Category Archives: North America

Quick Analysis of the Trump Cabinet

Jeff Sessions (Attorney General) – close association of white nationalists and opponent of birthright citizenship, denounced by Coretta Scott King for being racist, lover of the CIA and mass surveillance.

Wilbur Ross (Secretary of Commerce) – billionaire monopolist Trump donor who drew criticism for safety failures after an explosion killed 12 workers at a coal mine owned by his company.

Ben Carson (Secretary of Housing and Urban Development) – retired creationist surgeon who admits himself he isn’t qualified to be in the Cabinet.

James Mattis (Secretary of Defense) – an extreme warhawk removed from command in 2013 for his hardline behavior.

Ryan Zinke (Secretary of the Interior) – freshman Congressman with an anti-environment record who doesn’t believe in climate change.

Betsy DeVos (Secretary of Education) – billionaire heiress anti-public school crusader who favors unregulated charter schools.

Rex Tillerson (Secretary of State) – ExxonMobil executive with no experience in the public sector.

Steve Mnuchin (Treasury Secretary) – a hedge-fund manager and one of the chief architects of the financial crisis, became infamous for his bank’s cruel foreclosure practices.

Elaine Chao (Secretary of Transportation) – former head of the Bush Administration Labor Department that was investigated and found to regularly fail to protect the rights of low-wage workers.

Andy Puzder (Secretary of Labor) – a fast-food CEO who opposes minimum wage increases and worker protections; one remarked that machines don’t need days off, sick days, or maternity leave and don’t file lawsuits.

John Kelly (Secretary of Homeland Security) – retired general and immigration hardliner who favors mass deportations and ICE raids.

Tom Price (Secretary of Health and Human Services) – staunch opponent of women’s rights and access to contraception who supports cuts to Medicare and Medicaid and has already tried to overturn the Affordable Care Act.

Rick Perry (Secretary of Energy) – former Governor of Texas and climate change denier who wants to eliminate his own department completely.

Scott Pruitt (EPA Administrator) – former Oklahoma Attorney General and climate change denier who sued the EPA to roll back its efforts for clean water and clean air and tackle climate change.

Stephen Bannon (Chief Strategist) – alt-right former banker and self-proclaimed white supremacist, former chief executive editor of the far-right Breitbart News.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Santo Domingo Dominican Republic, August 10, 2016

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

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

Venezuela

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

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

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

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

Haiti

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

Puerto Rico

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

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

France

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

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

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

Turkey

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

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

Mexico

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

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

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

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

Stop state terrorism; free the political prisoners!

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

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

Brazil

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

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

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

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

Long live the just struggles of the Colombian people!

Long live Peace with redistributive social justice!

National Constituent Assembly now!

Dominican Republic

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

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

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

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

Michael Parenti: Is Nicaragua More Democratic Than the United States?

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[From: Covert Action Information Bulletin, Number 26, Summer 1986]

To justify the policies of attack, encirclement, embargo, and destabilization directed against Nicaragua, the Reagan administration has charged that the Sandinista government is on the road to totalitarianism, that it denies religious and political freedom and is a threat to the security of its neighbors. The goal of U.S. policy, claims President Reagan, is to bring about a pluralistic open society in Nicaragua, a goal that never loomed very large during the fifty years of the Somoza dictatorship. More recently in a book on the Nicaraguan revolution. journalist Shirley Christian echoed this line, arguing that the contra war was a justifiable attempt ”to force the Sandinista Front into accepting major structural changes toward an open political society.”

In response to this position, supporters of the Sandinista revolution have argued that Nicaragua does have a pluralistic society, is attempting to make a better life for its people, has no aggressive designs upon its neighbors, and instead is itself being invaded along two of it borders. Others have shown that by every standard, Nicaragua’s elections have been more open and democratic than El Salvador’s and its society more humane than most others in Latin America.

Indeed it can be further argued that by every standard Nicaragua is a more democratic society than the one waging aggression against — and I do not mean Honduras. By every major democratic criterion, Nicaragua comes off looking better than the United States. Let us begin with a comparison of the national elections held in November 1984 in both the United States and Nicaragua [1]

Popular Participation

One crucial measure of an open political system is the degree of popular participation. Most voting studies in the United States and elsewhere find that nonvoters show a high degree of alienation from the political process; they believe voting is not a means of effecting changes, and they often fail to see a meaningful choice in the candidates presented to them. (This is the view also of a surprisingly large number of persons who vote in the United States.) Therefore a comparison of the respective rates of turnouts in the Nicaraguan and U.S. election might be worth pondering for a moment.

The turnout in the United States in the 1984 election was little less than 53 percent of the eligible voters, one of the lowest of any western nation. Yet the press took little note of this and instead treated Reagan’s reelection as a landslide victory and democratic mandate. In contrast, voter turnout was nearly 82 percent in Managua and 75.4 percent in Nicaragua as a whole. Yet this turnout was described in the U.S. press as “disappointing” because the Sandinistas had hoped for an 80 percent national turnout. (Left unmentioned was the fact that in Nicaragua the voting was voluntary, unlike most Latin American countries.)

Range of Political Choice

Elections that offer little choice are said to be wanting in democratic standards. The choice in Nicaragua was noticeably wider and more democratic than in the United States. Seven parties ran for seats in the national assembly and for the presidency, representing a broad ideological range: from those on the far left (who damned the FSLN for its moderate policies and for allegedly betraying the workers and peasants) to those on the center and right (who accused the FSLN of exercising a rigid control over the country, wrecking the economy and leading Nicaragua to war). All these charges and countercharges were reported and debated extensively in the public and private press in Nicaragua.

In the United States the choice was limited largely to Democrats and Republicans, who in many races are often hard to tell apart. True, there were a variety of minor parties but these were not accorded the same opportunity for participation as were the various opposition parties in Nicaragua, as we shall see.

