proletariat. These revolutionary tactics have nothing in common with the policy of the “lesser evil”, with voting for Hindenburg, with forming a bloc with Bruening; for, in pursuing the policy of the “lesser evil”, Social-Democracy surrendered to the bourgeoisie one proletarian position after the other, it paved the way for fascism, and prepared for the defeat of the proletariat.

Thirty years later, Lenin enlarged on this idea of Engels on the basis of the experience of the three Russian revolutions, and taught the young Communist Parties flexible and mobile tactics that would enable them to overcome their “Left-wing” sickness and to take up the struggle for the overthrow of the bourgeoisie in a really Bolshevik manner. He wrote:

“To carry on a war for the overthrow of the international bourgeoisie, which is a hundred times more difficult, prolonged and complicated than the most stubborn of ordinary wars between states, and to refuse beforehand to maneuver, to utilize the conflict of interests (even though temporary) among one’s enemies, to refuse to temporize and compromise with possible (even though transient, unstable, vacillating and conditional) allies – is not this ridiculous in the extreme?… It is possible to conquer this most powerful enemy only by exerting our efforts to the utmost and by necessarily, thoroughly, carefully, attentively and skilfully taking advantage of every ‘fissure’, however small, in the ranks of our enemies, of every antagonism of interests among the bourgeoisie of the various countries, among the various groups or types of bourgeoisie in the various countries; by taking advantage of every opportunity, however small, of gaining an ally among the masses, even though this ally be temporary, vacillating, unstable, unreliable and conditional. Those who do not understand this do not understand even a grain of Marxism and of scientific modern socialism in general.” *

* Lenin, “Left-Wing” Communism, an Infantile Disorder, p 52. International Publishers, New York.

Comrades, if you ponder over these words of Engels and Lenin as applied to our epoch, to the policy which our Congress is now indicating for the ensuing period, you will understand that these tactics, tested by the experience of the whole of the world labor movement during many decades, now create for the Communist International, for all its Sections, great opportunities for emerging out of the agitational-propaganda period of our development and for becoming mighty factors in the whole of contemporary political life in the various countries and throughout the world. But it is precisely because we are now entering the broad road of great mass policy, because we are preparing to count, not in hundreds of thousands, but in millions, because we are beginning to bring under our influence those strata which only yesterday were in the ranks of Social-Democracy, or else were outside of politics altogether, because of this, the Sections of the Comintern must be particularly alert to possible Right and opportunist distortions of our mass policy, distortions which will retard the growth of our influence among the masses and the growth of the fighting capacity of the proletariat, and thereby retard the maturing of the conditions for the proletarian revolution. And here we must once again turn to our teacher Engels and recall the struggle he waged against opportunism, the ruthless, untameable struggle to which he devoted half a century of his life as a political fighter.

Engels saw right through the petty bourgeois who in scores of different disguises tried to entrench himself in the labor movement, weakening it and disorganizing it. With unerring aim and inimitable sarcasm, Marx and Engels tore the mask from the face of this philistine; they exposed the philistine grimaces beneath the mask of free and easy geniality. This philistine has the right to commit any despicable act because he considers himself to be “honestly” despicable. Engels wrote:

“Even stupidity becomes a virtue because it is the irrefutable evidence of firmness of conviction. Every hidden motive is supported by the conviction of intrinsic honesty, and the more determinedly he plots some kind of deception or petty meanness, the more simple and frank does he appear to be.”

This philistine is a

“…drainpipe in which all the contradictions of philosophy, democracy and every description of phrasemongering are mixed up in a monstrous manner.” *

* Marx and Engels Archive, Book V, p. 329.

While upholding revolutionary Marxism, Engels fiercely attacked German reformists, the French Possibilists, the British Fabians and the Ultra-Lefts. At the same time, with exceptional firmness and patience, he criticized and corrected the opportunist mistakes of the leaders of the proletarian parties such as Wilhelm Liebknecht and Bebel, Lafargue and Guesde.

