Category Archives: French Imperialism

Soviet Democracy and Bourgeois Democracy

This pamphlet is a translation of an essay published in the symposium Soviet Socialist Society prepared by the Institute of Philosophy of the Academy of Sciences of the U.S.S.R. and published by the Gospolitizdat, Moscow 1949.

The question of democracy, of how it is to be correctly understood, of the fundamental distinction between Soviet socialist democracy and bourgeois democracy is a highly important question of our time.

Since the Great October Socialist Revolution there have been revealed to the full the great advantages possessed by Soviet socialist democracy, and the decay, crisis and utter decline of bourgeois democracy.

The Great Patriotic War of the Soviet Union against Hitler Germany showed the invincible strength of the Soviet social and state system. The war showed that “…the Soviet social system is a better form of organization of society than any non-Soviet social system.”[*] The war showed that the Soviet system of state is the best state system ever known to history.

The Soviet State, Soviet socialist democracy emerged from the war stronger than ever. And now, after the close of the war, Soviet democracy is blossoming forth anew, is achieving new successes.

In a number of European countries – Bulgaria, Czechoslovakia, Poland, Albania, Rumania, and Hungary – the system of People’s Democracy has been established. The peoples of these countries displayed self-sacrifice and heroism in the struggle against the fascist oppressors. Having, with the aid of the Soviet Army, secured their liberation from the Nazi yoke, they set about building a democratic order in their countries, but in a new fashion, in a way that rejected the old models of bourgeois-parliamentary democracy. The democracy that arose in these countries assumed new forms, of a higher type than those of the old bourgeois-parliamentary democracy. In these countries democracy is being extended and developed on a scale that indicates that the workers and peasants are really being involved in the administration of the State and that is making the blessings of democracy actually available to the wide masses of the people. New forms of organization of the State have thus arisen which constitute a big advance on the bourgeois democratic states and are opening up the possibility for further progress by these countries on the road to Socialism.

The war also revealed tremendous defects in the old bourgeois-parliamentary forms of democracy. The course of historical development had proved irrefutably that the bourgeois-democratic states, as a result of their flirting with fascism, and their concessions to fascism during the period that preceded the second world war, were in fact – at the beginning of the war – helpless to meet the danger that threatened all the achievements of civilization and democracy, and the free national existence of these countries. The war showed that it was only thanks to the Soviet Union and to the decisive part it played in routing the Nazi aggressors that European civilization was saved from destruction.

* * *

The basic feature of bourgeois democracy, as has been repeatedly noted in the works of the classics of Marxism-Leninism is the fact that it is democracy for the exploiting minority and is directed against the majority. Speaking of bourgeois democracy, Lenin and Stalin pointed out that it undoubtedly constituted progress as compared with feudalism and mediaevalism. The working class has used and endeavours to use the framework of bourgeois democracy so as to develop the class struggle, to set up and consolidate its class organizations. But while Lenin and Stalin pointed to this significance of bourgeois democracy for the working class, they also constantly indicated that bourgeois democracy, based as it is on the dominance of private ownership of the means of production, is formal, false and truncated democracy. “Bourgeois democracy,” wrote Lenin, “although a great historical advance in comparison with mediaevalism, always remains – and under capitalism cannot but remain – restricted, truncated, false and hypocritical, a paradise for the rich and a snare and a delusion for the exploited, for the poor.”[†]

Those who uphold bourgeois democracy use fine phrases about “equality,” “liberty” and “fraternity” in an endeavour to hide the actual domination of the exploiters over the exploited, which is based on the private ownership of the means of production.

Lenin pointed out that general phrases about liberty, equality, democracy are in fact nothing more than the blind repetition of concepts copied from the relations of commodity production. “From the point of view of the proletariat,” wrote Lenin, “the question can be put only in the following way: freedom from being oppressed by which class? equality between which classes? democracy based on private property, or on the struggle for the abolition of private property? – and so forth.”[‡]

Employing all the rigour of Marxist analysis, Lenin and Stalin unmasked bourgeois democracy and placed the issue on the only correct and scientific basis.

Comrade Stalin, in his report on the Draft Constitution of the U.S-S.R. said the following: “They speak of the equality of citizens, but forget that there cannot be real equality between employer and workman, between landlord and peasant, if the former possess wealth and political weight in society while the latter are deprived of both – if the former are exploiters while the latter are exploited. Or again: they speak of freedom of speech, assembly, and the press, but forget that all these liberties may be merely a hollow sound for the working class, if the latter cannot have access to suitable premises for meetings, good printing shops, a sufficient quantity of printing paper, etc.”[§]

When elucidating the specific features of the history and traditions of bourgeois democracy in each country, the classics of Marxism-Leninism pointed out at the same time that “… the most democratic bourgeois republic is a machine for the oppression of the proletariat by the bourgeoisie.”[**]

What distinguishes the epoch of imperialism from the preceding period, the epoch of free competition, is the fact that under imperialism state activity is marked by a turn, all along the line, to political reaction. In both foreign and home policy imperialism strives to violate democracy and establish reaction. These reactionary strivings of imperialism are being displayed more and more glaringly in the political life of present-day England and the U.S.A. This, however, does not prevent those who defend imperialism from talking without end about all the different “freedoms” that are supposed to be part of bourgeois democracy.

Let us, for example, take the question of the so-called “freedom of the press” in bourgeois countries. The fact that a multitude of newspapers of various trends is published in foreign countries, that arguments ensue among these papers on various secondary problems, that different viewpoints are expressed, that criticism is occasionally levelled in these newspapers at those who captain the bourgeois ship of state – all this is lauded to the skies by the advocates of bourgeois democracy. They bring these points forward as evidence of the freedom of the press that is supposed to exist in the bourgeois countries.

Actually, however, the so-called “freedom of the press” in bourgeois society means nothing more than freedom for the capitalists to control the press and to “shape” public opinion to suit their own interests. “Freedom of the press in capitalist society,” said Lenin, “means freedom to trade in the press and in influencing the masses of the people. Freedom of the press means maintaining the press, a most powerful instrument for influencing the masses of the people, at the expense of capital.”[††] Such is the real worth of bourgeois freedom of the press.

The false character of the so-called freedoms, particularly freedom of the press, has even had to be admitted by many publicists and sociologists who defend bourgeois democracy.

Or let us take the so-called “freedom of elections” which is lauded in every way by the apologists of present-day bourgeois democracy. The fact that different parties participate in elections, that a struggle takes place among them, and that these parties advance different programs is extolled by the apologists of bourgeois democracy as evidence of the existence of a supposedly genuine democratic system in these countries. Yet if we delve into the essence of bourgeois “freedom of elections,” so-called, we will see that this boasted “freedom of elections” is as much a fraud as is “freedom of the press.”

Marx, in his work The Eighteenth Brumaire of Louis Bonaparte, already characterized bourgeois constitutions as follows: “…each paragraph of the Constitution contains its own antithesis, its own Upper and Lower House, namely, liberty in the general phrase, abrogation of liberty in the marginal note.”[‡‡]

Basing himself on later historical experience, Lenin continued this characterization of bourgeois liberties as follows: “… under bourgeois democracy the capitalists, by a thousand and one tricks – which are the more artful and effective the more “pure” democracy is developed – – debar the masses from a share in the work of administration, from freedom of the press, the right of assembly, etc… . For the toiling masses, participation in bourgeois parliaments (which never decide important questions under bourgeois democracy; they are decided by the stock exchange and the banks) is hindered by a thousand and one obstacles, and the workers know and feel, see and realize perfectly well that the bourgeois parliaments are institutions alien to them, instruments for the oppression of the proletarians by the bourgeoisie, institutions of a hostile class, of an exploiting minority.”[§§]

Numerous restrictions exist, both in Great Britain and the United States, that prevent the suffrage being universal. There are restrictions of various kinds on the suffrage, in the shape of literacy qualifications, a poll tax and so on and so forth. In the U.S.A. Negroes possess the formal right to vote and be elected, but in actual practice on only one occasion in fifty years was a Negro elected to Congress. When elections are about to take place in the U.S.A., Negroes have to undergo quite a meticulous examination to establish their ability to read and write, and frequently their “political knowledge.” This is done so as to deprive the overwhelming majority of the Negro population of the suffrage.

Facts of this kind – proof that the freedom of elections is in fact restricted – are quite well known. A wealth of material exposing the sham of “freedom of elections” in bourgeois countries is to be found in the publications and statements of many, even loyal, upholders of bourgeois democracy.

In 1944, a book appeared in the U.S.A. entitled Democracy Begins at Home by Jennings Perry. The author, editor of the newspaper Tennessean, devotes this work to the problem of the poll tax in the State of Tennessee and in the Southern States in general. The book discloses a highly interesting picture of the morals characteristic of present-day American democracy. It turns out that in the U.S.A. the years 1889 to 1908 saw the gradual introduction in all the states of something in the nature of a tax on the right to vote. It became the rule that citizens could not participate in the elections unless they paid this tax.

What effect did this tax have on the elections? In 1936 there took place the election of the Governor of the State of Tennessee. Of a total of 1,200,000 electors only 352,000 voted. A certain adventurer and racketeer by the name of Crump controlled a solid block of between 60,000 and 70,000 votes and so had the entire State of Tennessee in his grip. Here is an eloquent description of him, given in 1939 by the United Press correspondent, John Parris: “Edward Hull Crump can lift the telephone in his insurance and real estate company office and with one command send 60,000 sovereign Democrats to the secret polls to do his bidding.”

The author of the above-mentioned book cites facts to show how democracy has gradually disappeared in Tennessee. “We,” he writes, “have retrogressed toward government by a chosen few at a rapid rate,” democracy has turned into oligarchy.

An idea of the system and character of general elections in Great Britain is given in the book of the Liberal Party leader, Ramsay Muir, entitled How Britain Is Governed. In this book the British election system is called outright “in the highest degree unjust, unsatisfactory and dangerous.” This system, wrote Muir, “actually disfranchises a large majority of the electors. If we could estimate the total of those whose votes are of no avail because they have voted for unsuccessful candidates; of those who have refused to use their votes because there was no candidate with whom they agreed; and of those who have voted reluctantly for somebody who did not represent their views merely because he was less objectionable than the available alternatives: we should probably find that something like 70 per cent of the total (electorate had either been unable to exercise any influence upon the course of events by the use of their votes, or had been compelled to give their support to some doctrine or policy with which they disagreed.”[***]

In the British General Election of 1945, over 8 million electors, or 25 per cent of the total, did not vote. In the 1946 Congressional elections in the U.S.A., only 39 per cent of the electors voted, a fact that was considered by the entire American press to be indicative of very great activity on the part of the electors.

That is how matters stand as regards the so- called “General Elections” in Great Britain and the U.S.A. All these data provide the clearest and most convincing proof that the elections in bourgeois-democratic countries are not general at all and that bourgeois democracy is a hypocritical, truncated, and false affair.

What bourgeois democracy really is and how the bourgeoisie of today understand political liberty was shown by the elections to the legislature held in Italy in April 1948. In order to ensure that the forces of bourgeois reaction should achieve victory over the People’s Front parties in Italy, international imperialist reaction, headed by the U.S.A., openly threatened to resort to armed intervention, should the People’s Front parties be the victors.

The U.S. State Department declared that if the People’s Front were victorious all aid to Italy in the shape of food and manufactured products would be stopped. Atom bombs, wrote the American press, would be dropped on those towns where People’s Front candidates were elected. American warships carrying troops were anchored in Italian ports. French troops were brought up to the Italian frontier. In violation of the peace treaty with Italy, the De Gasperi government set up powerful police forces, equipped with American tanks, armoured cars, and artillery. Terror was employed openly and on a mass scale against people, against the progressive forces; so too were intimidation, threats, blackmail and plain deception, in a word, all possible means were brought into action in order to ensure victory for Italian reaction. The Vatican, too, with its black army of a million and a half priests, monks and nuns – in violation of all the laws forbidding the Vatican to interfere in political life – joined in the election campaign on the side of Italian reaction.

Reaction, lay and spiritual, threatened to withhold absolution, to bring down all the torments of Hades on the heads of those who refused to vote for the parties of bourgeois reaction. But, neither open terror, violence, deception, increased ideological pressure, nor the blatant and impudent intervention of the American Government in Italy’s internal affairs succeeded in bringing victory to reaction. Whereupon the De Gasperi government and its minister Scelba proceeded to falsify the election results by every possible means.

The Italian elections of April 1948 will go down in the history of bourgeois democracy as a most abominable and disgusting mockery of democracy and freedom.

* * *

The war of 1914-18, Lenin pointed out, made clear even to backward workers the real character of bourgeois democracy as being the dictatorship of the imperialist bourgeoisie. The war tore the false trimmings from bourgeois democracy, and showed that it was the thirst of the imperialist powers for conquest that was responsible for millions of people being killed. During the post-war period the real countenance of bourgeois democracy was still more clearly revealed. In a number of European countries, and first and foremost in Germany and Italy, bourgeois democracy actually paved the way there for the victory of fascism. The fascists began to kindle a new world war. As to the ruling circles of the “‘democratic” countries, particularly the ruling Conservative circles of Great Britain, they pursued a policy of “appeasing” the fascists, of pleading with the fascist “führers,” a policy of concessions to the fascists, of inciting the fascist aggressors to attack the U.S.S.R. The ruling circles of the U.S.A., on their part, financed the re-armament and further armament of imperialist Germany. As a result, the fascist aggressors let loose a new world war, which cost tens of millions of lives and threatened the freedom and independence of the nations of Europe and the whole world, and the democratic gains of the working people.

However, even the second world war taught little to the ruling circles of the present- day bourgeois-“democratic” countries, who still continue to connive with fascist elements. The reactionary groups in the U.S.A. are conducting an anti-popular domestic policy, one directed against the workers’ organizations, against progressive social ideas and progressive public figures. The governments of the imperialist states are pursuing a policy of supporting the reactionary elements all over the world, a policy of suppressing the movement for national liberation in the colonial countries. Militarization on an enormous scale is taking place in the countries of old, bourgeois democracy which at one time, in the epoch of pre-monopolist capitalism, were distinguished, among other things, by the fact that militarism and military cliques were little developed there.

In January 1947, the American liberal weekly The New Republic published an article by Henry Wallace, former Vice-President of the U.S.A. This article, in which he disclosed the growth of militarist tendencies in the U.S.A., caused a tremendous uproar in that country. Army and militarist circles, declared Wallace, dominate in the sphere of scientific research, and control scientists. The military buy science and scientists. Many American universities derive more funds from the War Department than from all other sources put together.

Wallace wrote that prior to the war the U.S.A. expended almost 50 million dollars annually on research work. In 1946 they expended almost one billion dollars, 90 per cent of which was for war purposes. Science – he said – was degenerating to the brute level of Nazism, when it expended the greater part of its time working out methods of destroying human life.

The military outlook, continued Wallace, must not be permitted to dominate over science in peacetime. If we permitted the present situation to continue, things would finally reach a point where a semi-military police state would be established in the U.S.A.

Similar reproaches were levelled at bourgeois democracy by Stafford Cripps, in a book published in England comparatively recently and entitled Democracy Up-to-Date. The author speaks of the decline of democracy in Great Britain. Proof of this, he states, is to be found in the apathy of the electors, in the lack of interest in the House of Commons and its work. Cripps admits that the system of British democracy suffers from grave defects “arising out of the advantages which wealth can give to one or other side in an electoral contest.”

Now that Cripps has become one of the leading figures in the British Labour Government, he is exerting no little effort to ensure that the profits of the capitalists go up, and that the standard of living of the workers goes down.

Such are the fundamental defects of present-day bourgeois democracy, as admitted even by supporters and upholders of the bourgeois system.

The real rulers of American “democracy” are the oil, chemical, steel and other magnates, the bosses of the huge monopolies and trusts; they include Herbert Hoover, ex-president of the U.S.A., Du Pont, member of the board of the chemicals and explosives company that is playing a leading part in the production of atom bombs, the Rockefeller-Morgan group, the banker Eugene Meyer, the owners of the majority of the shares of General Motors and General Electric, the Fords and Whitneys, the Mellons, Harknesses and others.

In 1946 there was republished in the U.S.A. Lundherg’s America’s 60 Families, a book that describes the financial oligarchy of present-day America which is made up of approximately 60 of the wealthiest families and is the unofficial, invisible, behind-the-scenes but actual government, the “money government.” “The outstanding American proprietors of today,” writes Lundberg, “tower historically over the proud aristocracy that surrounded Louis XIV, Czar Nicholas, Kaiser Wilhelm, and the Emperor Franz Joseph, and wield vastly greater power. The might of cardinal Richelieu, Metternich, Bismarck, or Disraeli was no greater than that of private citizens, undistinguished by titles, like J. P. Morgan, Andrew W. Mellon, John D. Rockefeller, Henry Ford and the Du Ponts.” They it is who are the uncrowned kings of America. They it is who exert enormous influence over the line of government policy, they it is who pursue the policy of fighting the workers and the trade unions within the country. They, the uncrowned kings, are the power behind the scenes, and the official organs of government pay careful heed to their instructions, to their desires.

Present-day American democracy is in fact “democracy” for suppressing the working-class movement within the country, “democracy” for supporting the most reactionary elements throughout the world, “democracy” for unbridled imperialist expansion. The anti-labour Truman- Case and Taft-Hartley Acts, the effort of reaction to destroy the workers’ organizations and deprive the workers of their rights, the campaigns of mass terror directed against the Negroes, the incitement of anti-Semitism, and the persecution of Communists – all these are glaring illustrations of the organic defects of present-day American “democracy.”

With ever growing frequency the demand is being raised in the columns of the reactionary press and on the floor of Congress that the activities of the Communist Party be banned. Thus, at the Congress session of January 23, 1947, the Republican Dirksen raised the demand that the government take measures against Communist Party activity in the U.S.A.; McCormack went still further and demanded not only that the Communist Party be banned but also that a crusade be conducted against Communism in Europe. He called on the U.S. Government to render more energetic and active support to the reactionary elements in France, Italy, Spain and other countries. In March 1947, the Secretary of Labour of the United States, Schwellenbach, speaking before the House Committee on Labour and Education, declared in favour of the Communist Party being outlawed. Schwellenbach demanded that Communists be dismissed from public bodies of every kind, and that they be deprived of the right to hold office in the trade unions. The whole of this campaign was crowned by the arch-reactionary Mundt Bill, directed against the elementary civil rights of the industrial workers and working people in general.