Access to the Ballot

A variety of parties may compete in an election but if they are denied roughly equal conditions of competition or access to the ballot or shoved to the side of the political arena, it cannot be said that democratic competition exist. In the U.S. all fifty states have laws, written and enforced by Republican and Democratic officials, regulating party access to the ballot — often in ways restrictive enough to keep smaller parties from participating, thus depriving the electorate of the freedom to choose someone other than a Democrat or a Republican. Minor parties are often required to gather a large number of signatures on nominating petitions in a limited time. Thus in Pennsylvania third-party state-wide candidates must collect 36,000 signature in a three-week period; in Maryland candidates are required to collect over 55,000 signatures in a short time. Sometimes a 5 percent requirement for signatures has been interpreted to mean 5 percent of voters from every district within the state — an impossible task for a third party whose base might he confined to a few urban areas.

In some states votes who are registered with the major parties are not allowed to sign or circulate minor-party nominating petition. Petitions are sometimes thrown out by hostile officials on trivial and sometimes unlawful technicalities. (as happened to the Communist Party in Illinois and Connecticut in recent elections) compelling minor parties to pursue expensive court battles that further drain their financial resources.

In some states minor parties must pay exorbitant filing fees: $5,000 Louisiana for an independent candidate. To get on the ballot in all 50 states, a third party would have to expend an estimated $750,000 in filing fees and other expenses and collect 1.2 million signatures, a feat accomplished in 1984 by no third party. And the trend is toward less and less ballot access: in the last 12 years, sixteen states have tightened the restrictions. Between 1980 and 1984, for example, the states of Indiana and North Dakota quadrupled the number of signatures required to get on the ballot.

In Nicaragua, in striking contrast, the electoral law favors the smaller political parties. In 1984 any party could register to field candidates by merely presenting a national directorate and two representatives from each of the country’s nine regions. One of the parties that so registered, the Independent Liberal Party (PLI) asked to withdraw from the contest four days before election day. The Electoral Council ruled that it was too late for a party to pull out but that individual candidates could withdraw their names if they chose. None did so.

Accessibility to the Electorate

Being on the ballot does little good if the bulk of the voters have never heard of you or never hear *from* you. Third parties in the United States are given almost no national media coverage during campaigns. News media focus exclusively on the two major parties, failing even to report the votes that third parties get on election day (usually between one and two million all together), thus treating the minor parties as if they do not exist. Lacking the huge sums available to the major parties, especially the Republicans, the smaller parties are unable to buy major media time and space of their own. The Federal Election Campaign Act of 1974 finances the major parties, giving each tens of millions of dollars for their presidential campaigns, but the smaller parties can obtain federal funds only after they glean 5 percent of the national vote (about 4 million votes for any one party) In sum, they cannot get the money until they get the 5 percent, but they cannot yet the percent until they get the money.

In contrast, the Nicaraguan electoral law provided public financing of 9 million cordobas ($321,000) for each participating party *regardless of size* and guaranteed an equal amount of time each day on the state-run radio stations and television channels. Each party was also permitted to receive unlimited funds from private donors, including people and organizations outside Nicaragua, a provision that worked to the advantage of the centrist and rightist parties. As the campaign got under complaints from the participating parties led to changes in the electoral law, including an increase in radio and television time, an additional 3 million cordobas in government campaign funds for each party, and a lengthening of the campaign period. Parties were also guaranteed access to products in short supply in Nicaragua: paper. printing facilities, transportation and gasoline. The various parties also produced their own party newspapers, together with leaflets and billboards.

Absence of Coercion

Instances of coercion and harassment of candidates have not been an unusual occurrence in U.S. elections. In the United States third-party candidates especially those of a pronouncedly leftist hue have run into difficulties of this sort. Harassment may not be confined to the candidates themselves but may include their supporters and canvassers. In 1972 in Vermont persons who merely signed Communist Party ballot petitions found their names publicized by town clerks in an effort to embarrass them into withdrawing their signatures. Generally though, in modern times American elections have not been marked by violence nor by any serious degree of threat against candidates. The coercions are largely of the legal kind noted earlier which work well enough against third parties. In regard to individual voters, however, it should be noted that not every American citizen has the right to an uncoerced vote, as testified by the continuing need for a Civil Rights Voting Act, the renewal of which President Reagan opposed.

Turning to Nicaragua, we find there were serious acts of violence and murder in the 1984 election — all committed by the force supported by the Reagan administration. The contras killed the presidents of two polling stations and two volunteer workers involved in registration. In the Jinotega mountains, one polling station worker’s throat was cut by the contras in front of his wife and family. On election day a member of the electoral police was shot to death by contras in La Tronica. In all, twelve election workers lost their lives in assaults by counterrevolutionaries .

The election was less than flawless in its procedures, but the overall performance was one that the Nicaraguan democracy can be proud of. There was free and open campaigning in every area of the country except in some war zones. According to estimates by the Supreme Electoral Council, there were some 250 public rallies. In general the election was characterized by untrammeled and vigorous political debate. If the FSLN was instituting a totalitarian regime, it was going about it in the wrong way.

About five of the public rallies were marred by incidents of violence but no serious injuries were reported. During the first months of the campaign a number of parties also reported that their campaign workers had been harassed by members of the FSLN, or that their posters had been destroyed. The Sandinista leadership denounced these incidents and they seemed to diminish thereafter. In addition, several rallies held by the Nicaraguan Democratic Coordinating Committee (CDN). a coalition of conservative business-oriented parties that abstained from the election, were disrupted by fights between CDN supporters and Sandinista counterdemonstrators. These rallies were technically illegal since the CDN had refused to participate in the election and indeed spent its time during the campaign attacking the electoral system itself. Once the CDN decided to conduct what seemed like a sabotage of the electoral effort (in the eyes of FSLN supporters), clashes with counterdemonstrators were difficult to avoid.