This tireless struggle against opportunism, and particularly against conciliation with opportunism, caused some of the leaders whom he attacked to dub Engels “the rudest man in Europe”. All of us should learn from Engels how to be passionately “rude” in the interests of the party, in the interests of the revolution.

No one was so eager to unite the vanguard of the working class in the ranks of a united workers’ party as Engels was. He wanted to do that as much as we want to do it today. But he knew and saw that unity not based on principles would weaken the working class. Of what use would a mass party be for the proletariat if it served as a lasso, dragging it into cooperation with the bourgeoisie? In 1882 he welcomed the split in the workers’ party in France from Mallone and Bruse who had abandoned the class struggle, had sacrificed the proletarian class character of the movement and had made a rupture inevitable.

“All the better,” he said. “Unity is an excellent thing as long as it is possible, but there are things that are more important than unity.”

I think it is necessary to recall these words of Engels precisely at the present time when here at this Congress we are holding aloft the banner of the political unity of the international working class.

Through the medium of Comrade Dimitroff’s report, the Congress has very strongly emphasized its will to fight for a united workers’ party in every country, for a united workers’ world party. But such a party can be created only on the basis of unity of principles and not on the basis of a putridbloc between petty-bourgeois and proletarian elements after the model of the Second International. We would remind the thousands, tens and hundreds of thousands of Social-Democratic workers who regard themselves as followers and disciples of Marx and Engels that we and they would be committing a crime against our class if we re-created that fictitious “unity” which led to the catastrophe of August 4, 1914, to the bloc between a section of the working class and the bourgeoisie, and which, in the last analysis, facilitated the victory of fascism. The working class does not need unity of this kind! We want the unity for which our teacher Friedrich Engels fought all his life; we shall exert every effort to achieve this unity, and we shall achieve it.

But this unity can be achieved only by a party which by its increasing activities wins the confidence of the masses, by a party which overcomes schematism and vulgarization in its approach to the mass movement. It is for such a party that Engels fought. He ruthlessly scourged passivity and inactivity as among the most pernicious forms of opportunism. In his correspondence with the workers’ leaders he tirelessly repeated: the Party must act under all circumstances. It must participate in the whole of the political life of the country and take advantage of every event in home and foreign politics for active intervention; it must be with the masses everywhere and always, at the opportune moment it must issue real fighting slogans that shall emanate from the masses themselves, and it must issue new ones as the movement grows. This is the main tactical rule for the proletarian party upon which Engels insisted.

The party which exists in the close and narrow circle of its immediate supporters, which stands outside of the things with which the people are concerned, which cannot clutch at the things that are exciting the masses at the given moment, which is unable to generalize the complaints and desires of the people in distinct, intelligible slogans, such a party cannot take the lead of mass movements.

Engels was particularly sharp in his attacks upon those who failed to be on the spot at decisive moments of the mass struggle. In this connection Engels quite openly said that the party which misses such a decisivemoment, which fails to intervene, will be dead and buried for some time.

Often, in practice, passivity and inactivity, masked by “Left” phrases, is concealed by playing at conspiracies, playing at exclusive underground organizations and degenerates into Carbonarism, which is alien to the spirit of the workers’ party. On the other hand, parliamentary cretinism, adaptation to bourgeoislegality at all costs, denying the significance of illegal forms of organization, and fear of violence also paralyze the fighting capacity of the working class.

Engels fought against the manifestations of both forms of passivity. He taught the proletarian parties to take every possible advantage of bourgeois legality for the purpose of gathering the forces of the working class, of preparing them for the struggle for the dictatorship of the proletariat and thereby transforming bourgeois legality into a weapon of the struggle against the bourgeoisie. He exposed the Bakunin-Blanquist conspiracy tactics, which the international police utilized against the workers’ organizations, and urged the need for particular vigilance in regard to spies and provocateurs who penetrated the workers’ organizations. At the same time he spared no blows against those Social-Democrats who, toadying to the government, declared that the workers’ party was not a party of revolutionary violence.