The ultra-reactionaries in the U.S.A. are openly driving the country to fascism. Numerous government bodies resort to unconstitutional practices in conducting an organized ideological and political campaign against the Communists and the entire labour movement. Many reactionary newspapers call for the summary liquidation “here and now,” of the Communist Party, trade union and other progressive organizations; they demand that active members of the labour movement be ruthlessly dealt with. This “crusade” of the reactionary press in the U.S.A. brings back to mind the “famous” campaigns conducted by the German fascists in the years preceding their advent to power.

Thomas, then chairman of the notorious Committee to Investigate Un-American Activities made the statement in Congress that: “Our job for the next two years shall be to rout them [the Communists] out.” (The New York Times, Nov. 27, 1946.)

On the insistence of Thomas and Hoover a special committee was appointed at the end of November 1946 to investigate “officials under suspicion” and to purge government institutions of the “reds.”

The New York P. M. in an item dealing with the commencement of the operations of this Committee wrote that the attempt to replace the Civil Service Commission by the Federal Bureau of Investigation constituted a great danger. Should such a replacement take place it would be one more step, and a very disastrous one, towards transforming the Federal Bureau of Investigation into a political police force, and the United States into a police state. This would be a “disruptive” act of far greater dimensions than anything any official could commit.

In March 1947 Truman issued an order, that went into immediate effect, for all civil servants to undergo investigation and for the dismissal of all “subversive” persons, i.e., of those suspected of adherence to or sympathy with the Communist and other democratic organizations. With a view to covering up the fact that the drive was aimed at democratic organizations, Truman’s order placed the Communist and other democratic organizations on a level with fascist organizations. The order required 2,300,000 U.S.A. civil servants to undergo examination by the Federal Bureau of Investigation.

Needless to say, this order will least of all affect the fascist and semi-fascist elements, who often occupy quite important posts in the U.S.A. It will be directed and wholly operated against the progressive and democratic elements in the country.

Such are the facts that supply us with a picture of the state of present-day American “dollar democracy.” Formally the democratic freedoms are exalted and propagated. Actually they exist merely for those who have the dollars. Formally the praises are sung, in a hundred and one different ways, of “freedom of speech,” “freedom of the press,” and “freedom of assembly.” Actually these freedoms are enjoyed, and enjoyed without limit, by the reactionary circles and organizations that are supported by the magnates of finance capital. As to the progressive organizations, personalities, and press, every possible obstacle is raised to prevent them developing their activity.

And what can be said of the reactionary and expansionist policy that is being conducted by American imperialism behind a smoke screen of talk about democracy? The American imperialists are giving every possible support to the reactionary elements in Japan; the imperialists of the U.S.A. and Great Britain are lending their aid to all the reactionary elements in Europe, the Near and Middle East, Greece and Turkey. The American imperialists are actively assisting Chiang Kai-shek’s fascist clique in their war on the Chinese people. The troops of “democratic” Holland, supported by the British and Americans, are suppressing the struggle for national liberation in Indonesia.

In November 1918, Lenin pointed out, in an article entitled “Valuable Admissions of Pitirim Sorokin,” that “… Anglo-American imperialism, which is reinstating reaction all over the world and has perfectly learned how to use the form of the democratic republic”[†††] is stifling the small and weak nations.

This characterization, as given by Lenin, is fully applicable today to the policy of the reactionary circles of the U.S.A. and Great Britain.

With the connivance of the Labour Government the fascist organizations in England are freely extending their disruptive activities. Mosley, one of the leaders of British fascism, has his own publishing establishment. In 1946 he published his book My Answer, which even the Conservative Lord Elibank compared to Hitler’s Mein Kampf. A number of fascist organizations, like the Duchess of Atholl’s British League for European Freedom, have been established and are operating in England. This latter organization gathers together the fascist and Whiteguard dregs from the People’s Democracies. Other fascist organizations, like the British People’s Party, the League of Christian Reformers, and the Imperial Fascist League openly and systematically propagate racial theories of the wildest type. All these organizations have combined in a fascist “congress.” At a meeting held in London on December 10, 1946, and convened by the fascist “congress,” John Beckett cynically and brazenly extolled the Nazi Party and its bandit policy.

And such statements are being made openly now, after all freedom-loving mankind has seen that fascism means the enslavement and extermination of nations, the destruction of the world’s culture!

The fascist elements are openly renewing their activity in South Africa, where the machinery of state is being fascised, racial discrimination is practised, raids are made on workers’ organizations, and their leaders are arrested. All these things are being done by the South African Government, which is headed by fascist, racialist politicians.

The fascist party has been legalized in Canada. The leader of this party, Adrien Arcand, recently declared that fascism in Canada was stronger now than ever before. He maintains contact with the fascists in Great Britain, the Union of South Africa, New Zealand, and elsewhere.

The historical experience of the bourgeois-democratic countries teaches us that to give the fascists a free hand means to doom the working people to oppression of the worst kind, to threaten the very existence of the peoples. To give the enemies of democracy a free hand is not democracy but the negation of it. To give a free hand to the enemies of democracy is to create favourable conditions for the growth of fascism.

The time has passed when the doors of Great Britain were open to revolutionary refugees from various countries, when such men as Marx, Engels, Herzen, Kossuth, and Mazzini could conduct their activities relatively unhindered. On the contrary, England – the very England where the Labour Party, which considers itself to be a veritable buttress of democracy, is in power – gives sanctuary to the most reactionary fascist and pro-fascist elements, who have been flung out of their countries by the regimes of People’s Democracy.

The Chetniks of Yugoslavia, and the Rumanian, Polish and Bulgarian Whiteguards have found a haven and a “pleasant reception” in Great Britain. This fascist scum, these worst enemies of the people are given facilities in England to hold meetings, to publish their filthy newssheets, to engage in provocative machinations, to stir up trouble and to conduct disruptive work. And all this is done supposedly in pursuance of the principles of democracy, in the name of “freedom of speech,” “freedom of the press,” etc. Is any more obvious proof required of the deep deficiencies and cankers of present-day bourgeois democracy?

The defeat of the Conservatives and the advent to power of the Labour Government were a reflection of the fact that the working masses of England had moved considerably to the left. In voting down the policy of Churchill and the Tories, the British working class hoped that with the Labour Party in power a considerable change in government policy would result. Such change, however, did not ensue. The actual fact is that Great Britain, where the Labour Party is in power, is engaged in suppressing the movements for national liberation in India, Egypt, Indonesia, Palestine and other countries, in supporting the forces of reaction in Europe – in Greece, Spain, the western zone of Germany, Austria and other countries.

The Labour Party leaders consider theirs to be a socialist government, but they have kept intact the old, bourgeois machinery of state which is unable to conduct anything other than an imperialist policy. They have kept intact the economic system of capitalism. The nationalization of the mining and certain other industries in England does not abolish the domination of British monopoly capital, while the imperialist policy of the British Government is a sufficiently clear indication of the character of present-day bourgeois democracy in Great Britain.

* * *

Soviet democracy differs fundamentally from bourgeois democracy.

Born in October 1917, Soviet socialist democracy has proved to be a great, vital and transforming force. The victory of the Great October Socialist Revolution meant that the epoch of the parliamentarism of the capitalists had been replaced by an epoch of Soviet institutions of state.

What are the specific features of Soviet democracy?

Firstly, its economic basis is the predominance of the social ownership of the means of production. The victory of Socialism in our country, the absence of exploiting classes – such is the basis on which socialist democracy is flourishing. It is a democracy that differs in principle from bourgeois democracy. Socialist democracy is democracy of a higher type.

For the first time in history there has grown up and acquired strength a Socialist State in which the entire population has been drawn into active participation in the country’s political life; for the first time a political system has developed and become firmly established under which the widest masses of the people really, and not in words alone, take part in administering the State.

Secondly, Soviet democracy is not ordinary democracy, but socialist democracy. The specific feature of the Constitution of the U.S.S.R. is that it does not limit itself to registering the formal rights of citizens, but places the main emphasis on the question of guaranteeing these rights. In the U.S.S.R. not only is the equality of the rights of citizens proclaimed – this equality of rights is guaranteed by the fact of the abolition of the exploitation of man by man. In the U.S.S.R. not only has the right to work been proclaimed – this right is guaranteed in fact. Socialist democracy has put an end, once and for all, to formal bourgeois democracy.

Thirdly, Soviet democracy is now based on the complete moral and political unity that has been achieved in Soviet society. The moral and political unity of the Soviet people – the result of the elimination of the exploiting classes in our country and of the enormous amount of educational work done by the Bolshevik Party – is a supreme achievement of our time. Under capitalism, where society is split into warring classes, the unity of society is unthinkable. The moral and political unity of the people, which came into being as a result of the victory of Socialism in our country, is a motive force of the development of Soviet society, an expression of genuine socialist democracy and a condition of its further vigorous growth.

Fourthly, a specific feature of Soviet socialist democracy is that the leading force in our country, the vanguard of the people, is the Bolshevik Party, the Party of Lenin and Stalin. The fact that a single, united Party exists which is leading forward the peoples of the Soviet Union and giving best expression to their interests is a subject of countless attacks on Soviet democracy by bourgeois publicists. In the view of the apologists of bourgeois democracy, the existence in a given country of a number of parties and the struggle that goes on between them constitute one of the fundamental features of democracy, whereas the absence of such a struggle in the Soviet Union and the existence of only one party prove, so they aver, that our democracy is defective. But these upholders of bourgeois democracy deliberately gloss over the fact that in bourgeois society, split, as it is, into classes with their antagonistic class interests, and torn by the struggle between various social groups, the existence of a number of warring parties is inevitable. These individuals, moreover, maintain silence about the fact that there is no difference in principle between the Republican and the Democratic parties in the U.S.A. They are actually one party. They are two factions of the bourgeoisie, which take turns in oppressing the people.

In Soviet society, which is free of class antagonisms, there is no basis for a number of ‘ parties; there is one party and it best reflects the interests of the people. The Bolshevik Party is a party that deservedly enjoys the undivided confidence of the people, for it has proved in practice its self-sacrificing devotion to the people and its ability to lead them in their great historical enterprise.

As far back as the year 1936, Comrade Stalin said: “As to freedom for various political parties, we adhere to somewhat different views. A party is a part of a class, its most advanced part. Several parties, and, consequently, freedom for parties, can exist only in a society in which there are antagonistic classes whose interests are mutually hostile and irreconcilable – in which there are, say, capitalists and workers, landlords and peasants, kulaks and poor peasants, etc. But in the U.S.S.R. there are no longer such classes as the capitalists, the landlords, the kulaks, etc. In the U.S.S.R. there are only two classes, workers and peasants, whose interests – far from being mutually hostile – are, on the contrary, friendly. Hence, there is no ground in the U.S.S.R. for the existence of several parties and, consequently, for freedom for these parties. In the U.S.S.R. there is ground only for one Party, the Communist Party. In the U.S.S.R. only one party can exist, the Communist Party, which courageously defends the interests of the workers and peasants to the very end. And that it defends the interests of these classes not at all badly, of that there can hardly be any doubt.”[‡‡‡]

In the shape of the Soviet State we have a political organization of society that is millions of times more democratic than the most democratic bourgeois republic. “Only Soviet Russia” – wrote Lenin – “has given the proletariat, and all working folk – the overwhelming majority of the people of Russia – a freedom and democracy unparalleled, impossible and unthinkable in any bourgeois-democratic republic; it has done so by, for example, depriving the bourgeoisie of palaces and mansions (without this, freedom of assembly is hypocrisy), by depriving the capitalists of the printing presses and newsprint (without this freedom of the press for the working majority of the nation is a fraud) and by replacing bourgeois parliamentarism by the democratic organization of the Soviets, which are a thousand times closer to the ‘people,’ more ‘democratic’ than the most democratic bourgeois parliament.”[§§§]

Already on the eve of the October Revolution, when elaborating the theoretical principles of the Soviet State, Lenin pointed out that the Soviets, as the state form of the dictatorship of the proletariat, constitute a new type of state machinery, an apparatus providing an indissoluble, close, easily tested and renewed link with the popular masses such as the former state apparatus never possessed in the remotest degree. “Compared with bourgeois parliamentarism,” said Lenin, “this represents an advance in the development of democracy which is of historical and world-wide significance.”[****]

The Soviet state system best serves to defend and guarantee the interests of the peoples of the U.S.S.R. That is why the masses of the people have so great a love for the Soviet system, why they are so devoted to their Socialist Motherland, which inspires them to perform deeds of heroism. Soviet patriotism is one of the great motive forces of the development of Soviet society. During the Great Patriotic War, the patriotism of the workers, peasants and intelligentsia was displayed in all its titanic might.

In his report on the occasion of the 27th anniversary of the Great October Socialist Revolution, Comrade Stalin gave the following classic definition of the essence and the strength of Soviet patriotism:

“The strength of Soviet patriotism lies in the fact that it is based not on racial or nationalistic prejudices, but upon the profound devotion and loyalty of the people to their Soviet Motherland, on the fraternal cooperation of the working people of all the nations inhabiting our country. Soviet patriotism is a harmonious blend of the national traditions of the peoples and the common vital interests of all the working people of the Soviet Union.”[††††]

The proposition advanced here by Comrade Stalin, which generalizes the very rich experience of the friendly cooperation among the nations of the Soviet Union, and of the development of their statehood and culture, is one of the outstanding discoveries made in the development of Leninist theory and is of the greatest importance as regards the political education of the people, as regards their education in the spirit of Soviet patriotism.

Soviet patriotism has grown and blossomed forth under Soviet democracy. Just as Soviet socialist democracy is a higher type of democracy differing fundamentally from the old forms of bourgeois democracy, so Soviet patriotism is a new and higher type of patriotism. Its source is the victory of the Great October Socialist Revolution, the construction of Socialism in our country. Soviet patriotism develops on a new social and economic foundation, on the basis of new social relations.

The Soviet State has shown, and continues to show, itself to be a tremendous transforming force. The transformations that have been effected in the U.S.S.R. and that have, in a brief historical period, turned our native land into a mighty industrial and kolkhoz power, show how great are the forces that Soviet socialist democracy can rouse, mobilize and direct for creative endeavour. Soviet democracy showed itself to be a great force in the building of socialist society, in the defence of the Socialist Homeland against the fascist invaders, and is a powerful factor facilitating the further onward march of Soviet society, towards Communism.

The entire system of organization of the Soviet State is adapted to raising the creative energy of the popular masses to the maximum degree for the solution of the tasks of socialist construction. In the U.S.S.R., for the first time in human history, millions upon millions of the common people have been drawn into conscious political activity, into the building of the new, Communist society, and the mighty energy of the people has been aroused. “The living creative work of the masses,” Lenin said, “is what constitutes the main factor of the new social order.”[‡‡‡‡]

Gorky, in his novel Mother, makes one of his characters say the following words: “Russia will be the finest democracy in the world.” This dream of the great proletarian writer has found its living embodiment in our country.

One of the basic illustrations of the genuinely popular character of Soviet democracy is the fact that the masses of the people play a real part in administering the State, that no barrier exists in our country between the machinery of state and the people. The creative initiative of the masses, the pulsating activity of public organizations, the ever new forms of participation by the working people in economic and cultural development, the political activity of the people – all these are remarkable indexes of the great Soviet democracy existing in the U.S.S.R. It is the popular masses – those who in the most democratic bourgeois republics formally possess equal rights but actually are prevented from participating in the administration of the State – who under the Soviet system are drawn “unfailingly into constant and, moreover, decisive participation in the democratic administration of the state.”[§§§§] The main process taking place in our country in the upbuilding of the Soviet State is that of the constantly growing political activity of the popular masses, of the continuous promotion from the very midst of the people of new individuals possessed of organizing capacity, new men of talent, outstanding statesmen.

Since the adoption in 1936 of the Stalin Constitution, elections in the U.S.S.R. to the organs of supreme power have taken place on four occasions, viz.: twice to the Supreme Soviet of the U.S.S.R., and twice to the Supreme Soviets of the Union Republics.

In 1937, in the elections to the Supreme Soviet of the U.S.S.R., 96.8 per cent of the electors recorded their votes, and the candidates put forward by the bloc of Communists and non-Party people received 98.6 per cent of the total votes cast. Almost 90 million people voted solidly at that time for the bloc of Communists and non-Party people.

In 1938, in the elections to the Supreme Soviets of the Union Republics, the bloc of Communists and non-Party people received the votes of 99.4 per cent of electors who voted.

In 1946, in the elections to the Supreme Soviet of the U.S.S.R., 99.7 per cent of the electors recorded their votes, and the candidates put forward by the bloc of Communists and non-party people received 99.18 per cent of the total votes cast. Over 100 million electors voted as one man for the Bolshevik Party, and for the further consolidation of the Soviet State.

In the early part of 1947 there took place the elections to the Supreme Soviets of the Union Republics. The results constitute a further splendid victory for Soviet democracy, as the following figures will show:

What do these figures show?

Firstly, that in the Soviet Union practically all the electors, with absolutely insignificant exceptions, exercise their voting rights. This is testimony to the high level of civic consciousness, to the tremendous political activity of the masses of the people. The working folk of the Soviet Union take part in the elections as in some great festive event. Such a state of affairs is absolutely unthinkable in bourgeois society; it is the product of the victory of Socialism, and of that alone.

The entire system of organization of the elections – from the consistent, thoroughly democratic method by which our public organizations nominate candidates, and the method by which candidatures are discussed, to the provision of all the conditions necessary to enable each elector to fulfil his civic duty, wherever he may be when the elections take place – this entire system of organization of the elections is marked from beginning to end by genuine Stalinist love for the working people, by concern for their interests and requirements, by the striving to ensure that the masses are drawn to the maximum degree into the actual administration of the State.

Secondly, that with absolutely insignificant exceptions, all the electors who record their votes cast them for the bloc of Communists and non-Party people. This complete unanimity displayed in the voting is an expression of the complete moral and political unity of the people, a unity of the people such as is created and consolidated by the socialist system of society. The people stand forth as a single whole, in the real sense of the term.