Because of these incidents, Arturo Cruz claimed that he was attacked by ‘mobs’ and that free electoral competition did not exist. It should be recalled that the country is at war and that Cruz openly identified with the enemy and was not at any time functioning as a legal or serious candidate. When Cruz, a banker in Wellington, arrived in Managua five months before the election, the CDN suddenly announced he would be their unified presidential candidate. Without officially registering as a candidate, Cruz toured the country for several days, drawing small crowds As suddenly as he arrived, he left, announcing he would not run under the prevailing electoral conditions. Throughout this period the U.S. media and the U.S. government described him as the “major opposition candidate” and treated his nonparticipation as evidence that the election was an unfair and meaningless exercise. In conflict with this view is the one expressed in the report, cited herein, by U.S. citizens in Nicaragua:

In general, our perception of the electoral campaign period is that the harassment and fistfights were scattered incidents that did not affect the generally free atmosphere of the electoral process. We found our neighbors and co-workers unafraid to voice their opinions, and heard and read virulent criticism of the FSLN. We know of no pressure on Nicaraguan to vote for the Sandinista Front. In particular, we found no truth in the charge made by _La Prensa_ that the cards which entitle families to receive subsidized food allotments were controlled in a concerted effort to influence Nicaraguans” votes. We conclude that the electoral campaign provided Nicaraguans with abundant information on which to base a free decision about their vote.

A similar conclusion was reached by the 460 official observers from all over the world who were free to check out all aspects of the voting process and ballot counting. None of the eleven participating parties filed any charges of fraud.

System of Representation

The FSLN won 64.9% of the vote, a victory that was only a few percentage points higher than the one enjoyed by Ronald Reagan in 1984. The two runner-up parties, both center-rightist, won 13% and 9% respectively. The National Assembly seats were allocated according to proportional representation so that minority parties were assured of 35 of the 96 seats (including six seats that under the electoral law are allotted to the losing presidential candidates of each party). All this was dismissed by Reagan as “an electoral farce without any meaningful political opposition.”

In contrast, the single-member-district electoral system used in the United States is much less representative and therefore less democratic. The party that polls a plurality of the vote, be it 40, 50 or 60 percent, wins 100 percent of a district’s representation, while smaller parties, regardless of their vote, receive zero representation. Proportional representation provides a party with legislative seats roughly in accordance with the percentage of votes it wins, thus assuring minor parties of some parliamentary presence. But the single-member, winner-take-all system magnifies the strength of the major parties and leaves the minor parties with a percentage of seats (if any) that is far lower than its percentage of votes. The winner-take-all system deprives third parties not only of representation but eventually of voters too, since not many citizens wish to “waste” their ballots on a party that seems incapable of establishing a legislative presence

Minorities

There are other criteria by which the American and Nicaraguan democracies might he compared. For instance, there is the treatment of minorities. Much is made of the Sandinistas’ forced relocation of Miskito Indians during a time of serious border attack, a policy that quickly proved not only wrong but in some instances wrongful. Today Managua is now trying to undo its previous policy and resettle the Miskito on their lands, an approach that compares favorably with the U.S. treatment of Native American Indians, to say the least, and with the forced relocation of the Japanese into concentration camps during World War II, uprooting them from California communities, that — unlike Nicaragua — were never threatened by enemy invasion. Nor did the U.S. government ever compensate the Japanese for the losses they sustained in the way of homes, businesses and farms

Political Dissent

There is the more general question of Freedom of communication for dissenting ideas. La Prensa is not the only opposition voice in Nicaragua. About half of the radio and television stations in the country are privately owned and most of these give the government a daily ideological pounding that makes National Public Radio look like the tepid establishment mouthpiece it is. The various political parties also produced their own newspapers during the campaign. There is a war going on in Nicaragua. The country is encircled by hostile forces. has endured invasions on both of its borders and has suffered much loss of life and destruction of property. Yet the censorship imposed is no worse and probably less restrictive than what the U.S. government imposed during World War II, and Managua’s treatment of dissenters and collaborators has been far more tolerant and liberal than the treatment accorded Tory sympathizers during and immediately after the American revolution or dissenters who received long prison terms during World War I.

In the United States, dissenting views that go beyond the mainstream. or even much left of center, are rarely allowed time or space in the major media, but are consigned to small-circulation magazines that teeter on the edge of insolvency. In short, there is a greater plurality of ideas, ideologies, and debate in Nicaragua than in the United States. On this score Nicaragua is a more open, more pluralistic society. It may not always remain so however. Subject to enough threat and siege, assault and murder, the Nicaraguans will start tightening up, choosing security over dissent, survival over pluralism. Indeed, it is miraculous that they haven’t already done so. The signs are there; President Daniel Ortega has said: “In the hardest moments we have to convert the defeats into more ideological unity, more political unity … [and] more organization.” (Miami Herald, August 4, 1985).

If the U.S. Government were really interested in encouraging pluralistic dissent in Nicaragua it would pursue a policy quite the opposite of the one now in the saddle, offering Managua friendship and support and the hope for peaceful independence and security. Democracy is a delicate flower that does not do well when repeatedly stomped upon.

Religious Freedom

The Reagan administration has charged that there is religious persecution in Nicaragua. But the Catholic church is alive and well. Elements of its clergy and laity can be found playing prominent roles on both sides within Nicaragua, struggling hard to build — or destroy — the revolution. Religious practice is not interfered with. The Rev. Miguel Gray, a Nicaraguan Baptist minister, hailed the religious freedom enjoyed in that country and pointed to the building of 19 additional churches since 1979 in a desperately poor country where not too many buildings of any kind are going up.