“To attack violence,” he wrote in indignation, “as something which is impermissible in itself, when we know that, in the final analysis, we shall achieve nothing without violence …” *

* Marx and Engels Archive, Vol. I (VI), p. 78.

Engels insisted that proletarian revolutionaries must be able to utilize all forms of struggle against the class enemy. Under the leadership of Lenin and Stalin the Bolshevik Party applied these tenets of Engels in the course of twenty-five years of enormous experience in combining legal with illegal forms of work which, as is known, lay at the basis of the organizational decisions of the Second Congress of the Communist International.

Have our Sections made the utmost use of these tenets? No, they have not. Many comrades are convinced that under the fascist terror there is no room for “legal” footholds, for open manifestations of the labor movement, for developing a broad mass struggle. But fascism is compelled to create a mass basis, to create its mass organizations, to resort to social demagogy. Hence, it is the duty of the Communists to penetrate the mass fascist organizations, to turn the fascist social demagogy against the fascist dictatorship and thus to undermine the mass basis of fascism. It will be impossible to force our way to the masses under these conditions unless we carry on daily and systematic work in the fascist mass organizations and unless we combine legal with illegal methods of work.

At the same time it is wrong to think that we do not need illegal organizations in those countries where the labor movement is legal. Victimization by employers in all countries compels us to establish secret nuclei in the factories illegally. The growth of the menace of fascism compels the “legal” Communist Parties to adopt measures in preparation for the possible transition to an illegal position in order to avoid repeating the mistake committed by the Italian and German Communist Parties. We must remember that the united front movement spontaneously “legalizes” the most hunted and persecuted Communist Parties, that the mass struggle brings the most deeply underground organizations to the surface.

One of the varieties of the schematism and vulgarization against which Engels fought is the mechanical application of fundamental, tactical propositions without taking into consideration the specific conditions prevailing in each separate country.

We are the world party of the proletariat, the party built on the basis of genuine political and organizational unity, a party which sums up and generalizes the whole experience of the world labor movement, a party which pursues genuinely international tactics based on the unity of interests of the international proletariat. But these international tactics do not preclude variations created by the specific features of development of individual countries. The internationalization of the experience of the world labor movement does not mean making stereotypes equally applicable to the labor movement in all countries. Those who think that it is sufficient to have a few ready-made formulae in one’s pocket to apply to the whole world labor movement, do not internationalize the labor movement, but freeze it and hinder its development.

Engels was a classic example of the genuine international leader who knew to perfection the secret of properly combining the international character of our Communist movement with the ability to take into account its specific national features. He was closely connected with the German labor movement; he was excellently informed of all the details of the French labor movement; from 1844 onwards he took a most active part in the struggles of the British proletariat; he made a deep study of the American labor movement (he himself traveled across the ocean); he was exceptionally well informed about the conditions and progress of the proletarian struggle in Italy and in the Pyrenees; he was greatly interested in the revolutionary movement in Russia, the West Slav and the South Slav countries.

It is precisely this profound knowledge of the conditions in separate countries that enabled Engels properly to lead the workers’ parties in these countries, and to be a genuine leader and organizer of the proletarian International.

“The emancipation of the Italian peasant,” he wrote to Bovio, “will not take place in the form in which the emancipation of the English factory workers will be brought about; but the more both utilize the forms corresponding to their respective conditions, the more will things correspond to the substance of the matter.”

Such are Engels’ main tactical tenets in the light of our great epoch, in the light of the tasks that confront our Congress.

Engels taught us, in defining our tactics, to approach the vital revolutionary processes in the lives of the peoples not with cut-and-dried schemes, not with ready-made scales, but on the basis of a profound study of the disposition of class forces in every single country at every given moment. He taught us to take into consideration the position of each separate class, of each of its groups, to study the sum total of all class antagonisms and methods by which the proletariat may take advantage of them, and unfailingly to bear in mind the international situation as a whole.