In the Stalin constituency of Moscow where on February 9, 1947, the candidate in the election of the Deputy to the Supreme Soviet of the Russian Soviet Socialist Republic was J. V. Stalin, 100 per cent of the electors recorded their votes. Not a single one of the ballot papers was invalid, neither did a single one of them register rejection of the candidate. J. V. Stalin was unanimously elected Deputy. The working people of all the Union and Autonomous Republics unanimously nominated Comrade Stalin as their No. 1 candidate in the elections of Deputies to their Supreme Soviets. Comrade Stalin is the elected representative of the entire Soviet people, a fact that splendidly reflects the unity of will and purpose of the Soviet people.

The name of Comrade Stalin is the symbol and banner of this unity. All our victories are bound up indissolubly with the name of Comrade Stalin. It is characteristic that as Soviet electors voted for Comrade Stalin, they wrote on the ballot papers messages full of ardent love for their leader and teacher. They voted for the man who is leading the Soviet people on to Communism, who is the embodiment of the hopes and strivings of all the nations of the U.S.S.R.

During the elections the Soviet people showed with renewed vigour that they stand solid behind the Party of Lenin and Stalin, that they are supremely devoted to the interests of the Socialist Motherland.

Only in the Land of Socialism, where socialist democracy prevails, where the gains we have achieved are inscribed in letters of gold in the Stalin Constitution is there such a manifestation of civic consciousness and patriotism. Such unity in voting, such a manifestation of organization and unanimity in the election of candidates are possible only in Soviet society, where the people are free from all forms of exploitation whatsoever. Only the complete moral and political unity of the people renders possible such unanimity as is displayed in the voting during the elections to the supreme organs of the Soviet Union.

The Communist Party – the force that inspires, guides and directs the Soviet State – comes to the masses with a clear program for the development of the country, and in clear-cut terms defines the tasks facing the people. This program best expresses the interests of the people, their hopes and strivings. The Communist Party does all it can to ensure that every elector acquires a better and more profound understanding of its policy, which is the living basis of the Soviet system, that every elector takes an active part in discussing problems of State, and votes with full understanding for the bloc of Communists and non-Party people. As Lenin said: “In our view a state is strong in so far as the masses are conscious. It is strong when the masses know everything, can form an opinion of everything, and do everything consciously.”[*****]

In his historic speech delivered on February 9, 1946, Comrade Stalin said: “I regard the election campaign as the voters’ judgment of the Communist Party as the ruling party. The result of the election will be the voters’ verdict.”[†††††] The elections in the Soviet Union are a repeated indication of the love felt by the masses for the Bolshevik Party. The masses of the people in the Soviet Union, to whom the Bolshevik Party is near and dear, voluntarily entrust their destinies to it, for practical experience has convinced them that the Party of Lenin and Stalin has no interests other than those of the people, and has no tasks other than those of leading the people onward, towards an ever better life, to Communism. The Bolshevik Party gives scientific expression to the fundamental, vital interests of the masses of the people, and this is the necessary condition that ensures it the leading role it plays in the Soviet State. Comrade Stalin has spoken of the “subtle moral threads” that bind the Party to those outside its ranks, of the profound trust in the Party and its leadership felt by the popular masses of the Soviet Union. This, it is, that finds expression in the bloc of Communists and non-Party people at the elections to the organs of the Soviet State. Comrade Stalin has said: “There is not, nor has there ever been in the world such a powerful and authoritative government as our Soviet government. There is not, nor has there ever been in the world such a powerful and authoritative Party as our Communist Party.”[‡‡‡‡‡]

The elections in the Soviet Union are a great schooling in political activity, a manifestation of supreme political activity on the part of the people. Hundreds of thousands of active workers, agitators and propagandists, many tens of thousands of members of Ward and Constituency Electoral Commissions, and of electors’ representatives take part in the election campaigns. The elections are the occasion for a countrywide review by the people of achievements and successes and also for a criticism of the defects of the work of the various parts of the machinery of state. Countless meetings take place at which affairs of state, and candidatures, are discussed. In the political work it conducts in preparation for the elections the Communist Party reaches every single elector. As a result we can say that there has developed a new form of political life, unthinkable in bourgeois countries, a form of participation by the entire people in the discussion of affairs of state, in the solution of most important problems of state. Socialism has elaborated such forms as enable all the working people easily to be drawn into the administration of the State.

Such facts as the solid vote of over 99 per cent of the electors for the candidates of the bloc of Communists and non-Party people, for the policy of the Party of Lenin and Stalin, are events of the greatest historical importance. In events and facts such as these we see the remarkable results of the work done by the Bolshevik Party.

Much energy has been expended by bourgeois students of law and statecraft to prove the thesis that “real government by the people” is altogether impossible, that it is inevitable for representative bodies to lose touch with the people, that even the very best representative bodies in the last analysis degenerate. It has been asserted that it is impossible to give effect to democracy in a large country. Rousseau, as is well known, upheld in his Contrat Social the thesis that real democracy is only possible in a small country where all citizens can take a personal part in discussing affairs of state.

Under the bourgeois system, where a struggle takes place between antagonistic classes, real government by the people is impossible. But that which is unthinkable and impossible under capitalism, is thinkable, possible and actually effected under Socialism.

In his works preliminary to The State and Revolution Lenin, even before the victory of the Great October Socialist Revolution, wrote that under Socialism there would be complete, universal and unlimited democracy. This, he said, would be “the sort of new type of ‘direct popular legislation’ that Engels rejected under capitalism.”[§§§§§]

These views of Lenin about a new type of democracy based on the predominance of the social ownership of the means of production, have been fully implemented in the actual life of our country.

One of the striking indexes of the majesty of Soviet democracy is the complete equality of rights exercised by women in the Soviet State. Lenin said that woman’s position in society shows particularly clearly the difference between bourgeois and socialist democracy.

There is not a single bourgeois-democratic country in the world where women enjoy full equality of rights. In bourgeois countries women either play no part at all, or participate to a limited degree, in public and political life; female labour there is exploited and counted as the very cheapest. The proportion of female labour employed in the more important branches of industry, in the leading professions and in the different branches of culture, is negligible. Not a single bourgeois republic has given women equality with man, either formally or in fact.

The picture is absolutely different in the U.S.S.R. In the Soviet State women enjoy all rights to the full, on a par with men. They take a most active part in the economic, political and cultural life of the country, and fully and comprehensively display their creative abilities in the most diverse spheres of socialist construction. The history of the development of the Soviet State has shown what an enormous number of talented people, and of individuals with a capacity for organization are to be found among the masses of working women. Women occupy a place of honour everywhere in our country – in the kolkhozes and in industry, in all spheres of culture and science, in political and public organizations – and side by side with the menfolk are fulfilling the tasks facing the Soviet Land. “The unprecedented labour heroism,” said Comrade Stalin on November 6, 1944, in characterizing the part played by the women during the war, “displayed by our Soviet women and our valiant youth, who have borne the brunt of the burden in our factories and mills and in our collective and state farms, will go down in history for ever.”[******]

An index of the genuinely socialist character of our democracy is the fact that the national question has been successfully solved in the U.S.S.R. For the first time in the history of multinational states, the national question and the problem of cooperation among nations have been solved in the Soviet Union – the Land of Socialism. As is well known, the national question is an exceptionally complicated one. Under capitalism it is impossible to solve the national question. The existence of capitalism without the suppression of nationalities, without national oppression is just as impossible as is the existence of Socialism without the abolition of national oppression, without national freedom. The experience of Austria-Hungary, and of Turkey, and the instability of the present British Empire are the most palpable evidence of how unstable are bourgeois multinational states.

The solution of the national question in the U.S.S.R. is one of the supreme achievements of our age. The results of the October Socialist Revolution have shown themselves not only in the abolition of national oppression in our country, but also in the fact that there have been elaborated the forms of state which solve the national question, forms which unite the various nationalities into a single multinational Soviet State, distinguished by its stability and invincibility.

The beneficent influence of the October Socialist Revolution and of Soviet democracy has also been expressed in the fact that they have awakened to life and brought into the historical arena a number of formerly backward nations and nationalities, given them new life and new development. Formerly nations arose and became consolidated under the supremacy of the bourgeoisie. This resulted in two national cultures existing within each nation, and lent the dominant national culture an exploiting, nationalistic character.

The inexhaustible strength of the Soviet system and of Soviet democracy is expressed in the fact that many nationalities in our country are being consolidated as nations not under the aegis of the bourgeois order, as was formerly the case, but under the aegis of Soviet rule. Comrade Stalin has described this as a fact unexampled in history, but a fact nonetheless. It is a new process, never known before to history, and one that it could not know. It is a new phenomenon, one that has developed under the Soviet order, on the basis of the Soviet system, in the new social and political conditions where there is no exploitation or oppression. These are nations that have been revived by the conditions of the Soviet system. The culture being developed by these nations is – as is the case with all the nations of the Soviet Union – a culture national in form and socialist in content.

The experience of the construction of Soviet socialist society shows, therefore, that Socialism does not at all imply the immediate dying-off of nations, as many vulgarizers of Marxism would have had us believe, but the development to the full of the inner potentialities of nations on a basis quite different from that of the conditions of the bourgeois system.

The majesty of Soviet democracy is mirrored in the fact that previously-backward nationalities are being raised economically and culturally to the level of the more advanced ones. For the first time in the history of multinational states the central authority has resolutely and consistently carried through a system of measures aimed at achieving real equality among nations, thereby doing away with the previous economic, political and cultural backwardness of the formerly oppressed nations and nationalities, and raising them to the level of the advanced nations. In this regard, too, is there manifested the fundamental difference between Soviet democracy and bourgeois democracy.

Under capitalism the line is systematically pursued of keeping the oppressed nations backward, of artificially holding up their industrial and cultural development, of ruthlessly exploiting them. Under Soviet democracy a planned system of measures is operated, aimed at raising the formerly oppressed and backward peoples to the level of the advanced ones. It is hard to appraise fully the world-historic significance of this fact. The formerly oppressed nationalities have seen the practical application of the great emancipatory principles of Bolshevik policy in the sphere of the national question. Soviet democracy means that the national oppression that has existed for centuries has been replaced by the great amity among the peoples of the U.S.S.R., an amity that marks a new era in the development of inter-national relations.

The Russian people, said Comrade Stalin, “is the most outstanding of all the nations that constitute the Soviet Union.” As a consequence of the great part played by the Russian people in October 1917, and then during the war against the foreign interventionists and Whiteguards, and during the years of peaceful construction; as a consequence of the epoch-making role played by the Russian nation during the Great Patriotic War of 1941-1945, it earned general recognition among all the other nations of our country as the leading force of the Soviet Union.

Characterizing the bourgeois federations and diverse states that exist under capitalism, Comrade Stalin has pointed out that in the main they took shape as a result of violence and oppression, that the course of their development was marked by repeated acts of violence and oppression. Even the revolutionary French bourgeoisie of the end of the XVIII century, who in their Declaration of Rights of Man and of the Citizen proclaimed that all men are born equal and hence should enjoy equal rights – even they considered it necessary to record the point in the Constitution of 1791 that “the present Constitution does not apply to French colonies and possessions in Asia, Africa, and America, although they constitute part of the French Empire.” And such a federal state as the United States of America, which boasts of the freedom possessed by its states, took final shape not as a result of voluntary union at all, but of the application of numerous measures for the forcible consolidation of the Union, for the forcible incorporation of many states.

In 1803 the United States of America purchased Louisiana from France, in 1819 it purchased Florida from Spain, and in 1845, as a result of war with Mexico, forcibly incorporated Texas, and so on. All this has little in common with the voluntary union of states to which such loud references are made by the apologists of American democracy. James Bryce, the well-known authority on the American republic, once wrote that while the victory won by the North in the war of 1861-1865 was progressive in the sense that it did away with slavery, it was at the same time a warning against any attempt by the states to secede from the Union, so that it was not even considered necessary to introduce in the U.S.A. constitution clauses denying the right of the states to secede from the Union.

A fundamentally different principle on which a federal state is based – that of genuinely voluntary federation – is expressed in the Stalin Constitution. To enable the reader to understand the essence of socialist democracy, the great importance of the principles followed by the Bolshevik Party in the building of our multinational Soviet State, it is important to indicate the thesis developed by Comrade Stalin concerning the reservation of the right of the Union Republics freely to secede from the U.S.S.R. In his speech on the Constitution, where he rejected amendments the purpose of which was to delete from the Constitution the article dealing with this point, Comrade Stalin stated: “The U.S.S.R. is a voluntary union of Union Republics with equal rights. To delete from the Constitution the article providing for the right of free secession from the U.S.S.R. would be to violate the voluntary character of this union.”[††††††] As Comrade Stalin pointed out, there is not a single republic in our country that would want to secede from the U.S.S.R., but inasmuch as the U.S.S.R. is based on a voluntary union of the peoples, a clause is recorded in the Constitution stressing this voluntary character of the Union of Soviet Socialist Republics.

Comrade Stalin pointed out further that not only should formal proclamation be made of the right to secede from the Union, but matters should be so arranged that this right is not turned into an empty, meaningless scrap of paper. That is why one of the three qualifications for an Autonomous Republic to be transferred to the category of Union Republic is that it is situated along the country’s borders. Comrade Stalin said that “…the Republic concerned must be a border republic, not surrounded on all sides by U.S.S.R. territory. Why? Because since the Union Republics have the right to secede from the U.S.S.R., a republic, on becoming a Union Republic, must be in a position logically and actually to raise the question of secession from the U.S.S.R. And this question can be raised only by a republic which, say, borders on some foreign state, and, consequently, is not surrounded on all sides by U.S.S.R. territory.”[‡‡‡‡‡‡]

There is no republic in our country desirous of seceding from the U.S.S.R. Only as component parts of the U.S.S.R. have our national republics secured the conditions requisite for their development on an unparalleled scale. Only with the aid of the entire Union have the different republics risen to enormous heights and secured the most extensive facilities for their prosperous growth. The principles proclaimed in the Constitution regarding the voluntary character of the union and the equality of the rights possessed by the Union Republics are guaranteed by the conditions that actually exist for this voluntary union and enjoyment of equal rights.

Is a clearer expression required of the principles of socialist democracy embodied in the Stalin Constitution?

Only socialist democracy fully and thoroughly solves the problem of fraternal collaboration among nations in a single multinational Soviet State. It is only such a solution of the problem that has created the stability and steadfastness, the firmness and might which distinguish the Soviet multinational State.

The Tenth Session of the Supreme Soviet of the U.S.S.R., which took place from January 28 to February 1, 1944 – when the Patriotic War was at its height – adopted decisions of exceptionally great importance, which constituted a new advance in the development of our multinational Soviet Socialist State. The Session adopted laws for the establishment of military formations of the Union Republics, and in this connection for the transformation of the People’s Commissariat of Defence from an all-Union into a Union-Republican People’s Commissariat (now Ministry); and for the endowment of the Union Republics with the right to enter into direct relations with foreign powers and to conclude treaties with them; and in this connection for the transformation of the People’s Commissariat of Foreign Affairs from an all-Union into a Union-Republican People’s Commissariat (now Ministry). All this became possible and necessary as a result of the political, economic and cultural development of the Union Republics. These new achievements in the development of the Soviet State were, by decision of the Third Session of the Second Convocation of the Supreme Soviet of the U.S.S.R. held in 1947, embodied in the Stalin Constitution.

* * *

Such are the most important and characteristic features of Soviet socialist democracy. The strength and vitality of Soviet democracy have been tested by experience. A great and leading role has been played by Soviet democracy in the struggle against fascism. Now, in the post-war period, Soviet socialist democracy is in the van of all the progressive forces in the world waging the struggle against the reactionary elements, against the new warmongers, against those who wish to maintain and revive fascism. That is why Soviet socialist democracy meets with such sympathy, endorsement and admiration among all the progressive forces of the world.

Having emerged with honour from all the difficulties and trials of the Great Patriotic War, the Soviet people are now engaged in a self-sacrificing struggle to rehabilitate and further develop the economy of the U.S.S.R., to fulfill and overfulfill the new Stalin Five-Year Plan. One of the clearest indexes of the strength and vitality of Soviet socialist democracy is the fact that Soviet people, led by the Bolshevik Party, are making a reality of the task set by Stalin, namely, that of bringing about a rapid rise of the national economy.

PUBLISHER’S NOTE

This pamphlet is a translation of an essay published in the symposium Soviet Socialist Society prepared by the Institute of Philosophy of the Academy of Sciences of the U.S.S.R. and published by the Gospolitizdat, Moscow 1949.

 

[*] J. V. Stalin, Speech Delivered at an Election Meeting in the Stalin Election District, Moscow, February 9, 1946. Moscow 1946, p. 10.

[†] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXIII, p. 346.

[‡] V. I. Lenin, Selected Works, Two-Vol. ed., Vol. II, Moscow 1947, p. 535.

[§] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 551.

[**] V. I. Lenin, Collected Works, 3rd Russ. od., Vol. XXIII, p. 220.

[††] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXVI, p. 423.

[‡‡] K. Marx, The Eighteenth Brumaire of Louis Bonaparte, Moscow 1948, p. 34.

[§§] V. I. Lenin, Selected Works, Two-Vol. ed., Vol. II, Moscow 1947, p. 374.

[***] Ramsay Muir, How Britain Is Governed, p. 168.

[†††] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXIII, p. 293.

[‡‡‡] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 557.

[§§§] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXIII, p. 221.

[****] V. I. Lenin, Selected Works, Twelve-Vol. ed., Vol. VI, Moscow-Leningrad, p. 264.

[††††] J. V. Stalin, On the Great Patriotic War of the Soviet Union, Moscow 1940, p. 165.

[‡‡‡‡] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXII, p. 45.

[§§§§] V. I. Lenin, Selected Works, Twelve-Vol. ed., Vol. VII, Moscow-Leningrad, p. 231.

[*****] V. I. Lenin, Collected Works, 3rd Russ. ed., Vol. XXII, pp. 18-19.

[†††††] J. V. Stalin, Speech Delivered at an Election Meeting in the Stalin Election District, Moscow, February 9, 1946.Moscow 1946, p. 10.