The level of religious tolerance in the United States today is as good as might be found anywhere. But in recent years the disturbing intolerance manifested by such groups as the Moral Majority, and the President’s open association with the religious Right, including his announcement that “ours is a Christian nation,” might cause us to give more attention to the question of religious tolerance here at home.

Human Needs

If democracy means more than a set of procedures but implies something, about the substantive conditions of life, then here too poor Nicaragua looks better than rich America in the era of Ronald Reagan. Decades of colonialism, Somocista pillaging, earthquake, revolution and counterrevolution, have left Nicaragua with a legacy of extreme poverty, yet the very worst is not happening to the poor citizens of that country as it is to the poor on the streets in Washington D.C.; no one is starving and no one has been tossed aside like so much human refuse.

Finally, in comparing Nicaragua with the United States. we might consider the degree to which each country is interfering with the political development and security of the other. As Reagan himself aptly put it: “Democracies do not spend a lot of money on arms, build large armies or invade or destabilize their neighbors.” With typical Orwellian inversion he was aiming this remark at Nicaragua but it applies most perfectly to hi own administration, which spends more money on arms and more time destabilizing and invading neighbors than we could ever imagine Nicaragua doing. The truth is also inverted when Reagan calls the Sandinistas “terrorists.” To be sure, there is plenty of terrorism going on in Nicaragua and plenty being exported to other countries in Central America, but it is conducted by contra mercenaries and Honduran, Guatemalan, and Salvadoran death squads and military, all financed and advised by the U.S.

Those “democratic socialist” critics on the left, who give qualified and skittish support to Nicaragua, who are quick to point out how they have “problems” with some of the things the Sandinistas are doing, who impose flawless democratic standards upon a tiny country that is under mortal siege from the Yankee Colossus, those critics might want to consider the realities of the situation. It is the United States which should be the object of their professedly democratic concerns; it is the U.S. which falls so dismally short of practicing the democratic pluralism it preaches to others, exporting violence and terrorism and pummeling a smaller neighbor that is trying to develop a democratic society of its own.

If one criterion of democracy is that a country not act like a thug and aggressor in its dealings with another country even to the point of refusing to show up in (world) court to defend itself when so charged — then United States under Reagan comes off looking tar less fair, less open, and less democratic than Nicaragua.

(*) Michael Parenti writes and lectures frequently on U.S. domestic and foreign politics. His most recent book is _Inventing Reality: The Politics of the Mass Media_ (New York: St Martin’s Press, 1986).

Source

The Great Soviet Encyclopedia on the American Revolution

"The Spirit of '76": a painting by Archibald Willard.

“The Spirit of ’76”: a painting by Archibald Willard.

American Revolution

(in Russian, War of Independence in North America of 1775-83), the revolutionary liberation war of the 13 British colonies in North America against British colonial domination, during which an independent state was established—the United States of America.

The American Revolution was prepared for by the entire preceding socioeconomic history of the colonies. The development of capitalism in the colonies and the formation of the North American nation contradicted the policy of the mother country, which considered the colonies a source of raw materials and a market. After the Seven Years’ War (1756-63) the British government intensified its pressure on the colonies, in many ways hindering the further development of industry and trade. The colonization of lands west of the Allegheny Mountains was prohibited (1763), and new taxes and customs duties were introduced, which were contrary to the interests of all the colonists. Separate, uncoordinated uprisings and disturbances, which later developed into war, began in 1767. There was no unity among the participants in the liberation movement. Farmers, artisans, workers, and the urban petite bourgeoisie, who made up the democratic wing of the liberation movement, linked their struggle against the colonial yoke with hopes for free access to land and political democratization. However, the leading position in the camp of the advocates of independence (Whigs) belonged to the representatives of the right wing. They expressed the interests of the upper strata of the bourgeoisie and plantation owners, who were seeking a compromise with the mother country. The opponents of the liberation movement in the colonies and the open supporters of the mother country were the Tories, or Loyalists. Among them were big land-owners as well as persons who were connected with British capital and administration.

The First Continental Congress of representatives from the colonies met in 1774 in Philadelphia and called for a boycott of British goods. At the same time, the congress attempted to reach a compromise with the mother country. During the winter of 1774-75 the first armed detachments of colonists arose spontaneously. In the first battles at Concord and Lexington on Apr. 19, 1775, the British troops suffered heavy losses. Soon 20,000 insurgents formed a so-called camp of liberty near Boston. In the Battle of Bunker Hill on June 17, 1775, the British again suffered serious losses.

On May 10, 1775, the Second Continental Congress convened; the predominant influence in it was gained by the radical wing of the bourgeoisie. The congress proposed that all the colonies create new governments to replace the colonial regime. Regular armed forces were organized, and Washington was made commander in chief (June 15, 1775).

On July 4, 1776, the Continental Congress adopted the revolutionary Declaration of Independence, which was written by Jefferson. The declaration proclaimed the separation of the 13 colonies from the mother country and the formation of an independent state—the United States of America (USA). It was the first legal document in history that formally proclaimed the sovereignty of a people and the principles of bourgeois democratic liberties. The decrees on the confiscation of Loyalists’ property (1777) and lands belonging to the crown and the Anglican Church were very significant.

Military action during 1775-78 unfolded primarily in the northern part of the country. The British command endeavored to suppress resistance in New England, which was the center of the revolutionary movement. An American expedition to capture Canada did not achieve its intended goal. The Americans besieged Boston and captured it on Mar. 17, 1776. However, in August 1776 the British commander W. Howe inflicted a grave defeat on Washington’s troops in Brooklyn, and on September 15 he captured New York. In December the British Army inflicted another serious defeat on the Americans near Trenton. Although Washington soon succeeded in capturing Trenton and routing a British detachment at Princeton on Jan. 3, 1777, the position of the American army remained difficult.