Engels taught us to be a fighting, active party, both when the tide of the labor movement is in flood and when it is temporarily at ebb, and to be able to find that special question which deeply concerns the masses and enables the Party to extend and strengthen its contacts with the working class and all other toilers. He taught us to join a movement not only after it has started, but to prepare it, to organize it and, by winning the confidence of the masses, to lead it. He urged us to respond to every event that excites the masses, to develop great movements into decisive battles and thereby transform the Party into a force that will gain prestige among all the toilers and increase their confidence in their own strength.

Engels taught us not to become conceited at the moment of victory and not to lose heart at the moment of temporary defeat. He taught us not to be afraid to start from the beginning if we are defeated, but to start with the firm conviction that we must achieve victory at the second attempt.

Engels taught us to pursue a mass policy that corresponds to the vital interests of the broadest masses of the toilers, that helps to rally the masses of the peasants and the toilers in the towns around the proletariat. In the present situation this means, first of all, the establishment of a people’s front against fascism in capitalist countries, and a front of the peoples against war in the international arena.

Engels taught us to make a sober estimate of the situation, not to rush ahead before the masses have been drawn into the movement, but at the same time not to drag at the tail of these masses; not to adapt our tactics to the most backward sections of them; to be able by means of determined and rapid action to sweep these masses forward, consolidate every success of the movement and take that success as the starting point for fresh successes.

Engels taught us to fight for every inch of ground won by the working class, to take advantage of every antagonism in the camp of the enemy, never to sacrifice the class character of the Party and the aim of strengthening the proletariat, to be in all the organizations in which the masses of the workers are to be found, and to utilize illegal and legal forms of struggle, which, in the present conditions, means strengthening the illegal organizations by extending their legal influence among the masses and extending this influence by strengthening the illegal organizations.

We are living and fighting in an incomparably more complicated situation than that which existed in Engels’ time. But Engels’ rich tactical legacy still retains its significance in this new situation. The Communists will utilize this legacy for a long time to come yet, and they will apply the tenets of Engels in a Bolshevik manner.

Does this mean that these tenets are sufficient for the purpose of determining our tactics? Of course not. Owing to historical conditions, Engels, like Marx, was unable, and did not create a complete science of the strategy and tactics of the revolutionary proletariat. But at the basis of this science created by the genius of Lenin and Stalin lie the remarkable ideas of strategy and tactics which the great founders of Communism had developed and applied to the utmost extent they were able to.

III

We Continue the Work of Engels

We communists are the continuers of Engels’ work.

The great and invincible strength of the revolutionary doctrines he and Marx created lies in that it lives and develops together with the fighting proletariat, that it is becoming enriched with its new experiences and sharpened in the struggle against its enemies.

The leaders of the Second International proved incapable of developing Marxism further. They did not accept it as the doctrine of Marx and Engels, as a guide to the revolutionary action of the proletariat, as the doctrine of the necessity of preparing the masses for the violent overthrow of the rule of the bourgeoisie, for the abolition of classes in general. Some of the leaders of the Second International revised Marxism, “supplemented” it with the assertion that the development of capitalism is not accompanied by the intensification of class antagonisms, but, on the contrary, by their diminution. Others, while admitting the correctness of the fundamental propositions of Marxism in words, transformed these propositions into a dogma which justified conciliation with the realities of capitalism, justified support of reformist practices. These people called themselves Marxists; but they mutilated Marxism, vulgarized and extracted from it its revolutionary substance. In this way the theory and practice of the Second International more and more reproduced all the vulgar, petty-bourgeois wisdom against which Engels fought all his life. The leaders and ideologists of the Second International are not the continuers of the work of Engels, but of the work of his enemies.

Engels departed from us in the middle of the ‘nineties. This was exactly the time when Lenin – whose name has become a guiding star for the whole of the international proletariat – started his revolutionary work.