[‡‡‡‡‡] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 438.

[§§§§§] V. I. Lenin, Marxism About the State, Russ. ed., Moscow 1934, p. 77.

[******] J. V. Stalin, On the Great Patriotic War of the Soviet Union, Moscow 1946, pp. 164-65.

[††††††] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 561.

[‡‡‡‡‡‡] J. V. Stalin, Problems of Leninism, Moscow 1947, p. 562.

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Communist Party of the Workers of France (PCOF): Our Position for the Second Round of the Presidential Elections

(Machine Translation from French)

The long campaign for the first round of the presidential elections ended with the qualification of E Macron and M Le Pen. Despite the strong injunction to go vote, abstention is 20%. In this figure, there are those who wanted to express their refusal of the system. This is the position that we have defended and implemented.

The gaps between the top four candidates are reduced: they get between 19.5 percent and 24 percent of the vote. This shows the narrowness of the electoral base of the two candidates that remain in the running.

The mass rejection of the representatives of the two parties that have governed for more than forty years, Fillon for the right and Hall for the PS, is one of the highlights of these results. The slap is particularly severe for the PS that has already exploded.

The media favorite, receiving supports for the oligarchy, E Macron, arrived at the top of the first round, in front of M Le Pen, who has the highest electoral score of the far right.

A significant number of voters wanted to translate, through voting for the candidate of France L’insoumise, JL Mélenchon, their opposition to neo-liberal politics and the PS.

This potential of resistance, such as expressed through the vote in favour of P. Poutou or N Artaud, as one who spoke for some in the ‘white’ vote or abstention, must engage in social struggles that have not ceased. Because the class struggle, at the national and international level, does not bend and doesn’t come to the calendar and election dates.

The second round promises to be a repetition of the call in 2002 to vote Chirac to block Le Pen: today, ‘it’s all behind Macron

The far right is a map of the oligarchy: map of the division of the labour movement and popular, of racism, of neoliberalism camouflaged under a speech of demagoguery social and nationalist, the politics of war.

Macron, the candidate displayed the oligarchy, the supporter of neoliberalism, of the uberisation of the society of European defence, NATO… is not a rampart on the far-right.

That is why, we refuse to bend to the injunction to the trailer of the Macron candidate and we call for abstention in the second round of the presidential elections.

These presidential elections, based on a customization with excess of political combat, will lead to the designation of the one who will manage the interests of french imperialism.

The urgency is to organize and to fight, to confront, to defend the interests of workers and popular, to combat the neoliberal policy, against the police state and the policy of war that Macron will amplify. To develop solidarity with the peoples struggling for their national and social emancipation.

That’s what our party will put forward, this first of may, through its watchword:

Against the reaction and the war, for a revolutionary break!

Paris, April 24, 2017

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

 

ICMLPO: Stop the warmongers! – The beating of war drum is getting louder and louder

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The beating of war drum is getting louder and louder.

NATO and US allies on the one hand, and Russia and China on the other, are steadfastly heading toward war. The threats of war are being expressed quite blatantly. What used to be “buffer zones”, have become militarized. The armies and navies of the imperialist are confronting each other in many region of the world: in Syria, around the Arab peninsula; in the South China Sea; in the Baltic region and in the Ukraine; and last, but not least, in the vast Arctic.

For imperialism, war is the “final solution” to the crisis and stagnation in which its system find itself. Plundering of raw material and grabbing of new market is insufficient. New and huge profit can be obtained through destruction, and subsequently by reconstruction in the regions devastated by war.

There is an increasing risk that many regional wars instigated by the imperialist powers, in particularly by the USA, may escalate to world war. In Europe, the level of confrontation and military build-up has escalated to a very dangerous level, especially with the reinforcement of the links between NATO and EU. The peoples of Europe are held in a grip between the imperialist bloc of NATO and imperialist Russia.

Missile and troops from NATO are now deployed on the Russian borders in Poland and the Baltic countries, highly increasing the tension and risk of war. NATO generals have stated that even a nuclear attack on Russia is “an option”.

The ICMLPO appeals to the people to oppose the warmongering policy, to put forward the slogan “Out of NATO”, with the perspective of the dissolution of NATO, to oppose the activity and expansion of this aggressive alliance. It is the high time to unmask the illusion that NATO has something to do with the defence of sovereign States. It is not a pact for peace, but a pact with the devil. NATO is in fact the greatest threat to the sovereignty of the peoples in Europe.

The workers, the youth and the peoples of Europe must raise their voice against the militarization of States and economies. We denounce the dictate of the aggressors and of the military-industrial monopolies. We reject to fight our brother and sisters on the other side of the borders. We warn our governments that if they choose the path of war, we will consider them, and not our brother and sister across the borders, as our enemy.

The upcoming NATO summit in Bruxelles will inaugurate their new headquarter. This is in itself a provocation towards the peoples of Europe, and will be met with anti-war manifestation.

We say:

  • No to NATO and all imperialist aggressors!
  • End to arms race, cut military spending, use the money for the needs of the people!
  • Withdrawal of all the troops sent abroad!
  • No to militarisation of the States!
  • The youth doesn’t want to be cannon fodder!
  • International solidarity – our enemies are not other workers and peoples but the warmongering governments in our own countries!

October, 2016

International Conference of Marxist-Leninist Parties and Organisations

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

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

Why?

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

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

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

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

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

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

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

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

Stop TTIP, CETA and TISA!

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

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

Michael Parenti: The Costs of Counterrevolution: Must We Ignore Imperialism?

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The following are excerpts from the book “The Sword and the Dollar: Imperialism, Revolution, and the Arms Race” by Michael Parenti, published by St. Martin’s Press, 1989.

The Costs of Counterrevolution

Throughout the 1980s, the counterrevolutionary mercenaries who have waged war against such countries as Nicaragua, Angola, and Mozambique, were described as “guerrillas.” In fact, they won little support from the people of those countries, which explains why they remained so utterly dependent upon aid from the United States and South Africa. In an attempt to destroy the revolutionary economy and thus increase popular distress and discontent, these counterrevolutionaries attacked farms, health workers, technicians, schools, and civilians. Unlike a guerrilla army that works with and draws support from the people, the counterrevolutionary mercenaries kidnap, rape, kill and in other ways terrorize the civilian population. These tactics have been termed “self-defeating,” but they have a logic symptomatic of the underlying class politics. Since the intent of the counterrevolutionaries is to destroy the revolution, and since the bulk of the people support the revolution, then the mercenaries target the people.

In Mozambique, for example, over a period of eight years the South African-financed rebels laid waste to croplands, reducing the nation’s cereal production enough to put almost 4 million people in danger of starvation. The rebels destroyed factories, rail and road links, and marketing posts, causing a sharp drop in Mozambique’s production and exports. They destroyed 40 percent of the rural schools and over 500 of the 1,222 rural health clinics built by the Marxist government. And they killed hundreds of unarmed men, women, and children. But they set up no “liberated” areas and introduced no program for the country; nor did they purport to have any ideology or social goals.

Likewise, the mercenary rebel force in Angola, financially supported throughout the 1980s by the apartheid regime in South Africa and looked favorably upon by the Reagan administration, devastated much of the Angolan economy, kidnapping and killing innocent civilians, displacing about 600,000 persons and causing widespread hunger and malnutrition. Assisted by White South African troops, the rebels destroyed at least half of Angola’s hospitals and clinics. White South African military forces, aided by jet fighters, engaged in direct combat on the side of the counterrevolutionaries. The rebel leader, Jonas Savimbi, offered no social program for Angola but was lavish in his praise of the apartheid rulers in Pretoria and critical of Black South African leaders.

So with the contra forces that repeatedly attacked Nicaragua from Honduras for some seven years. In all that time they were unable to secure a “liberated” zone nor any substantial support from the people. They represented a mercenary army that amounted to nothing much without US money-and nothing much with it, having failed to launch a significant military offensive for years at a time. Like other counterrevolutionary “guerrillas” they were quite good at trying to destabilize the existing system by hitting soft targets like schools and farm cooperatives and killing large numbers of civilians, including children. (While the US news media unfailingly reported that the Nicaraguans or Cubans had “Soviet-made weapons,” they said nothing about the American, British, and Israeli arms used by counterrevolutionaries to kill Angolans, Namibians, Black South Africans, Western Saharans, Nicaraguans, Guatemalans, and Salvadorans.)

Like counterrevolutionaries in other countries, the Nicaraguan contras put forth no economic innovations or social programs other than some vague slogans. As the New York Times reported, when asked about “the importance of political action in the insurgency” the contra leaders “did not seem to assign this element of revolutionary warfare a high priority.” They did not because they were not waging a “revolution” but a counterrevolution. What kind of a program can counterrevolutionaries present? If they publicize their real agenda, which is to open the country once more to the domination of foreign investors and rich owners, they would reveal their imperialist hand.

Like most of the Third World, Nicaragua during the Somoza dictatorship was one of imperialism’s ecological disasters, with its unrestricted industrial and agribusiness pollution and deforestation. Upon coming to power, the Sandinistas initiated rain forest and wildlife conservation measures and alternative energy programs. The new government also adopted methods of cutting pesticides to a minimum, prohibiting the use of the deadlier organochlorides commonly applied in other countries. Nicaragua’s environmental efforts stand in marked contrast to its neighboring states. But throughout the 1980s, the program was severely hampered by contra attacks that killed more than thirty employees of Nicaragua’s environmental and state forestry agencies, and destroyed agricultural centers and reclamation projects.

The US government is ready to accept just about anyone who emigrates from a Communist country. In contrast, the hundreds of millions of Third World refugees from capitalism, who would like to come to this country because the conditions of their lives are so hopeless, are not allowed to come in …

*

Must We Ignore Imperialism?

Woodrow Wilson, 1907

Since trade ignores national boundaries and the manufacturer insists on having the world as a market, the flag of his nation must follow him, and the doors of the nations which are closed against him must be battered down. Concessions obtained by financiers must be safeguarded by ministers of state, even if the sovereignty of unwilling nations be outraged in the process. Colonies must be obtained or planted, in order that no useful corner of the world may be overlooked or left unused.

Ronald Reagan

What I want to see above all else is that this country remains a country where someone can always be rich. That’s the thing we have that must be preserved.

Jeff McMahan

U.S. reasons for wanting to control the third world are to some extent circular. Thus third world resources are required in part to guarantee military production, and increased military production is required in part to maintain and expand U.S. control over third world resources …. Instrumental goals eventually come to be seen as ends in themselves. Initially the pursuit of overseas bases is justified by the need to maintain stability, defend friendly countries from communist aggression, and so on-in other words, to subjugate and control the third world; but eventually the need to establish and maintain overseas bases becomes one of the reasons for wanting to subjugate and control the third world.

Henry Kissinger, June 27, 1970 about Chile

I don’t see why we need to stand by and watch a country go Communist because of the irresponsibility of its own people.

*

Against Imperialism

The people who make US foreign policy are known to us – and they are well known to each other. Top policymakers and advisors are drawn predominantly from the major corporations and from policy groups like the Council on Foreign Relations, the Committee for Economic Development, the Trilateral Commission, the Business Roundtable, and the Business Council. Membership in these groups consists of financiers, business executives, and corporate lawyers. Some also have a sprinkling of foundation directors, news editors, university presidents, and academicians.

Most prominent is the Council on Foreign Relations (CFR). Incorporated in 1921, the CFR numbered among its founders big financiers such as John D. Rockefeller, Nelson Aldrich, and J. P. Morgan. Since World War II, CFR members have included David Rockefeller, chairman of Chase Manhattan Bank (and erstwhile CFR president); Allen Dulles, Wall Street lawyer and longtime director of the CIA; and, in the 1970s, all the directors of Morgan Guaranty Trust; nine directors of Banker’s Trust; five directors of Tri-Continental holding company; eight directors of Chase Manhattan; and directors from each of the following: Mellon National Bank, Bank of America, General Motors, Ford, Chrysler, Standard Oil of New Jersey, General Electric, General Dynamics, Union Carbide, IBM, AT&T, ITT, and the New York Times (a partial listing).

One member of the Kennedy administration, Arthur Schlesinger, Jr., described the decision-making establishment as “an arsenal of talent which had so long furnished a steady supply of always orthodox and often able people to Democratic as well as Republican administrations. President Kennedy’s secretary of state was Dean Rusk, president of the Rockefeller Foundation and member of the CFR; his secretary of defense was Robert McNamara, president of Ford Motor Company; his secretary of the treasury was C. Douglas Dillon, head of a prominent Wall Street banking firm and member of the CFR. Nixon’s secretary of state was Henry Kissinger, a Nelson Rockefeller protégé who also served as President Ford’s secretary of state. Ford appointed fourteen CFR members to his administration. Seventeen top members of Carter’s administration were participants of the Rockefeller-created Trilateral Commission, including Carter himself and Vice President Walter Mondale. Carter’s secretary of state was Cyrus Vance, Wall Street lawyer, director of several corporations, trustee of the Rockefeller Foundation, and member of the CFR.

Reagan’s first secretary of state was Alexander Haig, former general and aide to President Nixon, president of United Technologies, director of several corporations including Rockefeller’s Chase Manhattan Bank, and member of the CFR. Reagan’s next secretary of state was George Shultz, president of Bechtel Corporation, director of Morgan Guaranty Trust, director of the CFR, and advisor of the Committee for Economic Development (CED). Reagan’s secretary of defense was Caspar Weinberger, vice president of Bechtel, director of other large corporations, and member of the Trilateral Commission. The secretary of treasury and later chief of staff was Donald Regan, chief executive officer of Merrill, Lynch, trustee of the CED, member of the CFR and of the Business Roundtable. Reagan’s CIA director, William Casey, was director of the ExportImport Bank, head of the Securities and Exchange Commission under Nixon, and partner in a prominent Wall Street law firm. At least a dozen of Reagan’s top administrators and some thirty advisors were CFR members.

Members of groups like the Council on Foreign Relations and the Trilateral Commission have served in just about every top executive position, including most cabinet and subcabinet slots, and have at times virtually monopolized the membership of the National Security Council, the nation’s highest official policymaking body.’ The reader can decide whether they compose (1) a conspiratorial elite, (2) the politically active members of a ruling class, or (3) a selection of policy experts and specialists in the service of pluralistic democracy.

These policymakers are drawn from overlapping corporate circles and policy groups that have a capacity unmatched by any other interest groups in the United States to fill top government posts with persons from their ranks. While supposedly selected to serve in government because they are experts and specialists, they really are usually amateurs and “generalists.” Being president of a giant construction firm and director of a bank did not qualify George Shultz to be Nixon’s secretary of labor nor his secretary of the treasury. Nor did Shultz bring years of expert experience in foreign affairs to his subsequent position as Reagan’s secretary of state. But he did bring a proven capacity to serve well the common interests of corporate America.

Rather than acting as special-interest lobbies for particular firms, policy groups look after the class-wide concerns of the capitalist system. This is in keeping with the function of the capitalist state itself. While not indifferent to the fate of the overseas operations of particular US firms, the state’s primary task is to protect capitalism as a system, bolstering client states and opposing revolutionary or radically reformist ones.

Far from being powerless, the pressure of democratic opinion in this country and abroad has been about the only thing that has restrained US leaders from using nuclear weapons in Vietnam, and intervening with US forces in Angola, Nicaragua, and elsewhere. How best to pursue policies that lack popular support is a constant preoccupation of White House policymakers. President Reagan’s refusal to negotiate with the Soviets in the early 1980s provoked the largest peace demonstrations in the history of the United States. Eventually he had to offer an appearance of peace by agreeing to negotiate. To give this appearance credibility, he actually had to negotiate and even reluctantly arrive at unavoidable agreement on some issues, including the 1987 INF treaty.

Evidence of the importance of mass democratic opinion is found in the remarkable fact that the United States has not invaded Nicaragua. Even though the US had a firepower and striking force many times more powerful than the ones used in the previous eleven invasions of Nicaragua, and a president (Reagan) more eager than any previous president to invade, the invasion did not happen. Not because it would have been too costly in lives but because it would have been politically too costly. President Reagan would not have balked at killing tens of thousands of Nicaraguans and losing say 5,000 Americans to smash the Red Menace in Central America. When Marines were blown away in one afternoon in Lebanon, Reagan was ready to escalate his involvement in that country. Only the pressure of democratic forces in the USA and elsewhere caused him to leave Lebanon and refrain from invading Nicaragua. He did not have the political support to do otherwise. Invasion was politically too costly because it was militarily too costly even though logistically possible. It would have caused too much of an uproar at home and throughout Latin America and would have lost him, his party, and his policies I too much support.

The policies pursued by US leaders have delivered misfortune upon countless innocents, generating wrongs more horrendous than any they allegedly combat. The people of this country and other nations are becoming increasingly aware of this. The people know that nuclear weapons bring no security to anyone and that interventions on the side of privileged autocracies and reactionary governments bring no justice. They also seem to know that they pay most of the costs of the arms race and many of the costs of imperialism. From South Korea to South Africa, from Central America to the Western Sahara, from Europe to North America, people are fighting back, some because they have no choice, others because they would choose no other course but the one that leads to peace and justice.

Source

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

Marxist-Leninist Research Bureau: The Industrial Party Affair

The Industrial Party Trial.

The Industrial Party Trial.

The Formation of the ‘Industrial Party’ (1925-28)

At his trial in November 1930, Professor Leonid Ramzin* admitted that he had been the:

“. . ideological leader”;

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ‘Wreckers on Trial’; London; 1931; p. 39).

of a counter-revolutionary organisation called the “Industrial Party” (Prompartiya). He testified that the old engineering circles, from which the party had been formed, constituted:

“. . an aloof caste.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 6).

which was hostile to socialism:

“In their political views the old engineering circles . . . (were) completely alien to the ideology of the Communist Party. The old engineers were completely and firmly convinced of the necessity for a capitalist structure as the only base on which the productive forces of the country could develop successfully and steadily.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 7).

These anti-socialist engineers formed in 1925 an organisation called the “Engineering Centre,” the forerunner of the “Industrial Party,” as an instrument for organising sabotage and counter-revolution:

“During the first half of 1928, . . . the name ‘Industrial Party’ was adopted.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: ‘Le Proces des Industriels de Moscow’ (The Trial of the Moscow Industrialists); Paris; 1931; p. 65).