The armies that were encountering each other in the American Revolution differed in their composition, equipment, and combat experience. The American insurgent army was initially an ill-trained and poorly organized people’s militia. However, the morale and political level of its soldiers, who were fighting for their own land and vital interests, was considerably higher than the British Army’s. By improving their tactics in waging war, the rebels were able to achieve important advantages. Avoiding major battles and cooperating with partisan detachments, the American army harassed the enemy with sudden thrusts. The American army was the first to use the tactics of an extended formation, against which the linear combat formation of the British proved powerless. At sea, where the British Navy prevailed, American ships also used the tactics of sudden raids, attacking British ships and carrying out campaigns near the shores of Great Britain.

The weakness of central authority in the republic played a considerable role in prolonging the war. The first constitution of the USA, the Articles of Confederation, which was adopted by the congress in 1777 and ratified by the states in 1781, preserved the sovereignty of the states on the most important questions. In addition, the War of Independence was a class struggle within the colonies themselves. Tens of thousands of Loyalists fought in the British Army. The bourgeoisie and plantation owners, who were leading the struggle for independence, were opposed to carrying out the democratic demands of the soldiers, farmers, and workers. The victory of the revolution was possible only because of the participation of the broad masses of the people. Among the poor of New England egalitarian demands ripened for a limit on property ownership and the introduction of ceiling prices on foodstuffs. The Negro people took an active part in the revolution, and Negro regiments were established.

The British plan of military action in 1777 was to cut New England off from the other states. On Sept. 26, 1777, Howe captured Philadelphia, the capital of the USA. However, a British army under the command of J. Burgoyne, which was proceeding from Canada to join Howe, was surrounded, and it surrendered on Oct. 17, 1777, at Saratoga. The victory at Saratoga, which was won by American troops under the command of General H. Gates, improved the international position of the young republic. The USA managed to take advantage of the contradictions between Great Britain and other European powers. Sent to Paris as the representative of the USA, B. Franklin concluded a military alliance in 1778 with France—Great Britain’s colonial rival. In 1779, Spain joined the war against Great Britain. Russia took a friendly position toward the USA, and in 1780 it headed the so-called League of Armed Neutrality, which brought together a number of European countries who were opposed to Great Britain’s attempt to prevent neutral countries from trading with Britain’s enemies.

In June 1778, General H. Clinton, who had replaced Howe, abandoned Philadelphia. During 1779-81 the British shifted their military activity to the southern states, counting on the support of the plantation aristocracy. In December 1778 they captured Savannah, and in May 1780 they took Charleston. The talented general and former blacksmith N. Greene was made head of the southern American army. In fighting against the British troops Greene successfully combined the action of the insurgent army and the partisans. The British were compelled to withdraw their troops to the port cities. After a naval battle of Sept. 5-13, 1781, the French Navy cut the main British forces off from the sea at Yorktown. Washington surrounded them on land, and on Oct. 19, 1781, he forced them to surrender. Under the Versailles Peace Treaty of 1783, Great Britain recognized the independence of the USA.

The American Revolution was a bourgeois revolution that led to the overthrow of the colonial yoke and the formation of an independent American national state. The former prohibitions by the British Parliament and royal authority, which had hampered the development of industry and trade, were abolished. Also eliminated were the large estates of the British aristocracy, as well as vestiges of feudalism (fixed rent, entail, and primogeniture). In the northern states Negro slavery was limited and gradually eliminated. The transformation of the western lands, which had been expropriated from the Indians, into national property by the Ordinance of 1787 and their subsequent distribution created a base for the accumulation of capital. Thus, the essential prerequisites for the development of capitalism in North America were created. However, not all the problems that confronted the American revolution were resolved. Slavery was not abolished in the South, and a high property qualification for voters was maintained in all the states. The estates of Loyalists and western lands were distributed in large pieces, and they fell into the hands of speculators.

The American Revolution, which in its own time was the model of a revolutionary war, exerted an influence on the struggle of the European bourgeoisie against feudal absolutist regimes. Approximately 7,000 European volunteers fought in the ranks of the American army, including the Frenchmen the Marquis de Lafayette and H. Saint-Simon and the Pole T. Kosciuszko. During the Great French Revolution the insurgents made use of the organizational experience and revolutionary military tactics of the Americans. The victory of the North Americans in the American Revolution promoted the development of the liberation movement of the peoples of Latin America against Spanish domination. The revolution was hailed by the progressive people of many countries, including Russia, where A. N. Radishchev celebrated it in the ode “Liberty.”

REFERENCES

Marx, K. Kapital, vol. 1, ch. 25. In K. Marx and F. Engels, Soch., 2nd ed., vol. 23.
Engels, F. “Rabochee dvizhenie v Amerike.” Ibid., vol. 21.
Engels, F. F. A. Zorge, 31 dek. 1892. (Letter.) Ibid., vol. 38.
Engels, F. N. F. Daniel’sonu, 17 okt. 1893. (Letter.) Ibid., vol. 39.
Lenin, V. I. Novye dannye o zakonakh razvitiia kapitalizma v zemledelii, part 1: “Kapitalizm i zemledelie v Soedinennykh Shtatakh Ameriki.” Poln. sobr. soch., 5th ed., vol. 27.
Lenin, V. I. “Pis’mo k amerikanskim rabochim.” Ibid., vol. 37.
Lenin, V. I. “Agrarnaia programma sotsial-demokratii v pervoi russkoi revoliutsii 1905-1907 godov.” Ibid., vol. 16.
Ocherki novoi i noveishei istorii SShA, vol. 1. Moscow, 1960.
Foner, P. Istoriia rabochego dvizheniia v SShA, vol. 1. Moscow, 1949. (Translated from English.)
Foster, W. Negritianskii narod v istorii Ameriki. Moscow, 1955. (Translated from English.)
Fursenko, A. A. Amerikanskaia burzhuaznaia revoliutsiia XVIII v. Moscow-Leningrad, 1960.
Aptheker, H. Istoriia amerikanskogo naroda [vol. 2], Amerikanskaia revoliutsiia 1763-1783. Moscow, 1962. (Translated from English.)
The American Nation: A History, vols. 8-10. New York [1933].
Bemis, S. F. The Diplomacy of the American Revolution. New York, 1935.
Hardy, J. The First American Revolution. New York, 1937.
Morais, H. The Struggle for American Freedom. New York, 1944.
Jensen, M. The New Nation: A History of the United States During the Confederation, 1781-1789. New York, 1950.
Gipson, L. The Coming of the Revolution, 1763-1775. New York, 1954.