Marx and Engels lived, worked and fought in the pre-monopolist epoch of capitalism, when, in the main, the development of bourgeois society was proceeding in an ascending line, in the epoch of national wars and the consummation of the bourgeois revolutions in Western Europe, in the epoch when England still possessed world commercial and industrial supremacy and when the German proletariat was still the vanguard of the world proletariat, in the epoch when the labor movement was only just taking shape as an independent political movement and when proletarian parties were only just being formed. That epoch provided Marx and Engels with all the necessary elements with which to arm the proletariat with the mighty weapon of revolutionary theory.

But Marx and Engels never claimed to forecast the exact route of the proletarian revolution, they never prescribed precise tactical rules for it, or claimed to have answers for problems that were insoluble in the conditions of their epoch.

Engels, who had devoted brilliant pages to the development of socialism from utopia to a science, more than once poured ridicule on those who, departing from the soil of science, tried to say wise things about the “architectonics of future society”. More than once he wrote that he calmly left this to the “people of future society who at all events will not be more stupid than we are”.

Concerning Marx’s critique of capitalism Engels wrote that “the results of this critique also contain the embryo of so-called solutions, insofar as the latter are at all possible at the present time”. This, of course, also applies entirely to Engels’ own works. And these brilliant ideas, sketches, embryo, which the pedants and philistines of the Second International overlooked in their blindness, were further developed and transformed into a harmonious doctrine by the great Bolsheviks Lenin and Stalin.

Lenin did not regard Marxism is a dogma, but as a guide to revolutionary action. As far back as the end of the last century, in connection with the fight around the question of the Party program, Lenin wrote:

“We do not in the least regard Marxist theory as something complete and inviolable, on the contrary, we are convinced that it only laid the corner-stone of the science which the Socialists must advance further in all directions if they do not want to lag behind life.”

The gigantic growth of capitalist monopolies was already foretold in Capital. In Engels’ last works (for example in the sketch of his work on the Stock Exchange), attempts are already made to characterize a number of new phenomena in the economics of capitalism. But Engels died before he was able to bring out the specific features of the imperialist stage of capitalism that was already being ushered in in the ‘nineties.

Monopoly, decaying capitalism; the unprecedented intensification of all capitalist contradictions; the general crisis of capitalism, the starting point of which was the World War in 1914-18, and the victory of the October Revolution, which ushered in a new epoch in the history of mankind; socialist construction and the victory of socialism in the U.S.S.R. – these are the new factors which Engels was not and could not have been aware of, these are the new factors which the Marxist had to generalize theoretically and thereby arm the revolutionary proletariat for its future struggle.

In his interview with the American workers’ delegation, Stalin, in a few pages, gave a condensed characterization of the contribution which Lenin made to the treasury of Marxism. These few condensed pages ought to be read and re-read, they are equivalent to many volumes. In them Stalin gives a resume of the content of the Leninist stage in the development of Marxism: the analysis of imperialism as the last phase of capitalism; the further development of the core of Marxism, i.e., the doctrine of the proletarian dictatorship; the development of the question of the forms and methods of socialist construction in the period of the proletarian dictatorship; the creation of a harmonious system of the hegemony of the proletariat; the development of the national-colonial question as the question of the reserves of the proletarian revolution; the creation of the doctrine of the Party.

To Lenin belongs the merit of having defined the position of the Communists in imperialist wars, a position which he recorded in the slogan – transform the imperialist war into civil war. And this must be all the more emphasized for the reason that attempts have been made to make it appear that the founder of this slogan was Engels. This is not true, comrades, Engels rendered too many services to the world labor movement to make it necessary to ascribe to him what he never said. Engels did not live in the epoch of imperialism; he had to lay down the positions of international socialism principally in regard to national wars. Had the Bolsheviks approached the works of Engels of the ‘nineties in a dogmatic manner they would not have been able to develop the Marxian position on the question of imperialist wars in the way Lenin did. Lenin, and Lenin alone, gave what was the new in principle and the only correct line on the question of the character of imperialist war, aswell as on the question of the position the proletariat should adopt towards it. And it is precisely because we honor the memory of our great teacher Engels that we are opposed to his being transformed into an icon, that we are opposed to hushing up or glossing over, historical truth.