The Growth and Financing of,the Industrial Party (1928-30)

By mid-1929 the Industrial Party had some 2,000 members.
(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): op. cit.; p. 6).

The main source of finance for the Industrial Party was the “Russian Trade and Industrial Committee” (Torgprom), established in Paris in 1920-21. Torgrom was:

“An organisation abroad of former Russian industrialists. Its aim is, first, to defend the interests of the former Russian industrialists abroad; and, secondly, to secure the return of their former enterprises in the USSR, or at least to recover compensation for them.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 15).

“The regular financing of the Industrial Party from abroad began at the end of 1928. . . . From November 1928 to March 1930 about 1,600,000 roubles were received from abroad.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 17).

The Industrial Party:

“. . had its own men at key points”,

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 34).

in order to weaken the economy and arouse the dissatisfaction of the working people, the members of the Industrial Party:

“. . adopted the method of planned sabotage.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 13).

The Plans for Foreign Intervention (1928-30)

However, the Industrial Party realised that sabotage alone would not be sufficient to bring about successful counter-revolution, and so it relied primarily on foreign intervention:

“The ideal of intervention became defined clearly and sharply as the one means for the real achievement of a counter-revolutionary upheaval and the overthrow of the Soviet Government.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 13).

Thus, the Industrial Party secretly allied itself with:

“Official circles in France and, during the first period, England.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 18).

and also engaged in:

‘reconnaissance’,

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 37).

that is, in espionage.

The financing of the intervention was to be carried out mainly from French War Ministry funds, by the oil companies and, to a small extent by Torgprom:

“In regard to the financing of intervention, . . . most of the money was to come through the estimates of the French War Ministry, and then from oil circles. A small portion of these funds was to come from the Torgprom.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 27).

It was planned that the intervention force would be:

“. . a small but strong army of 600,000 to 800,000.”

(Leonid Ramzin: Evidence at Industrial Party Trial, in: Andrew Rothstein (Ed.): ibid.; p. 24).

composed of forces from Poland, Romania and the Baltic States. together with White Russian troops under Generals Pyotr Wrangel* and Pyotr Krasnov*:

“In the forefront were the military forces of Poland and Romania, and then came those of the Baltic States, the Wrangel Army and a small corps of Krasnov’s Cossacks.”

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 27).

France:

“. . expected to furnish training and general leadership of the military side of intervention.”

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 27).

while Britain:

“Was supposed to lend assistance through its fleet in the Black Sea and in the Gulf of Finland.”

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 28).

The plan of the campaign was to bring about a simultaneous attack on Moscow and Leningrad:

”The military plan provided for a simultaneous attack on Moscow and Leningrad. While the southern army was to move through the Western districts of the Ukraine, with its flank on the right bank Dnieper, and so on towards Moscow, the northern army, with the support of the naval and air fleet, was to move against Leningrad.”

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 29).

It was planned that the intervention forces would be under the overall command of the White Russian General Aleksandr Lukomsky*:

“The leader of the military intervention was to be General Lukomsky.”

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 21).

and that they would have to establish a military dictatorship:

“Everyone was agreed that a military dictatorship would be necessary at first.”

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 11).

As the price of their support of intervention, the participating states had put in demands for territorial concessions:

“Poland and Romania for the western territory of the Ukraine, the Deterding* group, and subsequently France for sweeping concessions in the Caucasus and . . . for the separation of the Ukraine and Georgia.”

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 30).

In his testimony, Ramzin described a meeting with representatives of Torgprom during a visit to Paris in October 1928. There he was told of meetings between leaders of Torgprom and French Prime Minister Raymond Poincare* and Foreign Minister Aristide Briand*. He was informed that Poincare :

“Expressed complete sympathy with the idea of organising intervention against the USSR, and stated that this question had already been turned over to the French General Staff to be worked out.”

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 21).

Continuing his evidence, Ramzin gave an account of meetings he had had in London with representatives of the British engineering firm of ‘Vickers’ and with the British intelligence agent Thomas Lawrence* (‘Lawrence of Arabia’).

(Leonid Ramzin: Evidence at Industrial Party Tribunal, in: Andrew Rothstein (Ed.): ibid.; p. 20, 26, 36).

The Trial (1930)

On 25 November 1930, the trial began in Moscow of the leaders of the Industrial Party, eight scientists, headed by Leonid Rainzin, former Director of the Thermo-Technical Institute and Professor at the Moscow Technical High School, They were charged with espionage and treason.

The trial was held in public, except for one brief session. The Presiding Judge was Andrey Vyshinsky* and the prosecution was headed by the Public Prosecutor of the RSFSR, Nikolay Kryenko*.

All the defendants pleaded guilty to the charges.

Ramzin testified:

“I unreservedly admit my guilt. . . . I can only succeed in mitigating my guilt by frank and truthful testimony and by sincerely admitting my crimes and mistakes.”

(Leonid Ramzin, in: Andrew Rothstein (Ed.): ibid.; p. 5-6).

The trial ended on 7 December 1930, when all defendants were found guilty. Five of the defendants, including Ramzin, were sentenced to death, the other three to ten years’ imprisonment. (Andrew Rothstein (Ed.) ibid.; p. 209-10).

On 8 December the Presidium of the Central Executive Committee of the Soviet Union commuted the death sentences to ten years’ imprisonment, and reduced the terms of imprisonment imposed on the other defendants to eight years.
(Andrew Rothstein (Ed.): ibid.; p. 212).

In prison, Ramzin was provided with facilities to proceed with his scientific work on boiler design:

“After the trial, he (Ramzin — Ed.) was set to work in prison on boiler construction. Ramzin’s re-employment in penal servitude was not an isolated case.”

(Robert C. Tucker: ‘Stalin in Power: The Revolution from above: 1928-1941’; New York; 1990; p. 100).

International Reactions (1930)

On 24 November 1930, Torgprom issued a statement denying any connection with the accused persons. However, its declaration of innocence was

“somewhat weakened”;

(‘New York Times’, 7 December 1930: Section III, p. 3).

by the assertion in the statement that it would:

“. . continue untiringly its struggle against the Soviet Government. . . . and will continue to prepare for the future emancipation of the Fatherland.”

(Torgprom: Statement of 24 November 1930, in: Andrew Rothstein (Ed.): op. cit.; p. 112).

On 27 November:

“Both former Premier Poincare and Foreign Minister Briand…issued official contradictions of statements made by the Russian Professor Ramzin during his trial in Moscow.”

(‘New York Times’, 27 November 1930; p. 22).

On 28 November the ‘Times’ reported that one of the persons with whom Ramzin had claimed to have had discussions in Paris in 1928, Ryabushinsky, had in fact died some years earlier in France, where he had been:

“. . buried on June 19, 1924.”

(‘Times’, 28 November 1930; p. 16).

However, on 30 November it was revealed in court in Moscow that the Riabushinsky who had died in 1924 was Pavel Riabushinsky, while the Riabushinsky referred to in Ramzin’s testimony was his brother Vladimir, an anti-Soviet newspaper article by whom (dated July 1930) was submitted to the Court in evidence. (Andrew Rothstein (Ed.): op. cit.; p. 107-09).

In general, the British and French press dismissed both the charges and the trial as:

“farcical”;

(‘Times’, 14 November 1930; p. 14).

“BRITISH CALL TRIAL BY REDS A FRAME-UP.”
(‘New York Times’, 29 November 1930; p. 9).

although some left-wing journalists were more honest:

“There was no honest observer, even an enemy of the Soviet Union, who would not reject the suggestion of a ‘staged’ trial as a foolish piece of malice. . . . They (the defendants — Ed.) were guilty and they knew it.”

(Walter H. Holmes: ‘The Wreckers exposed in the Trial ‘of the Counter-Revolutionary Industrial Party’; London; 1931; P. 31 7).

and the more reputable American newspapers – no Americans were involved in the case! – paid tribute to the skill of the prosecutor:

“Mr. Krylenko led them subtly from one admission to another.”

(‘New York Times’, 29 November 1930; p. 9).

and accepted the case against the defendants as proved:

“With the abandonment of NEP (New Economic Policy — Ed.) they took to treason to save their ideals and themselves.”

(‘New York Times’, 29 November 1930; p. 9).

“The testimony is impressive by the sheer weight and mass of detail, and there seems little doubt that the conspiracy, as far as its intent and activities and its connections with the powerful emigre Industrial Union in Paris is concerned, was high-placed, widespread and dangerous.

It is more than probable . . that the conspirators gave valuable information to foreign military espionage services about the Red Army, chemical and munitions factories, and the Soviet air force.”

(‘New York Times’, 30 November 1930; Section III; p. 3).

“To this correspondent, it sounded real.”

(‘New York Times’, 3 December 1930; p. 17).

“That documents once existed might be gathered from the haste of the emigree press, when the indictment was published, to suggest that the charges would be supported by a mass of ‘forged documents’. That none were produced – because, as N. V. Krylenko, the prosecutor, said: ‘The accused were very cautious and destroyed them in time’ – seems to contradict the emigre assertion that the confessions were extracted by torture, since it would be far easier to force a man to accept a faked paper than to make him continue for ten days to swear his own life away by detailed admissions. .

Professor L. K. Ramzin’s speech . . . was full proof of the baselessness of the assertion that he spoke under pressure. . . .

No man could speak words like these under pressure of the ‘third degree’ alone, and they rang so true that eyes were wet among the spectators.”

(‘New York Times’, 7 December 1930; p. 20).

The view that the prosecution had proved its case:

“…is not confined to Communists alone, but is believed almost integrally by the vast majority of the Russian people. .The foreign colony here (in Moscow – Ed..) is generally inclined to think that the prosecution succeeded in building up a pretty convincing foundation. . .

(‘New York Times’, 7 December 1930: Section III; p. 3).

Aftermath

Two years later, in 1932, Ramzin was amnestied:

“. . restored to office and to favour, and even awarded an Order.”

(Robert Conquest: ‘The Great Terror’; Harmondsworth; 1971; p. 225).

“A governmental decree amnestied Ramzin and eight other fellow convicts in the Industrial Party trial for their successful work on boiler design while in prison. Along with the decree was printed a letter of thanks for clemency, in which Ramzin and three others took note of the ‘solicitude for man that the NKVD had shown during their .. . . . imprisonment by providing all the conditions for continued scientific work.”

(Robert C. Tucker: op. cit.; p. 322).

“Subsequently, Professor Ramzin completed a number of valuable technical projects. . Ramzin received the State Prize of the USSR in 1943. He was also awarded the Order of Lenin and the Order of the Red Banner of Labour.”

(‘Great Soviet Encyclopedia’, Volume 21; New York; 1978; p. 134, 486).

Published by: THE MARXIST-LENINIST RESEARCH BUREAU, Ilford, Essex,

BIOGRAPHICAL NOTES

BRIAND, Aristide, French lawyer and politician (1862-1932); expelled from Socialist Party (1906); Minister of Education (1906-09); Premier 11 times between 1909 and 1931, most notably 1909-11, 1913, 1915-17 and 1921-22); Minister of Foreign Affairs in 14 successive governments between 1915 and 1931, most notably 1915-17, 1921-22 and 1925-31.

DETERDING, Henri W. A., Dutch oil magnate (1866-1939); Managing Director, Dutch Petroleum Co. (1902-07); Managing Director Royal Dutch Shell group (1907-36); retired (1937); died in Switzerland (1938).

KRASNOV, Pyotr N., Russian military officer (1869-1947); appointed by Kerensky to command troops in Petrograd sent to fight Bolsheviks (1917); to Germany (1919); organised Russian prisoners-of-war into army to fight Soviet forces (1941-45); tried for and found guilty of treason, sentenced to death and executed (1947).

KRYLENKO, Nikolay V., Soviet revisionist lawyer (1885-1938); RSFSR State Prosecutor (1918-31); RSFSR People’s Commissar of Justice (1931-36); USSR People’s Commissar of Justice (1936-38); arrested, tried for and found guilty of treason (1936); died in imprisonment (1938).

LAWRENCE, Thomas E., British soldier and intelligence officer (1883-1935); intelligence officer in North Africa (1914-16); adviser on Arab affairs to Colonial Office (1921-22); in Royal Air Force (1922-35); killed in motor-cycle accident (1935).

LUKOMSKY, Aleksandr S., Russian military officer (1868-1939); arrested by Provisional Government (1917); escaped from prison and fled with Kornilov (1917); Chief of Staff, White Volunteer Army (1918-19); to Constantinople as representative of Wrangel on Allied Council (1920); died in Paris (1939).

POINCARE, Raymond N. L., French politician (1860-1934); Minister of Education (1893, 1895); Minister of Finance (1894, 1906); Senator (1903); Premier (1911-13, 1922-24, 1926-29); President (1913-20).

RAMZIN, Leonid K., Soviet revisionist engineer (1887-1948); Professor, Moscow Higher Technical School (1920-21); Director, All-Union Heat Engineering Institute (1921-30); arrested, tried for and found guilty of espionage and treason (1930); imprisoned (1930-32); amnestied (1932); Professor, Moscow Power Engineering Institute (1944-48).

VYSHINSKY, Andrei I., Soviet Marxist-Leninist lawyer, diplomat and politician (1993-1954); Professor of Criminal Law, Moscow State Ijniversity (1923-25); Rector, Moscow State University (1925-28); RSFSR Public Prosecutor and People’s Commissaar of Justice (1939-33); USSR Public Prosecutor (1935-39); USSR Deputy Foreign Minister (1940-49, 1953); USSR Permanent Representative at UN (1945-49, 1953-54); Deputy Premier (1953); died in New York (1954).

WRANGEL, Pyotr N., Baron, Russian military officer (1878-1928); appointed commander, ~.Thite Russian armed forces (1917); commander-in-chief (1920); evacuated to Constantinople (1929); in exile in Western Europe (1920-28); died in Brussels (1928).

BIBLIOGRAPHY

Chamberlin, William H.: ‘Russia’s Iron Age’; London; 1935.
Conquest, Robert: ‘The Great Terror; Stalin’s Purge of the Thirties’; Harmondsworth; 1871.
Fischer, Louis: ‘Machines and Men in Russia’; New York; 1932.
Holmes, Walter H.: ‘The Wreckers exposed in the Trial of the Counter-Revolutionary Industrial Party’; London; 1930.
Krylenko, Nikolay: ‘The Results of the “Industrial Party” Trial’; Moscow; 1931.
Rothstein, Andrew (Ed.): ‘Wreckers on Trial’; London; 1931.
Scheffer, Paul: ‘Seven Years in Soviet Russia’; London; 1931.
Tucker, Robert C.: ‘Stalin in Power: The Revolution from above: 1928-1941’; New York; 1990.
— : ‘Le proces des industriels de Moscou’ (The Trial of the Moscow Industrialists); Paris; 1931.
‘Great Soviet Encyclopedia’, Volume 21; New York; 1978.

‘New York Times
‘Times’.

Source

ICMLPO: Resolution of Solidarity with the People of Haiti

logo_mundo-copia

By decision of the Security Council of the United Nations, Haiti has been militarily occupied by MINUSTAH [United Nations Stabilization Mission in Haiti] since June 1, 2004.

This occupation is taking place under the excuse that it is a humanitarian mission that aims to “stabilize the country,” but it is actually trying to prevent the Haitian people from exercising their sovereignty and their right to self-determination.

After 10 years of occupation Haiti is in a serious political and institutional situation, with a sharp decline in democratic rights and a permanent state of violent repression of popular demonstrations for social, economic and political demands.

MINUSTAH also guarantees the entry of capital from multinational enterprises that are taking over strategic areas of the economy, such as mega-mining, luxury tourism, agro-exports and maquiladoras.

The United States, France and Canada are leading the strategic intelligence and planning of the occupation, and what is most unfortunate is that Latin American governments that claim to be democratic, such as Argentina, Brazil, Bolivia, Chile, Ecuador and El Salvador maintain occupation troops over this fraternal country and people.

Most of the Haitian people, 89% according to a survey, reject the occupation and demand that it be immediately ended, and they are systematically carrying out demonstrations.

The International Conference of Marxist-Leninist Parties and Organizations supports the people of Haiti in this demand and calls on its members and the peoples of Latin America to express militant solidarity with this people, which began the struggle for independence from European colonialism, especially of France, in the Americas.

The ICMLPO will develop a campaign of solidarity with Haiti in coordination with the revolutionary organizations in that country, on the occasion of the 211 anniversary of the independence of that fraternal people.

20th Plenary of the ICMLPO

Communist Party of Benin
Revolutionary Communist Party – Brazil
Revolutionary Communist Party of Volta (Burkina Faso)
Communist Party of Colombia (Marxist Leninist)
Workers’ Communist Party of Denmark
Communist Party of Labor of the Dominican Republic
Marxist-Leninist Communist Party of Ecuador
Communist Party of the Workers of France
Organization for the Construction of the Communist Workers’ Party of Germany
Movement for the Reorganization of the KKE (1918-1955) Greece
Revolutionary Democracy Organization of India
Party of Labor of Iran (Toufan)
Communist Platform of Italy
Communist Party of Mexico (Marxist-Leninist)
Democratic Way of Morocco
Workers Front of Pakistan
Peruvian Communist Party (Marxist-Leninist)
Communist Party of Spain (Marxist-Leninist)
Workers’ Party of Tunisia
Party of Labor of Turkey
Marxist-Leninist Communist Party of Venezuela

Turkey, November 2014

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ICMLPO: Support the resistance in Kobane, support the liberation struggle of the peoples

MLKP fighters in the Kobane resistance

MLKP fighters in the Kobane resistance

Resolution adopted at the plenary session of the International Conference of Marxist-Leninist Parties and Organizations

The sharpening of the Syrian conflict, driven by the reactionary forces in the region, particularly Turkey, Saudi Arabia and Qatar, under the supervision and coordination of the United States and French imperialists, is part of the political strategy to redesign the Middle East.

Turkey not only wants to lead Sunni Islam, reviving its neo-Ottoman dreams, but to prevent the self-determination of the Kurds in Rojava (the part of Kurdistan in Syria), because they play an important role as a reference for the Kurds in Turkey on their way to achieving national self-determination.