I. I. DEMENT’EV

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.

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

The Great Soviet Encyclopedia on the Civil War in the United States (1861–65) and the Reconstruction of the South

Union and Confederate troops clash at the Battle of Franklin in Tennessee, 1864.(Library of Congress/Kurz and Allison)

Union and Confederate troops clash at the Battle of Franklin in Tennessee, 1864. (Library of Congress/Kurz and Allison)

The following article is from The Great Soviet Encyclopedia (1979).

Civil War in the United States, 1861–65, and the Reconstruction of the South

The Civil War in the United States was a natural result of the sharp worsening of antagonistic economic and political contradictions between the capitalist North and the slave-owning South.

By the mid-1850’s a revolutionary situation had begun to take shape in the United States. It became more and more evident that the contradictions between the two social systems would inevitably develop into an armed struggle for power and for the nationwide victory of one of the social systems. Slavery had become the main obstacle to the development of capitalism in the United States, and the necessity of destroying it had become inevitable. Civil war in Kansas (1854–56), the insurrection led by John Brown in 1859, and the intensified movement for the abolition of slavery were evidence of the approach of a sharp conflict.

In 1860, A. Lincoln, the candidate of the Republican Party, was elected president of the United States. For the Democratic Party, in which slave owners had a very strong influence, his election meant loss of power on a national scale. In response to Lincoln’s election, the slave owners proclaimed the secession of the southern slave-owning states from the Union and began to prepare for civil war. In February 1861 in Montgomery, Alabama, the Confederacy of slave-owning states was formed and joined by 11 of the 34 states. In April 1861 the troops of the Confederacy began the rebellion and captured forts and arsenals in the South, where the major part of weapons and ammunition had been concentrated as early as J. Buchanan’s presidency. Only Fort Sumter in South Carolina offered resistance, but after two days it surrendered on April 14.

The theater of military action was an enormous territory bordered on the north and west by the Potomac, Ohio, and Missouri rivers, on the east by the Atlantic Ocean, and on the south by the Gulf of Mexico. The northern states had a population of 22 million. The North was covered with a dense rail network and had well-developed industry, including almost all the metallurgical, textile, and arms industries of the entire nation. About 9 million people lived in the territory of the southern states, including 4 million Negro slaves. A significant part of the population of the southern states did not support the rebels. The South did not have the essential economic base for waging a prolonged war. There were considerably fewer cities and railroads in the South than in the North. Combat operations were waged primarily along railroads and rivers, which made it easier to move and supply troops.

The size of the regular US Army was only 14,000–16,000 men. They were scattered along the western borders, where they were used primarily to pacify the Indians, and they did not represent a serious fighting force. At the beginning of the war a significant number of the officers were from slave-owning families and went over to the Confederate side. Among them was the capable general R. Lee, who became commander of the South. When war broke out, President Lincoln declared a call-up of 75,000 volunteers, and later a draft was instituted. In turn, the president of the Confederacy, J. Davis, drafted 100,000 men into the army at the beginning of the war. For the entire period of the war 2.7 million were drafted into the army of the North, and 1.1 million into the army of the South. The basic unit was the infantry division, which consisted of three brigades of two regiments each. (A regiment had ten companies of 80–100 men each.) A corps was made up of two to three divisions, and two to five corps were consolidated into an army.

The war plan of the southern slave owners was adventuris-tic. It was calculated to take advantage of surprise and to use aid from Great Britain and France. The South intended to capture quickly the states of Missouri, Tennessee, and Virginia and then to attack Washington, D.C., and force the government to accept the slave owners’ conditions. The North’s plan was for passive defense. At first the North intended to restrict its troops to defense and to wage particular operations in which the troops who were being raised would gradually be prepared for offensive action.

The main issue of the Civil War was slavery. The rebel slave owners endeavored to preserve slavery as a social system and spread it to the entire territory of the USA and in the future even to the countries of South America. At the beginning of the war the Lincoln administration saw as its primary task the restoration of the Union and prevention of the spread of slavery to the new territories.

In the first stage of the war (1861–62) the North suffered a series of grave defeats. In the first period the combat operations of the main forces unfolded in the Washington-Richmond axis. In mid-July 1861 the 35,000–man army of the North led by General I. McDowell invaded Virginia and reached the Bull Run River, which at the same time was approached by a 31,000–man army of the South commanded by General Lee. In the battle of Manassas (or Bull Run) on July 21 the poorly armed and trained Northern troops were routed, and they retreated to Washington, D.C., in disorder. However, the Southerners did not take advantage of their success.

The Northern command directed its primary attention to forming a large army and establishing defensive structures. A new strategic plan was developed, the Anaconda Plan, which envisioned the establishment of a ring of army and naval forces around the southern states. This ring would be tightened gradually until the rebels were finally suppressed. Marx and Engels were severely critical of this plan, describing it as a “rebirth … of the so-called cordon system, which was used in 1792–97 against the French with such stubbornness, and always without success” (Soch., 2nd ed., vol. 15, pp. 505–506). They believed that the main thrust should be delivered against the state of Georgia. The capture of Georgia would have split the territory of the Confederacy into two isolated parts, deprived the Confederacy of economic resources, and brought the 500,000 Negro slaves in Georgia into the struggle (ibid., pp. 506–507).