Lenin’s work, which raised Marxism to a new stage, is being continued in all directions by Stalin. In the works, speeches and all the activities of Stalin and of the international Bolshevik Party which he leads, the Marxist-Leninist theory of which Engels was one of the founders, lives, grows and is enriched.

Stalin developed Marxism in one of the fundamental questions of our epoch, in the question of building socialism in a single country. The Bolsheviks did not clutch atEngels’ old formulae which were suitable for a different stage, left behind long ago. Under the leadership of Stalin they utterly routed the Trotskyists and Zinovievists who tried to utilize these formulae against the proletarian revolution. Lenin showed that with uneven, spasmodic, capitalist development under the conditions of imperialism, the victory of socialism was possible in a single country. Stalin developed and upheld this theory and put it into practice.

At the Fifteenth Conference of the C.P.S.U. Stalin said:

“What Engels in the ‘forties of the last century, under the conditions of pre-monopolist capitalism, regarded as impracticable and impossible in a single country, became practicable and possible in our country under the conditions of imperialism. Of course, had Engels been alive today he would not have clung to the old formula. On the contrary, he would have greeted our revolution wholeheartedly and would have said: ‘To hell with the old formula, long live the victorious revolution in the U.S.S.R.'”

Neither in the Critique of the Gotha Program, nor in the works of Engels, nor in Lenin’s State and Revolution were the concrete problems of the first phase of Communism raised which Stalin raised and solved with the greatest boldness and profundity.

We began to build socialism in a poverty-stricken and ruined country which had inherited from the bourgeoisie a low technical economic level, in a country surrounded by capitalist states. Moreover, we began to build socialism for the first time in the history of mankind.

And Stalin, developing further the doctrine of Marx, Engels and Lenin, creatively put it into living practice; for the first time he concretely drew up a single and profoundly-thought-out plan for the socialist offensive in our country; he worked out the problem of socialist industrialization as a condition of victory for socialism in the U.S.S.R.; he worked out the problem of collective farming as the road to the socialist reformation of the peasantry under proletarian leadership; he worked out the problem of the stages and methods of abolishing the capitalist elements (from the policy of restricting these elements to the policy of liquidating the kulaks as a class); he worked out the problem of the organization of labor under the conditions of socialist construction and in the struggle against petty-bourgeois equalitarianism; he worked out the problem of the conditions for and ways of abolishing the survivals of capitalism in the minds of men and of building a new, socialist culture. Stalin showed that building socialism meant, first of all, strengthening the proletarian dictatorship; and that strengthening the proletarian dictatorship, and successes in socialist construction, cause proletarian democracy to come out in full bloom. And the Bolsheviks, led by Stalin, transformed all these theoretical propositions of Stalin into flesh and blood.

Such works and speeches of Stalin as his reports at Party Congresses, as his speech at the Conference of Marxian Agrarians, as his famous Six Conditions, as his new collective farm rules, as the changes in the Soviet Constitution he has proposed, as well as his speech on the new people who have mastered technique – in short, every pronouncement Stalin makes is not only a landmark on the road of socialist construction in the U.S.S.R., it is also a landmark in the enrichment and deepening of Marxist-Leninist theory. These works are the material from which the advanced workers of all countries have been and are acquiring their knowledge.

Stalin gives an example of the policy of the proletarian state which is building classless socialist society under the conditions of capitalist encirclement. Stalin works out the principles of the policy of the world proletarian party – the Communist International – amidst the conditions of the general crisis of capitalism and the struggle between two systems, i.e., capitalism and socialism. Basing himself on the experience of the Chinese Revolution, Stalin worked out the problem of the concrete paths by which the national revolutionary movements grow into the Soviet revolution.Stalin raised the doctrine of Marx, Engels, Lenin concerning the transition period from capitalism to socialism to a new stage.