However, given the exclusiveness with which the US has acted in its interventionist policy, the opposition that it put together (the Coalition of Opposition and Revolutionary Forces of Syria and its armed wing the Free Syrian Army) has lost its influence and has left it to the radical Islamist gangs such as Al Qaeda.

The sharpening of inter-imperialist contradictions surrounding the conflict in Syria have created favorable conditions for the struggle of the Kurdish people, who have always been under the combined pressure of regional reactionary groups and the imperialists to prevent their self-determination and their developing autonomous governments in Rojava .

The Turkish Government perceives as a threat the existence of the administrations built by the Kurds in Rojava under the leadership of the Democratic Union Party, PYD, in collaboration with other peoples and religious groups. It also considers it difficult to impose its plan based on negotiations with Öcalan, the leader of the Kurdistan Workers’ Party, PKK. Therefore it has supported in all forms the Islamic State and Al Nusra (Front for the Victory of the People of Greater Syria). The great resistance of the Kurdish people and the solidarity all over the world gave Kobane an important significance for all oppressed peoples. The resistance in Kobane is growing and developing the hope of all oppressed peoples for a secular democratic future under the threat of the brutality of the Islamic State and religious fanaticism used by the reactionaries in that region and the imperialists.

We, the members of the International Conference of Marxist-Leninist Parties and Organizations (ICMLPO) support the liberation struggle of oppressed peoples and the resistance in Kobane. We oppose the imperialist interventionist policies in the Middle East and other regions of the world.

To defend the struggle for self-determination of the Kurdish people, the Palestinian people and all the oppressed peoples is the task of the working class and all peoples of the world.

Turkey, November 2014

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Vietnamese Revolutionary Art

This article was published by Alliance (Marxist-Leninist) as part of the publication Alliance, issue #53, “Aesthetics and Revolution – Essays and Talks.

Introduction

Western Artists and revolutionaries, are familiar with the socialist realist traditions of the USSR, Albania and of China. They also have a deep affection and respect for revolutionary painting from the Spanish Civil War, and from the South American continent especially from Mexico and Cuba. Curiously, art arising from the heroic struggles of the Vietnamese peoples, is much less well known. This is a shame, since the long war of national liberation, resulted in a plethora of great art.

Ho Chi Minh’s shrewd and insightful leadership of the Vietnamese national bourgeois liberation struggle, built a successful United Front. This was dependent upon the recognition that “many currents” would help move Vietnam into independence. A striking example of this viewpoint, is Ho Chi Minh’s view of Confucius, Jesus and Marx as “close friends”:

“The teachings of Confucius have a strong point, i.e., self-improvement of personal virtue. Jesus’ Bible has a strong point, i.e., noble altruism. Marxism has a strong point, i.e. a dialectical working method. Ton Dat Tien’s teaching has a strong point, i.e.Fe; their policies are suited to the conditions in our country, Did Confucius, Jesus, Marx, and Ton Dat Tien share common points? Yes. They all pursued a way to bring happiness to human beings and benefit to society. If they were all alive today, and if they were grouped together, I believe that they would live together in harmony like close friends. I try to become their pupil.“

Ho Chi Minh 1949. Plaque in Ho Chi Minh Museum, July 2004.

With this “broad church” philosophy, Ho Chi Minh succeeded in welding such a powerful anti-imperialist front. Unsurprisingly even the art in the clearly revolutionary phases of this broad front, also reflects a broad range of styles, and even at times of contents. Perhaps this is not surprising, since the Indochinese dominant French imperialism had already stimulated interest in the French art movements.

This article outlines and illustrates some developments in visual arts over the modern era. We apologise that it cannot be anything more than a very brief introduction.

A short background to the traditional arts, showing their legacy to the modern era, may be helpful.

Ancient Vietnamese Art

Naturally, the art history of the Vietnamese peoples is commensurate with their ancient story. The traditional arts in Vietnam faced the ravages of wars and little other than architectural edifices, and some sculptures and pottery, now exists. This shows the mark of a tension between external influences – Chinese and Indian – and more ‘native’ royalty sponsored arts. Largely it was the Cham dynasty that was heavily influenced by Indian art, and remaining sculptures show remarkable similarity.

Another major cultural import was Buddhism, via India directly, but also via South China. Buddhism has left a long lasting artistic and intellectual legacy in the many temples and pagodas that still survive in virtually every village. All these external influences were absorbed, such that by the 10th –11th centuries, the dominant artistic expressions relied upon Chinese Han traditions.

This absorption can be vividly seen in architecture, both in construction styles, and in intellectual legacy. This is vividly exemplified by the Temple of Literature founded in the 11th century. As the official tour plaque says of this shrine to Confucius, his four disciples and the ten learned ones:

“The Temple of Literature was the biggest centre in the country in feudal times, contributing to the training of thousands of scholars for the nation. It was worthy of being called the First University.”

Plaque, Temple of Literature, Hanoi July 2004.

It should not surprise that this plaque lauds Confucius (551-479 BC — Wade-Giles K’ung-fu-tzu or Pinyin Kongfuzi). Although Confucius is regarded as a reactionary in the current era, his contribution to welding a state in China is not challenged. And above all Ho Chi Minh was a dedicated nationalist, whose first mandate was to recognise important steps in the development of Vietnam into a modern, strong, independent and united nation, bridging the so-called three kys (parts of Vietnam).

The existing legacy that we are aware of from Vietnamese arts rests primarily upon porcelains and ceramics, sculpture, architecture, and folk-art traditions. Of these a large mystical non-realist tradition was dominant, incorporating dragons and mythical beings. But they did nonetheless develop realist themes amidst the myths. So even the depictions of the Buddha show a real human shape and a real human expression [Plate 1]. This version of the Bhudda shows him starving but peaceful in meditation.

Notable in these statues is the covering of the wood, with several layers of lacquer [See below].

Plate 1: Statue of Sakyamuni on A Snow Mountain 1794; Height 137 cm

SakyamuniFrom:
Editor: Cao Trong Thiem, “Bao Tang My Thuat Viet Nam”;
Vietnam Fine Arts Museum; nd; p.43

Given the ordinary peasants’ tendency to reduce all pretensions to an earthy reality, folk art usually took an explicitly realist form. The folk art illustrated life’s vagaries with a number of human motifs, as can be seen in the wood-cut traditions of Dong Ho village in Ha Bac Province [Plate 32]. This tradition was to re-surface with the development of poster art in the national revolutionary period.

Plate 2: Catching Coconuts (paper wood-cut print);
Cao Truong Theim; Ibid; p.51

Catchign Coconuts

Many of these techniques as developed over ancient times, left reservoirs of skills that were to find a new use in an entirely different set of traditions emanating from Western art and from the traditions of Socialist Realism. The ancient arts will not be further discussed here.

We will now focus, on the visual arts over the modern era.

Beginnings of Western Type Painting in Vietnam

Under French colonial domination at the turn of hte 19th – 20th centuries, Indochinese intellectuals were drawn to French and Western art movement. This was fueled by the setting up of hte Indochinese Art Academy by a Frenchman – Victor Tardieu – in 1925.

This fostered new technical skills and vocabulary, shortly to be put to profound uses by thw revolutionary artists in the era 1935-1970.

As the Vietnam Fine Arts Academy says:

“Tardieu rendered great service by laying the foundations for Vietnamese modern Fine Arts.“

Editor: Cao Trong Thiem, “Bao Tang My Thuat Viet Nam”; Vietnam Fine Arts Museum; nd; p.25.

Certainly such a strong Western external art influence was also present in the USSR before the socialist revolution.

It was perhaps somewhat less evident in the Chinese national revolution, or in Albanian art. In China, such influences were transmitted in Shanghai, to artists such as Xu Beihong (1895-1953) who went to the Ecole Nationale Superieur des Beaux Arts in Paris [See Clarke David; Modern Chinese Art’; Hong Kong; 2000; p.18]. And of course Chinese developments in modern art and socialist realism, were spurred on by Lu Xun and his espousal of the wood-cut.

But Western art influence was much more immediately influential in Vietnam.

In Vietnam, the earliest tangible expression of this Western influence realism was by artists such as Le Huy Mien [1873-1943; ‘Making comments on literary work”; 1898] [See Plate 3], and Trang Tran Phenh (‘Phagm Ngu Lao’, 1923).

The former depicts scholars debating merits of literary works, a theme not dissimilar from that of the traditional Chinese inspired Vietnamese artists. But the literature being debated now was slowly becoming more likely to do with modern liberation themes, than of poems on the moon.

Plate 3: Le Huy Mien:
‘Making Comments on a Literary Work’;
Cao Trong Thiem Ibid; p, 56

HuyMien

While these pioneers utilised the Western medium of oil paints, they restricted their content to local themes, expressed in the highest form of a bourgeois critical realism. By the 1930’s however, the content as well as style, of many painters had become almost identical to the most conventional of the French Impressionist schools such as Renoir. “Little Thuy” (1943) by Tran Van Can (1910-1994) for instance [p.75] [See plate 4], or “Japanese Young Girl” 1942, by Luong Xuan Nhi (1914-) [Plate 5] are clearly overtly influenced by Impressionism.

And this type of content largely came to predominate.

Plate 4: Tran Can Can
‘Little Thuy’;
Cao Trong Thiem Ibid; p. 74

Tran Van Can

Plate 5: Luong Xuan Nhi:
‘Japanese Young Girl’;
Cao Trong Thiem Ibid; p. 77

Luong Xuan Nhi

Residuals of ancient arts were now more found in the mediums used, rather than the contents or subject matter. But if the artists persisted in using the older materials, this had an effect on the subject choice. So artists attracted to old art forms such as painting on silks, rendered beautiful images of life such as Nguyen Phan Chanh’s [1892-1984] “Going to the Rice Fields” (1937) [See plate 6].

Plate 6: Nguyen Phan Chanh:
‘Going to the Rice Fields’;
Cao Trong Thiem Ibid; p. 58

RiceFields

With the later revolutionary influences, Nguyen Phan Chanh, persisted in this art form, making such vivid depictions of real life as “Team of Rattan Weavers” (1960) [See plate 7] and “A Good Harvest Meal” (1960) [p. 59].

Plate 7: Nguyen Phan Chanh:
‘Going to the Rice Fields’;
Cao Trong Thiem Ibid; p. 58

RattanWeavers

This tradition lasted long into the revolutionary period as the dates show. It also was linked to another tradition, that of wood-cuts which spawned in the revolutionary era, the revolutionary propagandist prints.

Perhaps a specialty of Vietnamese traditional arts was however lacquer painting.
As noted above, statuary and sculpture was often coated in a several layers of lacquer. This is a resin extracted from cuts on the bark of a common Vietnamese tree called ca y son (La: Rhus succedanea), which has is collected in total darkness lest it becomes itself dark (Catherine Noppe & Jean Francois Hubert ‘Art of Vietnam’; New York; 2003). When applied by the artist, it gives a special luster to the painted material – usually a wood – that acts as a vivid light. This light can be burnished with various pigments, into several different colours according to the pigment used, but the most common are golds, reds and greens. Each layer needs sanding down, before a new layer can be added, meaning considerable labour. The quality of lacquer derives from the number of coats, the manner in which the patterns can shine out and the expertise of sanding of the surface, which allows under layers to appear as a bas- relief.
An early exponent of the fusion of traditional form with more modern content was Nguyen Gia Tria (1908-1993).

His screen “In the Garden”, consists of 8 panels that show on one side a profusion of stylised banana and palm leaves. The obverse, consistent with the genre of French painting influences discussed, has a series of pretty, languid women redolent of Impressionist male fantasies. It is undoubtedly striking, but remains a purely decorative piece. Perhaps his ‘Clumps of bamboo in the countryside (1939) shows him at both his technical and content best, showing the florid jungle surrounding peasant on a boat passage [Plate 8].

Plate 8: Nguyen Gia Tria:
‘Clumps of Bamboo in the Countryside’;
Cao Trong Thiem Ibid; p. 86

Nguyen Gia Tri

That Nguyen Gia Tria wished to be linked to a more nationalist stream is evident since he professed that he:

“wished to drop his art studies as he felt all his teachers should be Viertnamese. Tardiese persuaded him to stay”;
Noppe & Hubert Ibid; p. 208.

Artistic Currents during the anti-imperialist struggles

It was onto this background, that the experiences of the anti-colonial liberation struggle led a new generation of artists into uncharted areas. Influenced by a stream of aesthetic thought from bourgeois liberalism through to socialist realism, they were largely solidly realist. Many of the artists of the Fine Arts Academy decamped, and taught at “Jungle Schools”:

“The first wave of national opposition against the French rule between 1946 and 1954 attracted a good number of Hanoi Fine Arts graduates who went and taught at the “Jungle School” in Viet Bac. . A natural consequence of the shutdown in the wake of the Japanese crackdown on March 31 1954. Out in the jungle you could still sense the war, but you also felt the power of nature and the cultural wealth of ethnic minorities.”
Noppe & Hubert Ibid; p.212-3

Impressively stirring content was drawn from the Indochinese liberation struggles, and often was grafted onto traditional forms, primarily of lacquer.
The results are far from simple propagandist art.

Marxist-Leninist aesthetics point out that realist content material, is the most effective art to stir the masses.

Too little attention has been paid to the differences between good realist art, and simple propaganda. Marxist-Leninists have long held that the best art both moves people, but is not ‘tendentious’, in the words of Engels. Alliance has empasised the distinction between “propagandist art”, “state sponsored art”, and the best of socialist art (Memorial to Bill Bland – see Table of Contents Alliance 53).

Much of the best of the art stemming from the Vietnamese national liberation struggle is by any standard, a high art.

Clearly tensions of style remained, and a degree of abstractionism was not uncommon, with some abstract paintings throughout the revolutionary era.
But there is little doubt that the predominant weight of paintings over the period from 1945 to the 1980’s, was realist in content.

Naturally the turns of the long war led to their own effects on the artistic climate. Hence the victory of the national liberation struggle at Dien Ben Phu decisively turned mere pastiches of French impressionists into an expression of un-welcome and hostile anti-patriotism.

Sections of the intelligentsia and artists were unwilling to contemplate any further struggle, and any possible move into socialism; and became disillusioned.
As a hostile art history by Noppe and Hubert puts it, the battle of Dien Bien Phu marked a turning point:. It was here that the Vietnamese decisively defeated French imperialism, led by General Giap and Ho Chi Minh. Some artists chose Western abstractionism at this stage:

“Yet if artists (in the Jungle Academy –ed) were first and foremost observers, they were also fighters in an unequal struggle. Within a handful of years patriotic fervour gave way to disenchantment. Bui Xuan Phai was among the first who went back to the city in 1952”.
Noppe & Hubert; Ibid; p. 212.

“A radical change of situation came with the crushing defeat of the French at Dien Bien Phu in May 1954… From then on socialist realism became an imperative.. painters who had joined independent fighters from 1946 and depicted courageous and unpretentious freedom fighters enjoyed the full support of the rural population, suddenly found them gagged by socialist realism only a decade later. Such as Bui Xuan Phoi, Duong Bich Lien, Nguyen Sang, and Nguyen Tu Nghien”.
Noppe & Hubert Ibid; p. 113.

It is not surprising that an Art Forum was established that expressed the aspirations of national liberation, and expected its’ artists to assist in this expression.

It is equally un-surprising that the overt failure of the revolution to move to the socialist path, or the second stage of the Leninist revolution, would lead to the firm and ever stronger enthronement of capital. This was established openly by the so-called Doi-Moi reforms (See Alliance 27: On Ho Chi Minh and Vietnamese Revisionism – at http://ml-review.ca/aml/China/ALLIANCE27HOCHIMINH.htm).

These developments led to a resurgence of abstractionism and vague, moody Vietnamese beautiful ladies in art:

“The Art forum set up headed by Thai Ba Van set the baseline for modern art.. and helped stifle artistic expression, although doi-moi reforms introduced a certain amount of leeway of 1985… All Vietnamese artists felt the burden of censorship”.
Noppe & Hubert; Ibid; p. 219.

Examples of Works in the National Liberation Struggle

To see the currents at play, we should examine the paintings over this period.

In the make-over of traditional forms, some of the lacquer work is very striking. See for example “Recalling One Afternoon in Tay Bac” 1922, by Phan Ke An (b 1923). [Plate 9] see p.103.

Beautiful sun burnished green mountains form a background to a small troop of soldiers crossing a ridge. Here both content and form are perfectly matched. The ‘everyday’ aspect of a troop of soldiers is part of the scenery.

Plate 9: Phan Ke An:
‘Recalling One Fine afternoon in Tay Bac’;
Cao Trong Thiem Ibid; p. 103

PhanKeAn

In “Ham Rong Bridge”(1976) by Tran Oanh (b.1937) [Plate 10], workers are shown against an impressive background of the river in brilliant reds and golds.

Plate 10: Tranh Oanh
‘Ham Rong Bridge’;
Unpublished Source.

TranOanh

There is little doubt that the use of such heavy reds in this late painting, is an allegory for socialism. This use of the red and gold lacquer is made even more explicit in such paintings as the large and impressive 4 panels of the “The Nghe Tinh Soviet” of 1958 by six painters led by Nguyen Duc Nung [Plate 11].

Plate 11: Nguyen Dic Nung, Tran Dinh Tho, Pham Van Don, Nguyen Van Ty, Huynh Van Thuan, Nguyen Sy Ngoc:
“Soviet in the Provinces of Nghe An and Ha Tinh”
Cao Trong Thiem Ibid; p.109

NgheAnSoviet

Even some of the abstractionist elements during this period, are sometimes very powerful. Such as for example “From Darkness (1982) by Le Quoc Loc (1918-1987) [Plate 12] (p.102). Surrounding blocks of black and gold shapes of lacquer, depict houses in the night. In one off-centre house, placed high on the wood surface, a gold and red light brightly lights a central room. The red light is the hammer and sickle on one flag, with a second flag composed of a gold five-pointed star on a red background. In front of them are black silhouettes of men and women workers saluting the flag.