In April 1862 the 100,000–man army of the North commanded by the untalented General G. McClellan again began an attempt to capture Richmond, attacking from Fort Monroe. However, at the approaches to the capital of the southern states, McClellan’s army encountered a well-prepared system of engineer fortifications. In the battle of June 26–July 2 on the Chickahominy River east of Richmond, the Northerners were defeated by an 80,000–man army of the South, and they retreated toward Washington, D.C. In September 1862, General Lee attempted to capture Washington, D.C but after an initial success (the so-called second battle of Manassas or Bull Run on August 30), he was unable to achieve victory at Antietam (September 16–17), and he was forced to retreat beyond the Potomac. The attempt of the army of the North to go over to a new offensive against Richmond was also unsuccessful; on December 11–13 the Army of the Potomac under General J. Hooker was defeated at Fredericksburg. Between June and November 1862 the Southern command made several cavalry raids under T. Jackson and J. Stuart in order to strike the enemy from the rear, but these raids did not produce the desired results.

In the western and southern parts of the Mississippi Valley military actions had a local character. Northern troops under the command of generals U. Grant and B. Butler, supported by Admiral D. Farragut’s squadron, took Memphis. Corinth, and New Orleans. The successful blockade of southern ports by the fleet of the North, which deprived the Confederacy of communications with Great Britain and France, was very important. Actions by the South’s cruisers, including the Alabama, inflicted substantial losses on the North’s merchant fleet but did not have a major influence on the course of the war.

The successes of the rebels are partially explained by their being better prepared for war. However, the main reason for the military defeats of the North was that the bourgeoisie of the North was afraid to rely on the popular masses in the struggle with the slave owners. Influential bourgeois circles in the North continued to seek ways to solve the conflict by compromise. This policy was completely hopeless from a military and a political point of view. Noting the decisive demands of the popular masses in the North to switch to revolutionary methods of waging war, Marx wrote: “If Lincoln does not give in (but he will give in), there will be a revolution” (ibid., vol. 30, p. 222). Marx expressed his firm belief that “waging war in a revolutionary way still lies in the future” (ibid., vol. 15, p. 542).

Marx’ prediction proved to be entirely correct. In 1862, under the pressure of the popular masses and military failures. Congress implemented a number of measures for the purpose of switching to revolutionary methods of waging war. A law was published confiscating the property of rebels, and the death sentence was instituted for treason against the United States. Especially important were the Homestead Act, which was adopted on May 20, 1862, and Lincoln’s proclamation liberating the Negro slaves in the rebel states. which went into effect on Jan. 1. 1863. The slaves were freed without land and without compensation to their owners.

In 1863 a new stage in the war began, which was characterized by important changes in the entire course of the country’s political life and in the strategy and tactics of the Union Army. The political activism of the popular masses increased in the North, and a number of serious attacks were made on counterrevolutionary forces. The Union Army was replenished with new worker regiments. About 190.000 Negroes. 72 percent of them from the southern states, entered the army of the North, and 250.000 Negroes served in rear units.

At the beginning of the second stage of the war (1863–65) the South still held the initiative. On May 2–4, 1863. northern troops were defeated again at Chancellorsville, but the turning point of the war followed this defeat.

In June 1863, General Lee’s 64,000–man army began to advance into Pennsylvania, and Stuart’s cavalry was sent on a deep raid. The Southerners were met by General G. Meade’s 85,000–man army. In an encounter battle at Gettysburg on July 1–3 the army of the South, deprived of cavalry support, suffered a serious defeat. A major success was achieved in the Mississippi Basin, where Grant’s army captured the upper reaches of the river and then besieged and forced the surrender of the fort at Vicksburg (July 4. 1863). The entire line of the Mississippi passed to the control of the North, and the territory of the Confederacy was split into two parts. The decisive role in achieving these successes was played by the farmers, workers, and artisans who poured into the army, fought selflessly, and gave an active character to combat operations. Negroes played an important part in the struggle against the army of the South: they did reconnaissance, attacked southern troops from the rear, and served as guides. The government of the Confederacy was forced to assign 100.000 soldiers to fight rebellious slaves.

The combat operations of the North during 1864–65 were decisive and had the character of maneuvers. General Grant, who was appointed general-in-chief in March 1864, developed a new strategic plan. General Meade’s 122,000–man Army of the Potomac would attack the South from the north, destroy the main forces of General Lee’s army, and capture Richmond. General W. Sherman’s 100,000–man army would attack from west to east against General J. Johnston’s army, which was covering the central region of the Confederacy, and would deliver a thrust against the most important economic centers of the South. At the same time. General Butler’s 36,000–man army would attack Richmond from the east. The offensive began in the first days of May 1864. Meade’s army approached Richmond but was unable to capture the city. Relying on fortified positions, the enemy offered desperate resistance and at the same time attempted to deliver a thrust against Washington, D.C. However, on Sept. 19, 1864, this attack was defeated at Winchester.

Workers of many nationalities participated on the side of the North in the Civil War, as did many revolutionaries who had emigrated to the United States from Europe (for example, J. Weydemeyer and G. P. Cluseret). The North was actively supported by the English workers, who offered decisive resistance to attempts by the British government to intervene in the Civil War on the side of the slave owners. As the war progressed, the economic and military superiority of the North was increasingly evident. The international position of the Lincoln government also grew stronger. Russian policy promoted this to a significant degreee. Russia had an interest in the existence of a unified United States opposed to Great Britain and France, which were then tsarist Russia’s chief rivals. The arrival of two Russian squadrons in September-October 1863 in New York and San Francisco was interpreted in the United States and Western European countries as a demonstration of friendship toward the Lincoln government.