Lenin and Stalin did not confine themselves to certain sketches of Marx and Engels on problems of strategy and tactics. In his Foundations of Leninism, the handbook of proletarian revolutionaries all over the world, Stalin wrote that only:

“…In the period of direct action by the proletariat, in the period of the proletarian revolution, when the question of the overthrow of the bourgeoisie became a question of immediate practice, when the question of the reserves of the proletariat (strategy), became one of the most burning questions, when all forms of struggle and of organization, parliamentary end extra-parliamentary (tactics), assumed definite shape – only in this period could a complete strategy and detailed tactics for the struggle of the proletariat be elaborated.” *

* Stalin, Leninism, Vol. I, p. 73, International Publishers, New York.

The merit of Lenin and Stalin lies in that they did not confine themselves to restoring certain tactical propositions of Marx and Engels, but developed them further and created the strategy and tactics of Leninism – the complete science of the leadership of the revolutionary struggle of the proletariat.


Forty years have passed since the death of Friedrich Engels. What an enormously long path the world labor movement, the whole of mankind, has traversed during these years. In place of the old tsarist despotism we have the great country that is building socialism. The old Chinese Wall is collapsing; the four hundred million population of China has been set in motion. The banner of the Soviet revolution is flying over six provinces of China inhabited by a hundred million people. Influenced by the successes of socialism in the U.S.S.R., a powerful movement towards socialism is going on among the toilers all over the capitalist world. The bourgeoisie of the capitalist countries are devastating whole countries and cities, are re-opening the medieval dungeons for the enslaved peoples, are sowing a storm of hatred and anger among all the oppressed. The First International of Marx and Engels no longer exists and the Second International is crumbling like a piece of rotten fabric. But the men of labor are more and more closely rallying around the Third, Communist, International, the International of Marx, Engels, Lenin, and Stalin, the International of victorious socialism in the U.S.S.R., the International of the world proletarian revolution.

“I think,” wrote Engels in 1874, “that the next International – after Marx’s writings have had some years of influence – will be directly Communist and will openly proclaim our principles.”* (My italics – D.Z.M.)

* The Correspondence of Karl Marx and Friedrich Engels, p. 330, International Publishers, New York.

This Communist International is represented in this hall. It embraces over three score of countries, it has millions of adherents who are under the influence of the Communist Parties among all nations and races in all parts of the globe. The doctrine of Marx and Engels rules unchallenged over one-sixth of the globe, backed by a powerful state, by a socialist economy with wealth amounting to billions; it is backed by a country with a hundred and seventy million population. In all countries this doctrine is breaking the chains of the slaves in order that it may embrace the whole world.

Armed with this doctrine, the Communists, in spite of terror, torture and persecution, are organizing and rallying the proletarians, the toilers, the colonial slaves for the struggle, and are leading them to victory. The Communist International has become mankind’s guiding star and anchor of salvation from poverty, fascism and war.

Long live the Communist International, the great invincible Party of Marx, Engels, Lenin and Stalin!

Anasintaxi (KKE 1918-55): On the Events in Nandigram

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* This article, translated in Greek, published in Anasintaxi issue 263

The 14 known dead, the wounded, the raped and the unknown number missing in Nandigram, the victims gunned down by the joint police and the CPI M cadre ‘action’ on the 14th of March, visibly signify the pain of the marginalised sharecropper suffering from capital and state terror. Singur and Nandigram share their grief with the people of Kashipur and Kalinganagar in Orissa, the farmers who have committed suicide in their tens of thousands, the victims of Salwa Judum in Chhattisgarh, the dispossessed of the SEZs being instituted across the country, regardless of the political persuasions of the state governments. In these we see the resistance of the tribal and the peasant to the policies of an imperialist-sponsored neo-liberal global economic order, which is being prompted by the IMF and the World Bank and is being supported by the ruling amalgam of the big bourgeoisie and landlords and their political parties. Something like a united front has been established from the RSS to the CPI M which avers that ‘there is no alternative’ to the path of neo-liberal globalisation. Under the shiny packaging lies the reality that the poor peasant and the tribal are being divested of their means of production by non-economic coercion so that Indian and foreign capital can flourish. It is the process which Marx termed the primitive accumulation of capital. The Indian state itself facilitates this process by purchasing land for Indian and foreign capital at rates far below the market value and so subsidising the rich at the expense of the poor peasant and the tribal. This much is common across the state boundaries of India in Gujarat, Madhya Pradesh, Andhra Pradesh.