Plate 12: Le Quoc Loc
“From Darkness” ;
Cao Trong Thiem Ibid; p.109

LeQuocLoc

Another impressive lacquer painting, that takes as its content material honest working labour, is that by Nguyen Khang (1912-1988) of fishermen, entailed “Fishing in the Moonlight” (1943). (Plate 13). This has a dense black background, against which the somber, hard working fishermen drift in sampans above a sea of multi-coloured fish. Accentuating the three dimensional effect, two fisherwomen standing in the shallows have their arms half visible above and half below the surface of the water. This is especially interesting, in that traditional lacquer and Chinese derived paintings, usually deny any perspective.

Plate 13:
Nguyen Khang; “Fishing in the Moonlight”;
Cao Trong Thiem; Ibid; p. 60

NguyenKhang

This type of artistic tradition continued well into the 1980’s. Nguyen Khang (1912-1989), who we met above, in 1960 did the 3 panel painting “Troops Marching Across a Stream”, in the same impressive lacquer tradition as he had used in 1943 [Plate 14]. At an initial look, all one sees is a dense jungle with groves of bamboo and green profusions. Then one sees that the jungle truly is alive, that the Viet Cong are moving silently across it and fording a stream.

Plate 14: Nguyen Khang; “Troops Marching Across a Stream”;
Unpublished Source

NguyenKhang2

It should not be thought that the materials were confined to lacquer. Oil was also very commonly used. For instance, depicting the road that Vietnam had come through, Huynh Van Gah (1922-1987) showed a harrowing line of Vietnamese refugee prisoners who are being foot-marched by French colonial guards [Plate 15].

Plate 15: Hyunh Van Gah
‘Prisoners’;
Unpublished Source

VanGah

In contrast Nguyen Trong Kiem (1930-1991) composed a haunting allegory of the future – “When a Child was Born” (1960); [Plate 16]. This large painting depicts a newborn child in the arms of its mother, with an army father standing close. All around are the people, evidently poor, against a background of a bombed out city. The meaning is clear, that the new state will provide a new society.

Plate 16: Nguyen Trong Kiem
‘When a Child Was Born’;
Cao Trong Thiem Ibid; p. 133

Kiem

While all these examples of art vary in their degree of “tendentiousness”, little that we have illustrated can be really termed hagiographic. That is not to say that there are a considerable number of images of Ho Chi Minh. Many of these are of Ho in ordinary activities, or in the guerrilla camps, of “Uncle Ho on a Mission in Viet Bac” by Duong Bich Lien (1980) [Plate 17].

Plate 17: Duong Bich Lien;
‘Uncle Ho On a Mission in Viet Bac’;
Cao Trong Thiem Ibid; p. 124

DuongBichLien

While these images certainly exist, the predominant feel obtained from the paintings exhibited in the Vietnam Museum of Arts is of a far broader and higher art activity than can be classified as ‘propaganda’ art or hagiographic art. Rather impressive technical and visually appealing pictures of real and ordinary people are far more predominant.

War Themes

Not even a simple overview as this, of the artistic legacy of modern Vietnam should ignore the war themes. These are in such abundance, that for instance at the War Museum Hanoi, many are not even given the honour of a label illustrating the title or the artist. A selection of these can be found relatively easily, in a publication from the British Musuem of late war drawings, in “Vietnam – Behind the Lines – Images from the War 1965-1975”; Jessica Harrison-Hall; London 2002.

This article will not discuss poster art in any detail. But an interesting historical comparison of the wood cut in Plate 3, shows again how the modern Vietnamese artist harked back to her/his heritage at a number of points. The wood cuts continue the famous Da Hong village traditions. They both depict episodes from earlier wars of national liberation, in particular those against the Chinese Han dynasty who occupied Vietnam for many years.

Plate 17: Pham Van Don; Plate 18: Hoang Tram; ‘Three Generations’; Cao Trong Thiem Ibid p.121;
Cao Trong Thiem Ibid; p.98

PhamVanDonHoangTram

The sheer plethora of art produced regarding the war cannot be quickly précised in a short article, and these examples from the War Museum should suffice. But three pictures from the Fine Arts Museum are worth showing with a little discussion also. So these again revert to the fine arts tradition of using lacquer, and again do so in an ingenious manner.

Le Tri Duong (1949) painted “Breaking Through a Key Point” showing a tank with its barrel aiming at the skies, bursting through a blockade onto a red road, being hailed by 4 guerillas – three women and a man. The red lacquered road and the gold lacquered background are again symbolic. [Plate 19].

Plate 19:
Le Tri Duong; “Breaking Through a Key Point
Cao Trong Thiem; p.170.

LeTriDung

Hyunh Van Gah, who we met above, in “Heat and Gun” shows an impressive confrontation between a phalanx of black-pajama-ed women and one old man and a US marine.

Plate 20: Hyunh Van Gah; “Heart & Gun”:

Cao Trong Thiem Ibid p.123;

HuynhVanGam

In ‘Fire Coordination’, (1974) Le Huy Toan (born 1930) painted in 1974, shows a bleak and frightening landscape composed of bomb craters and shrapnel cascades into the sky, while a single young girl confronts a series of tanks approaching her.

Plate 21:
Le Huy Toan; “Fire Coordination’; Cao Trong Thiem Ibid; p.136

NguyenHuyToan

Aftermath of Doi Moi – Faceless Women and Western Reproductions

While the national liberation struggle was victorious, it was never moved beyond that to the socialist phase. The “Chinese” wall identified by Lenin between the two revolutions – firstly the national democratic liberation, and secondly the socialist revolution – was never breached in Vietnam. That Ho Chi Minh was an inspiring and great leader of the Vietnamese peoples, is beyond doubt. However his legacy is largely that of a great national liberation ideologist.

After Ho Chi Minh’s death, and the final liberation of the South of Vietnam, the state erected in Vietnam was controlled by the Vietnamese national bourgeoisie. However within a relatively short space of time, the state was once more marked by an enormous influx of foreign capital. The policy of “Doi Moi” made this quite official. That this influx of foreign capital, was both unlimited, and not without burdens on the Vietnamese people is evident. Unsurprisingly USA capital is not very high on the score sheet, being much lower than Singaporean, Taiwanese, Korean and Japanese capital. Irrespective of which capital inflow is dominant, the net result has been the open and unequivocal development of capitalism in an acknowledged “open market” economy. The result on art has been frankly paralleled. Pictures of languid Vietnamese women, often faceless and often dressed (if not un-dressed) in the now ‘traditional’ white —, abound. Interestingly the market place is full of the heirs of the technically proficient artists of the earlier period. They are now largely reduced to selling the most elaborate reproductions of any Western artist that takes your fancy. From Dali to Picasso to Renoir to Van Goh – all are perfectly reproduced in oils and available at a fraction of what it might cost in the West, were it possible to get such.

Conclusions

Naturally, there are far more pressing concerns for the Vietnamese peoples than their art history.

Many still live in an astounding poverty.

Despite national liberation, life is hard for the Vietnamese peasants, numbering still about 75% of the population. Official figures for unemployment are around 7-10%. Degrees of disparity between rich and poor are growing rapidly, as even officials of the World Bank have recognised, citing growing ginni coefficients for Vietnam.

Vietnam’s art history however, is another affirmation of the Marxist aesthetic viewpoint, that art reflects the society in which it develops. We believe it also shows that the socialist realist tradition – as it was embraced by the Vietnamese liberation artists – is much deeper than simple hagiography. At its’ best, and why should an artist not strive for her or his best? – it is an affirmation of life, and a philosophic reflection upon all of life.

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Revolutionary Communist Party of Volta (PCRV): Statement on the Popular Insurrection in Upper Volta, known as Burkina Faso

BurkFas1

Revolutionary Communist Party of Volta (PCRV)

November 1, 2014

Upper Volta, called Burkina Faso, is experiencing a revolutionary situation which led to a popular insurrection on Thursday, October 30, and ousted the autocrat Blaise Compaoré on Friday, October 31, 2014, despite his sordid maneuvers to maintain himself at the head of the neocolonial State at all costs.

Our people in their various constituencies and the popular youth have won an important victory with a spirit of determination and political maturity in thwarting the various conspiracies and in facing with heroic courage the barbaric repression that led to dozens of dead and wounded. This historic popular movement, which quickly spread like wildfire across the country in the wake of recent major demonstrations organized by the reactionary bourgeois opposition as well as by the Coalition Against the High Cost of Living on Tuesday, October 28 and Wednesday, October 29, fully confirms that when the people rise up neither repression nor terror can prevent them from winning.

This popular insurrection is taking place in the context of the continuation of the eruption onto the political scene of the popular strata with their pressing demands, who in the past allowed themselves to be oppressed and exploited without protest. They have learned to take charge of their own destiny through powerful struggles to get out of their misery and the deep distress that has struck them for decades, particularly under the government of the Fourth Republic of Blaise Compaoré due to neocolonial exploitation.

Indeed, since the hunger riots of 2008, not a day has gone by in which the poor peasants, workers and salaried employees, the poorest strata in the towns consisting of workers, apprentices, small traders, artisans, and especially the youth thrown into the informal sector, have not revolted and sometimes carried out insurrections for the right to a decent life, justice and freedom and a real change in favor of the people.

BurkFas2This is the practical and concrete expression of the deepening of the revolutionary crisis that has shaken our country since the assassination of journalist Norbert Zongo and his three companions in misfortune on December 13, 1998. This revolutionary crisis that has been developing in stages since then reached an unmatched scale today with this unprecedented popular movement in our country. This resulted in massive mobilizations through the various marches and meetings of the reactionary bourgeois opposition as well as of the Coalition Against the High Cost of Living (CCVC) and of the trade unions in June and July of 2013 and throughout 2014. The depth of the crisis is such that it led to the breakup of the ruling party, the CDP (Convention for Democracy and Progress) and to a reconfiguration of the national political scene. The stakes are either a fundamental change in favor of the people or a reform of the neocolonial system and the neocolonial rule, mainly French, in our country. Several memorable facts also reflect the failure of the mafia regime of the autocrat Blaise Compaoré and focused the anger and struggles of the masses:

* the lack of function and total discredit, striking the institutions of the Republic (government, parliament, justice), which have been reduced to a plaything in the hands of Captain Blaise Compaoré and his mafia clan in power who use and abuse them at their will;

* the pronounced inclination for the monarchisation of power with a strengthened collusion between the business community, traditional leaders and religious authorities;

* a gradual erosion of liberties under the pretext of the fight against organized crime with enforced disappearances and extrajudicial executions fraught with the danger of gangland murders or disguised political assassinations;

* the persistence of impunity for bloody crimes brought to light by the democratic and revolutionary movement;

* a socio-economic situation plagued by corruption and impunity for economic crimes;

* the persistent problem of high prices with an increased impoverishment of the broad popular sectors;

* a clear revival of the vitality of the social front and an increasingly marked determination of the masses to fight for bread and freedom, as shown by the multiple actions and struggles organized and led by the party.

BurkFas3The popular insurrection of October 30 is fully justified in view of the overall maturation of the revolutionary crisis in Burkina Faso. But very quickly the working class and the people are realizing that their hard-won achievements are being threatened and reversed by the putchist clans of the neocolonial army, which have carried out a reactionary military coup d’état. Their ultimate goal is to stifle the revolutionary process taking place and to save the bankrupt neocolonial system. The reactionary bourgeois opposition, while advocating change, is carrying on negotiations with the military high command for a “transitional government” that would allow them to maintain their opportunity of obtaining neocolonial power.

The imperialist powers (France, United States and European Union) are busy trying to impose a solution that would preserve their economic and geostrategic interests in Burkina Faso and in the sub-region of West Africa. They are taking account of the role played by their former pawn Blaise Compaoré who allowed their military presence in the country to become a strategic platform of aggression and exploitation of the peoples of the sub-region.

But the popular movement remains vigilant and is showing its willingness to fight in order not to “be robbed of their victory.” The Revolutionary Democratic Movement, led by the party, in this complex situation is opposed to the military coup and calls on the masses to continue the struggle to deepen the revolutionary process.

The PCRV calls on the working class, the people and the youth to strengthen their organizations of struggle, especially the CCVC, and to organize together with them for the revolutionary overthrow of the neocolonial regime and to put in place a Provisional Revolutionary Government and a Constituent Assembly in order to build a modern democratic Republic.

The PCRV calls for international solidarity in the face of repression against the democratic and revolutionary movement and the interference of the imperialist powers in our country.

Bread and Freedom for the People

Long Live Proletarian Internationalism

November 1, 2014

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Labour Party (EMEP): It Is a Human Duty to Resist ISIS, To Defend Rojova and To Be in Solidarity with Rojovan People

Rojava

The hunger for blood of ISIS gangs cannot be satiated. Gangs set up supposedly in the name of Allah and religion, refusing the right to live to non-Sunnis as well as Sunnis that disagree with them, trying to create a culture of massacres, torture, decapitation, playing football with severed heads, etc.

Following the abandoning of Mosul by regional powers to ISIS control as part of an imperialist plan, attacks on the Kobane Canton in Rojova (Kurdish region in Northern Syria) by ISIS gangs have been repealed by the Kurds and all those peoples who share their fate.

Initially supported against Syria and now attempting to control the whole of the Middle East, ISIS cannot be controlled. Having been supported and encouraged by Turkey, Saudi Arabia and Qatar, ISIS is increasing its influence in the region through daily massacres and attacks.

The union of all regional salafi-jihadist groups, ISIS is terrorising, dominating and occupying territories in the whole of Middle East and primarily the Sunni-Arab areas. It is clear that international imperialist powers are trying to legitimise ISIS.

Those behind the attack on the Kobane Canton include international imperialist powers such as the USA, France and UK, wanting to increase chaos and conflict in the Middle East and use it as an excuse for intervention, as well as those sectarian countries such as Turkey, Saudi Arabia and Qatar.

It is well known that Turkey staged numerous operations and machinations to suffocate the Rojovan Revolution. Having first supported Al Qaida, FSA and then Al Nusra, sending two thousand trucks full of weapons and supplies, providing money and logistical support and still failing to topple the Assad regime, regional dictators and imperial powers seem to be in agreement over suffocating the peoples’ rule in Rojova.

The Rojovan people are putting up a heroic resistance, causing great losses to and the withdrawal of ISIS in the face of resistance by PYD and PYJ forces. The resistance is growing, gaining more support and solidarity in the region and worldwide.

We support the attempts by Kurdish peoples and those of other beliefs, races and cultures to create a future that is free, just and united through the Rojovan revolution and repeat our message of solidarity. Threatened by the advances in Rojova, dictators, defenders of denial and assimilation, imperialists that divide up the Middle East and draw borders with rulers are now attempting to suffocate the Kurdish struggle through ISIS.

As world experiences have demonstrated, peoples that organise and resist cannot be beaten. The resistance of the Kurdish and all other Rojovan peoples will not be broken. We call on all peoples that stand up for labour, peace and freedom to support and show solidarity to the justified struggle of the Rojovan peoples.

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European ICMLPO Members: No to the Anti-Social, Anti-Democratic and Militarist European Union

logo_mundo-copia

Regional conference of parties and organizations of the International Conference of Marxist-Leninist Parties and Organizations (ICMLPO)

The recovery of the global capitalist economy is not on the agenda. The recovery is constantly being announced for tomorrow, but for the vast majority of countries, there is stagnation or recession. The so-called emerging countries are in turn caught up in the crisis.

Within the European Union, the governments of the right, social-democrats or coalition governments are imposing brutal austerity policies and the European Commission is charged with controlling their strict implementation. In the Euro zone, it exerts even a priori control of the budgets of the various governments, ensuring that they meet the neoliberal criteria of reduction of the budgets and the indebtedness of states.

This neoliberal dogma of reduction of state debts up to 3% of GDP has become the “rule of steel” especially written into the Merkel-Sarkozy Treaty (the “fiscal pact”), a real war machine against the social gains, social welfare and public services.

The offensive of the bosses, the governments and the European Commission focuses on the drastic lowering of wages and increased productivity, which combined make for increased profits of the monopolies. The crisis is a formidable pretext to generalize flexibility and oppose the rights and gains of the working class and the toiling masses. The policy of mega-austerity imposed by the “troika” (European Central Bank, European Union and IMF) on Greece, implemented by the coalition government of the right and social-democracy, is causing immense social harm, an unprecedented decline in the standard of living, a decrease in life expectancy and the health of the population, not to mention the exodus of young people and skilled workers, who have left their country in the hope of finding work in other countries. The same thing is taking place in Spain, Italy and Portugal, where unemployment has skyrocketed, especially among the young workers, and where millions of families live below the “official” poverty line.

Europe is synonymous with the policy of austerity, social regression, etc.

For the workers and peoples, the youth and women of the popular strata, the EU stands for the policy of austerity, social regression, the competition of all against all, social dumping, mass unemployment and misery. In all the EU countries, the working class and the toiling masses are in a chorus of protest against this policy: a massive protest, with strikes, demonstrations and mobilizations that put millions of people in the streets, of urban and rural workers, the retired, etc., in short of all the victims of this policy. The media controlled by the monopolies pass over this in silence, because the financial oligarchy, the governments at its service and the European Commission are its instrument, fearing above all that those fights against the same policies will reinforce each other, and that the working class and the toiling masses will become conscious of their strength and their common interests and they will lead all strata that are victims of these austerity policies in their fight.

and of reaction

To impose these policies of austerity and competitiveness, the financial oligarchy, the monopolies and banks do not hesitate to put in place unelected governments, governmental alliances including parties of the extreme right, and to impose European norms and directives that have the force of law, which are binding on the governments, parliaments and national institutions. Thus also in Italy, the troika began by imposing the first non-elected government and gave its support to a third government, also unelected, led by a reformist liberal leader who wants to speed up imposing anti-worker measures and an authoritarian presidential system. Austerity goes along with with more reaction, more repression against all those who oppose it and further criminalization of social protest.

This only emphasizes the anti-social and anti-democratic character of the EU. The real power is in the hands of the heads of states and governments and the unelected European Commission, which decides and develops directives that are imposed on states, under pressure from representatives of lobbies of the monopolies. The superabundant European Parliament discusses these constantly, but its decisions have little effect. It serves as a “democratic” pretext to an EU that is not democratic.

No to Fortress Europe, No to Militarist Europe

This is a EU that takes refuge behind an arsenal of laws, of military ships, of walls, in order to hunt down potential migrants crammed into boats, of whom thousands have capsized in the Mediterranean. With “Frontex” [the EU agency that controls external borders – translator’s note], detention camps such as that of Lempedusa, the walls of barbed wire, this “fortress Europe” wants to “defend” the men and women who are fleeing poverty and wars for which it is itself responsible.

Indeed, it is the EU which today is intervening militarily in the Central African Republic, an intervention decided and implemented on the ground in the first place by French imperialism, which called on its EU allies for help. Some governments have sent troops, other logistical support, but none have condemned the intervention, which is turning into a quagmire, like all imperialist military interventions in Africa. Their principal objective is the maintenance of neocolonial domination and the control of sources of raw materials, particularly uranium deposits. The most aggressive and belligerent imperialist powers in the EU, particularly French imperialism, British imperialism, and more and more German imperialism, are playing a particularly dangerous and reactionary role in order to push the EU to acquire military means to defend “their” interests, particularly in Africa, which it considers its “exclusive hunting ground.” This policy is carried out in close collaboration with U.S. imperialism, which gobbles up billions and is pushing militarization in all the EU countries. It is openly directed against the struggles of the peoples of Africa, who are fighting to get rid of imperialist domination and the reactionary cliques in power in these countries, which are its instruments.

Secret negotiations on the “Great Transatlantic Market”

For months the European Commission has been negotiating in secret the terms of a trans-Atlantic agreement with representatives of the governments, the Ministries of Commerce and the big U.S. companies. It is a neoliberal “free trade” treaty that seeks to break the norms of protection of food quality and the environment and to expand the opening of all markets, in particular public markets, to the appetites of the monopolies. These agreements would allow the monopolies to bring the States before a private court that could sentence them for obstructing “free” competition. This treaty was presented by Obama as a “NATO” in commercial matters, aimed at combating the economic power of China and other competitors of the US-EU alliance, according to the formula: Unite against the rest of the world and set off together in the economic war for the conquest of markets and the control of raw materials and sources of energy. This agreement is a war machine against the workers and peoples of the whole world, through the competition of all against all. The only beneficiaries of the “free and undisturbed competition” are the most powerful monopolies. It is urgent that a large movement be developed in all EU countries to demand an end to these negotiations.

The dangerous situation in Ukraine

This policy has led to the current dangerous situation in Ukraine and throughout the region, which threatens to escalate into a large-scale military confrontation.

First, there are the inter-imperialist contradictions, the policy of eastward expansion of the EU, under the impetus of German imperialism, which is seeking to strengthen its leadership in the EU and thus carry more weight in the competition among the imperialist powers on a world scale.

Ukraine is a large country with very important resources and occupies a geostrategic position that is essential for Russia. To swallow up Ukraine into the sphere of influence of the EU would be a great blow to Russia and the ambitions of its leaders to make their country a major imperialist power. No one should ignore this. But this is exactly what made the EU leaders not hesitate to support the reactionary forces, including openly fascist forces, who took power through a coup. Putin’s reaction was immediate. U.S. imperialism openly came into action to take control of the management of this crisis and to place itself at the head of its European allies, who for years have built economic ties with Russia. French imperialism sells it weapons, German imperialism depends in part on its gas supplies, British imperialism needs billions from the Russian financial oligarchy, and a large portion of the gas consumed by EU countries runs through Ukrainian pipelines. Taking advantage of this crisis, NATO is expanding to the East, still closer to the borders of Russia, which only fuels the tension.

The big imperialist powers are directly involved and are adversaries. If today none of them wants a direct military confrontation, an unstable situation has taken hold in the region amid a revival of militarism. The EU appears more and more clearly as an imperialist bloc whose ambitions threaten peace. While there is not complete unity within it, this is the course that the dominant imperialist powers within it are imposing and are developing on its behalf.

The identity of views between the social-democratic parties and the conservative parties should be noted here. They all supported the Allied response to the extreme right in Ukraine and they all welcome the return of NATO to the stage. The way the appointment of Stoltenberg, a leader of Norwegian social-democracy, as Secretary General of NATO was hailed by all of these forces is an example.

The workers and peoples reject this Europe

This whole policy is now the object of a profound rejection by the workers and peoples. This protest continues to grow everywhere. The progressive, revolutionary and anti-imperialist forces, the Marxist-Leninist parties and organizations, have an urgent duty to stand at the head of this vast protest that affects all strata of the people, starting with the working class. To stand at the head of this protest means to fight relentlessly against the austerity policies that the governments and the EU are imposing. It is to support the aspirations and struggles of the workers and peoples against the anti-democratic character of the EU, against the imperialist nature of its policy and against the denial of the right of the peoples to decide their own future.

The reactionary and extreme right forces, the openly fascist groups and parties want to take advantage of this protest to lead it on the dangerous path of nationalism, division and xenophobia. For them, the enemy is not the capitalist system, but the other peoples or the “foreigners.” These forces want to utilize the European elections to strengthen themselves, to elect deputies and receive funding from the EU to extend their work.

The position of the Marxist-Leninist parties and organizations in the European elections

We Marxist-Leninist parties and organizations, the signatories of this declaration, will develop our analysis of the nature of the EU and its policies and make known our positions on the occasion of these elections. These elections are a reflection of European construction; this is a caricature of democracy.

In countries where there are forces that are taking part in these elections on positions of the fight against the EU of austerity, reaction and war, we call for a vote for these lists. In countries where this is not the case, or where the choice is between forces supporting the EU and forces that criticize it in certain aspects, without questioning its foundations or its objectives, and develop illusions about possibility of reforming it, we do not endorse any of these lists and develop an active policy in favor of abstention.

In the countries where the progressive forces are fighting for the withdrawal of their country from the EU, or where they have popular support or they are engaged in broad fronts that are taking part in lists on this basis, we call for a vote for them. We will popularize these lists on an international level, in the name of the right of the peoples to decide their own fate. We denounce any blackmail, any attempt to conceal their fight or to distort its meaning and range.

In all cases, we put forward the following main lines:

Down with the imperialist EU
Stop the austerity policies of the EU
No to the EU of austerity and reaction
No to the Europe of criminalization of social protest
No to the war policy of the EU
No to the Transatlantic Treaty
No to the project of the United States of Europe
No to imperialist Europe
For the right of the peoples to withdraw from the EU
Yes to the solidarity of the workers and peoples.

Regional conference of member parties and organizations of the International Conference of Marxist-Leninist Parties and Organizations

Germany, April 2014

Denmark: Communist Workers’ Party of Denmark – APK; France: Communist Party of the Workers of France – PCOF; Germany: Organization for the construction of a Communist Workers Party (Arbeit Zukunft); Italy: Communist Platform of Italy; Norway: Marxist Leninist Group Revolution; Spain: Communist Party of Spain Marxist-Leninist – PCE-ml; Turkey: Party of Labor EMEP

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Marxist-Leninist Organisation of Britain on the 1973 Yom Kippur War

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Originally published in Class Against Class, organ of the Marxist-Leninist Organisation of Britain, No. 2 Special Edition, October 1973.

Web edition by Alliance Marxist-Leninist July 2003

THE WAR IN THE MIDDLE EAST

War Has Come Once Again To The Middle East

On October 6th, 1973, the armed forces of Egypt and Syria, crossed the cease-fire line established after the war of June 1967 into Israeli –occupied territory seized from these states in that war.

But the new war differs from that of 1967 in one very important respect – for reasons that will be analysed later, Israel no longer enjoys the full support of world imperialism, even in the eyes of United States imperialism. Already in the first few days of the war the powerful Israeli war machine has suffered great losses in men and machines, already the first arrogant communiques of the Israeli High Command have given way to gloomy admissions that the war is likely to be long and bitter, already the myth of the “invincibility” of the Israeli armed forces has melted away.

The Foundation of Israel

Zionism, the political philosophy of the Israeli ruling class, has been since its inception at the end of the 19th. century an ideology serving objectively the interests of developed capitalism, of imperialism. It presents workers and petty bourgeois of Jewish descent as members of “a Jewish nation,” as “aliens” in the countries in which they live; it tells them that, to be “free,” they must emigrate to their ancient “national homeland” in Palestine. Thus, the participation of a Zionist worker in the struggles of the working class for a better life, for socialism, can at best be only half-hearted, for he regards himself as an “outsider” whose eyes are directed towards “his own” country, which has now taken concrete shape in the state of Israel. Thus, Zionism is complementary to anti-semitism in its reactionary divisive effect.

The desire of the British imperialists to win the support of the Zionist movement for the Allied war effort in the First World War brought the Balfour Declaration of November 1917; this promised that the British Government would facilitate the setting up of “a National Home for the Jewish People” in Palestine. The British imperialists were unworried by the fact that two years earlier, in July 1915, they had won Husein ibn Ali, the Grand Sherif of Mecca, to the side of the Allies by promising to support the establishment of “an independent Arab state” in Palestine and that in 1916 they had signed a secret treaty with the French imperialists dividing a Palestine between them. Palestine became simply “the much promised land.'”

When the First World War was over, the British and French imperialists took over the Arab Near East disguising their colonial rule under the cloak of “League of Nations mandates.” As Jewish immigration continued, both legally and illegally into Palestine, the rise of Arab national liberation movements led the imperialists to adopt neo-colonial manoeuvres: Iraq was granted “independence” in 1932, Syria and Lebanon in 1941, Jordan in 1946. And in 1947 the British government announced that it was ending its rule over Palestine in May of the following year and was transferring its “responsibilities” there to the United Nations.

The United Nations envisaged the partition of Palestine into a Jewish state and an Arab state, with Jerusalem as an independent city. But it’s scheme was never put into effect. On May 14th, 1948, the Zionists proclaimed most of Palestine “the state of Israel.

The Palestinian Refugees

At the time of its formation, the state of Israel contained 1.3 million Arabs and 0.7 million Jews. The Zionists took steps to establish a Jewish majority. As Michael Bar-Zhchar says in his sympathetic biography of the founder of Israel:

“Ben Gurion never believed in the possibility of coexistence with the Arabs. The fewer Arabs within the frontiers of the future state the better … A major offensive against the Arabs would … reduce to a minimum the proportion of the Arab population within the state …. He may be accused of racism, but in that case the whole Zionist movement would have to be put on trial.”

Thus, even before the declaration of “independence” Zionist armed gangs had begun a campaign of massacre and terror against the Arab population, driving great numbers of them to seek refuge in the neighbouring Arab states. By 1950 a million Arab refugees from Palestine were officially receiving United Nations aid, and by 1971 2.6 million of the 3.0 million population of Israel were Jews.

Dependence upon Imperialism

The establishment of a Jewish racist state in the heart of, and hostile to, the Arab world gave world imperialism a valuable bridgehead against the Arab national liberation movement – a bridgehead dependent upon the active support of world imperialism for its very existence.

At first Israel continued to depend upon British imperialism. It was Britain, together with France, which collaborated with Israel in the war of aggression against Egypt which began in October 1956. But the more powerful US imperialists were unwilling to allow their British and French rivals to extend their influence in the Middle East, and compelled the British, French and Israeli forces to withdraw ignominiously from Egyptian territory.

From this time on, the Israeli ruling class transferred their dependence to US imperialism which supplied huge quantities of military “aid” to Israel. It was as a result of this military “aid” that in June 1967 Israel was able to launch its war of aggression against Egypt, Syria and Jordan, compelling these states to accept a cease-fire which left Israel in control of large areas of their territory.

Later, in the UN General Assernbly, the United States representative defended the Israeli aggression as an action of “self-defence,” but in November 1967 the UN Security Council unanimously adopted a resolution, drafted by, Britain, which demanded that Israel withdraw all troops to her former boundaries and bring about a just settlement of the refugee problem. The Council appointed Gunnar Jarring, of Sweden, as UN Special Representative charged with securing the fulfillment of the resolution, but the Israeli government has always refused to carry cut its terms.

The Palestine Liberation Movement

The 1967 defeat of the Arab states, and the new numbers of Arab refugees which the war added to those of earlier years, stimulated the rise of a Palestine national liberation movement, formed largely from among these, refugees. Although, this resistance movement soon fragmented into a considerable number of rival organisations, and their declared aim of the liberation of Palestine was greatly retarded when the leaders of some of these organisations turned from organised guerrilla warfare to acts of individual terrorism in various countries, it remained a significant force.

Washington’s New Plan

By the summer of 1970 it had become clear to the most influential section of the United States imperialists that it would be essential for the USA to import large quantities of oil in the next few years from the Arab states in the Middle East. This meant that full support of Israel against these Arab states was no longer in the best interests of the US imperialists.

From this time on the US imperialists made their position clear to the Arab Middle East governments. They would endeavour to persuade the Israeli government to withdraw “voluntarily” to the boundaries existing before the war of 1967. And if those attempts failed, they would hold back (without discontinuing entirely) their military “aid” to Israel and would tacitly approve of an all-out war on the part of the Arab state provided:

1) the Palestine national liberation movements were effectively liquidated; and
2) the representatives of Soviet imperialism were expelled from the Arab states.

Whatever the military outcome of such a war might be, it would gravely weaken the military and economic power of Israel and facilitate the imposition upon its government of a new cease-fire compelling it to accept the terms of the Security Council resolution of November 1967. The European imperialist powers – even more dependent upon Middle East oil than the USA – could be depended on to take the initiative in this imposition.

The Execution of the Plan

In 1970 and 1971 the US government pressed its “peace plan” through visits to, the Middle East by Secretary of State William Rogers, Assistant Secretary of State: Joseph Sisco, and diplomats Donald Bergus and Michael Sterner. The Israeli government, over-confident of its position, refused to consider withdrawal to its old frontiers.

Meanwhile, using as a pretext the hi-jacking of several airliners to Jordan by Palestine commandos, in September 1970 King Hussein of Jordan launched a large scale offensive against the national liberation forces within Jordan; this offensive was resumed in July 1971, after which Hussein announced that the resistance forces within Jordan had been completely liquidated.

In April 1973 the government of Lebanon, using as pretext the Israeli commando raid against Palestinian guerillas near Beirut in February, launched an offensive against the Palestinian national liberation forces within Lebanon. The attack ended in May after the guerilla’s had suffered heavy casualties.

Meanwhile, the Egyptian government took action against the representatives of Soviet neo-imperialism, as described at the time in the MLOB’s journal RED FRONT:

“Since the death of Nasser, two conflicting trends have emerged within the Egyptian capitalist class – each standing for a different method of trying to solve the problem of the continuing occupation of Egyptian territory by the troops of their U,S. dominated neighbour, Israel.

One section, headed by former Vice-President Ali Sabry, favoured the adoption of a phoney programme of “socialism” as a pretext for completely subordinating Egypt to Soviet neo-imperialism in an alliance which would force Israel to retreat from her present positions.

The other section, headed by President Anwar Sadat himself, favoured confederating Egypt with Syria and Lybia, in order to offer to subordinate this confederation, to US imperialism in return for US pressure, on her Israeli puppets to withdraw their forces.

The US imperialists having indicated their interest in this second line of approach, the President dismissed Ali Sabry on the eve of the visit to Egypt by US Secretary of State William Rogers, at the beginning of May 1971.

Soon afterwards several hundred prominent persons associated with the pro-Soviet faction within the capitalist class – including Ali Sabry; the Secretary-General of the ruling “Arab Socialist Union”, Abdul Nur; six Cabinet Ministers, including the Minister of Defence, General Mohammed Fawzy, and the Minister of the Interior, Sharawy Gornaa – were arrested in the name of ‘preserving the independence of Egypt from a coup engineered by a foreign power.’

Apprehensive for the safety of their massive economic and military investments (more than half of Soviet “aid” has gone to Egypt), the Soviet neo-imperialists immediately despatched a high-level though “unofficial” delegation to Cairo headed by President Podgorny. The Egyptian government was pleased to sign a 15-year ‘Treaty of Friendship and Co-operation’ with the Soviet Union, and to use it as blackmail to further persuade the US imperialists to pressure their Israeli puppets into a peace settlement acceptable to the Egyptian capitalist class.”

(RED FRONT, July-August 1971; p.20).

In September 1973 the Syrian government imposed “strict restrictions” on the movements of Soviet personnel in the country. Meanwhile, in August, US Assistant Secretary of State Joseph Sisco had made the position of the US imperialists only too clear when he said bluntly on Israeli TV:

“While our interests in many respects are parallel to the interests of Israel, they are not synonymous with those of the state of Israel. The interests of the United States go beyond any one nation in this area. … There is increasing concern in our country over the energy question and I think that it is foolhardy to think that this is not a factor in the situation.”

In September King Faisal of Saudi Arabia, whose country is a long-standing semi-colony of the USA to which it exports almost all its oil, declared (in support of the US plan) that continuing US support for Israel might be purchased “at the cost of Saudi oil.” President Nixon commented on this statement in a manner strikingly different from his earlier statements of full support for Israel, saying, “Both sides are at fault. Both sides need to start negotiating. That is our position.”

The Israeli leaders, becoming aware that they might be as expendable to the changing needs of US imperialism as the Chiang Kai-shek regime, made frantic approaches to the British and German imperialists. But Chancellor Willy Brandt invited to Israel for a state visit in June 1973, said only what British Foreign Secretary Alec Douglas-Hume had declared move bluntly in Cairo in September 1971, that Israeli withdrawal from the occupied Arab territories was “a vital requirement.”

When at the beginning of October 1973, the Austrian government closed down the transit camp for Jews from the Soviet Union (a capitalist government does not change its policy to save the lives of a few Jewish hostages), the relative isolation of the Israeli rulers from imperialism was finally clear.

A Just War of Liberation

The war of the Arab states for the liberation of the territories seized from them by Israel on behalf of United States imperialism is a just war, which will have the support of progressive people in every country. This just character is not altered by the fact that the US imperialists have, in a new world situation, given the green light to the Arab states.

But a war fought by Arab states with the tacit support of the US imperialists cannot solve the plight of the Palestine refugees. This requires the forcible destruction of the present Israeli racist state machine and the establishment of a democratic Palestinian state in which Arabs and Jews can have equal civil rights. This can be brought about not by the present war, but only by the armed struggle of a united Palestinian national liberation movement purged of illusions of the usefulness of acts of individual terrorism.

BUT THIS IS A QUESTION FOR THE FUTURE.

 

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