West Bengal, in Singur and Nandigram, is witnessing a crisis resulting from a peculiar path of development. The Indian communist movement from its genesis, as elsewhere, advanced the proposition that the transfer of the land to the tiller creates an internal market which can facilitate the industrialisation of the country on the basis of a democratic path of development in the interests of the working people. The domination of reformism from the nineteen-fifties ended this project. It was the peasantry of Naxalbari and the communist revolutionaries in the nineteen-sixties who once again posed the question of agrarian revolution in India. In reaction to this the reformist democratic left front in West Bengal carried out a land reform in the nineteen-seventies which ameliorated the position of the sharecroppers while retaining intact the landlord structures. This was the basis of the three decade longevity of the political rule of the reformist left in West Bengal. The modification of the sharecropping system, although it led to a regeneration of Bengal agricultural production, never led to the abolition of landlordism as such nor the transfer of land to the tiller, no more than it developed a system of cooperatives of the sharecroppers which would have been consistent with the reform of the capitalist system in agriculture. Similarly, no perspectives were elaborated for the industrial development of the state based on the internal generation of financial resources through public institutions. The overall failure to evolve a democratic path of economic development, despite the marked productive advances in the agrarian sector, in the decades of the chief ministership of Jyoti Basu in West Bengal could only lead to the cul-de-sac of economic stagnation. Under the current chief ministership of Buddhadeb Bhattacharya the left front administration has sought to break out of this stasis and opted for a fully-fledged neo-liberal programme of economic development in cooperation with big Indian and foreign capital through the establishment of Special Economic Zones. A large section of the working people in agriculture who are already bereft of sustainable economic livelihood face a future where they will be stripped of their land in return for paltry compensation while those sharecroppers who do not have legal titles will have to be satisfied with no compensation at all. Many of the people of Nandigram face a future of pauperisation which compels them, whether or not they have given their support to the CPI M in the past, to defend their livelihood from the intrusion of the Indonesian Salim group and its projected SEZ.

The pressure of US imperialism is mounting on the political class to further push forward the neo-liberal globalisation agenda in India and to effect a deeper alignment of the country with the requirements of US foreign policy around the world. The two major parties of the big bourgeoisie and landlordism, the Congress and the BJP in the main concur with the economic and political policies of the US; sections of the CPI and the CPI M still retain significant reservations on this score. It must be considered positive that the current peoples’ struggles in Singur and Nandigram have compelled the central government to rethink and prettify their policies on SEZs in the country and led to a belated, half-hearted and partial re-evaluation of their role by the parties of the left front government in West Bengal. The need of the hour is to unite all the democratic forces who are opposing the effects of the current neo-liberal programmes in order to halt and reverse them and to substitute in their stead a programme of pro-people industrial development founded on adequate compensation for the potentially displaced and the consent of the working people: for this strong, steady and sustained pressure will have to be brought on the left front government of West Bengal. This is the immediate task of the genuine left and democratic forces in the country.

Revolutionary Democracy
25th March 2007

Notes:

SEZ: Special Economic Zones, where normal laws of the country do not apply, right to form unions etc.

IMF: International Monetary Fund.

RSS: Rashtriya Swayamsevak Sangh, National Volunteers’ Organisation, a Hindu fascist organisation which guides the BJP.

BJP: Bharatiya Janata Party, the Indian People’s Party. A Hindu Fascist Party which indulges in pogroms of Muslims. Some 3,000 Muslims were massacred by them in 2002 in the state of Gujarat.

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