The transition to revolutionary methods of waging war significantly strengthened the position of Lincoln, who was reelected president in 1864. The armies of the North continued their successful offensive operations. The “march to the sea” by General Sherman’s army was particularly important. Pursuing the retreating enemy, Sherman’s army took Atlanta on Sept. 2, 1864, and on December 21 it took Savannah and reached the Atlantic Ocean. Then Sherman turned north and on Feb. 18, 1865, captured Columbia, reaching the rear units of Lee’s army, whose position had become hopeless. On Apr. 3, 1865, Grant’s troops took Richmond. Lee’s army began to retreat to the southeast, but it was overtaken and surrounded by Grant at Appomattox. On April 9, General Lee surrendered, and on April 26, General Johnston’s troops surrendered. The remaining troops of the South had ceased resistance by June 2. The war ended with the complete defeat of the slave owners.

On Apr. 14, 1865, exactly four years after the Civil War had begun, President Lincoln was mortally wounded by the actor Booth, an agent of the slave owners and reactionary circles in the North. Lincoln’s death was a grave loss for all of progressive America.

The Civil War was bloody and expensive. The North lost 360,000 men, who were killed or who died from wounds and diseases, and the South lost at least 250,000. About 1 million soldiers and officers of the North and South were wounded. Military expenditures and destruction were assessed at many billions of dollars. However, the sacrifices were not in vain. As V. I. Lenin noted, the Civil War in the United States had “very great progressive and revolutionary significance in world history” (Poln. sobr. soch., 5th ed., vol. 37, p. 58).

The Civil War in the United States reflected new phenomena in the development of the art of war. It was distinguished by its large scope and by the participation in it of enormous armies. The transition to revolutionary methods of waging war gave combat operations an active and decisive nature, which decided the victory over the South in advance. Railroads, a steam-powered navy, and riverboats were used extensively in the war. The invention of the telegraph made it possible to maintain operational control of troops over significant distances. The large scope of the armed struggle and significant losses made it necessary to train reserves and establish reserve supplies. The development of the rifled firearm and its increased speed of fire, accuracy, and range led to large losses in the battle formations of troops who attacked in dense, deep columns. Static forms of battle and engineer preparation of the terrain became widespread. Heavy artillery preparation to neutralize enemy fire was required to overcome a defense equipped with trenches, dugouts, and barriers. Combat operations at sea were characterized by the blockade of the coast and the most important ports, and naval battles became artillery contests. The war gave impetus to the development of an armored fleet.

The working masses played the decisive role in crushing the slave owners, but the fruits of victory were enjoyed primarily by the bourgeoisie, which achieved its main goals. Slavery, which had hindered the development of capitalism, was abolished. Favorable conditions were established for the development of capitalism in agriculture by individual farmers—that is, by the American method. The creation of a single national market was begun and control over the entire economic and political life of the country was concentrated in the hands of the bourgeoisie. However, a powerful workers’, farmers’, and Negro movement threatened the dominance of the bourgeoisie. Under these conditions there appeared a clear-cut policy of concluding a class alliance between the bourgeoisie and the plantation owners, directed against the working people.

Reactionary circles in the North and South were especially disturbed by events that unfolded in the southern states. Led by the Radical Republicans, the Negroes and some of the poor whites began an organized struggle to obtain land for themselves and to win the right to vote for the former slaves. A true battle began in the southern states between the Negroes and bands of the Ku Klux Klan, a terrorist organization founded in the South in 1865. The struggle of the Negroes to win equal rights with whites was revolutionary. It developed under very difficult conditions, because the federal government acted as an ally of the plantation owners. In order to thwart the movement of the popular masses in the South, A. Johnson, who became president of the United States after the assassination of Lincoln, advanced a program that amounted to a formal recognition by the former rebel states of the abolition of slavery. At the same time, under Johnson’s plan all power in the South would remain in the hands of the former slave owners. Amnesty was granted to thousands of active participants in the rebellion. By February 1867 property valued at 2 billion dollars had been returned to the plantation owners. The Negroes did not receive any rights, and they became landless agricultural workers.

Having consolidated their economic and political position in the South, the plantation owners raised the question of restoring slavery and openly laid claim to participation in federal governmental bodies. This was already a direct attempt to change the results of the Civil War, and it was an open threat to the bourgeois monopoly of state power. The Negroes offered fierce resistance to the former slave owners’ offensive. Leagues of alliance, which united Negroes and poor whites, created armed detachments, consisting primarily of Negroes. They were the bulwark of the revolutionary movement in the South. These detachments played an important part in implementing the Radical Reconstruction of the South, the beginning of which was marked by the First Reconstruction Act of Mar. 2, 1867.

The purpose of Radical Reconstruction was to carry out bourgeois-democratic reforms in the South and restrict the power of the former slave owners. All power in the South was transferred to the federal army. Active participants in the rebellion were deprived of all political rights. More than 1 million Negroes received the right to vote. The transition to Radical Reconstruction was brought about not only by the Negro struggle against the plantation owners but also by major changes that were taking place in the North. In December 1865, Congress officially sanctioned the emancipation of the Negroes by ratifying the Thirteenth Amendment to the Constitution, and in June 1866 the Fourteenth Amendment to the Constitution recognized the right of Negroes to vote.

With the participation of Negro voters, in the summer of 1867 constitutional assemblies were elected, which adopted new bourgeois-democratic constitutions for the southern states. The socioeconomic system of the southern states began to be restructured on new, bourgeois principles. The Negroes were an important moving force in the Reconstruction. In a number of cases they seized the lands of plantation owners, and they participated actively in the work of local governmental agencies. For the first time in the history of the country, 16 Negroes were elected to the US Congress. During Reconstruction the Negroes made great progress in public education. The number of Negro students increased more than 500 times in comparison with 1860 and reached 500,000 by the end of Reconstruction. Significant gains were made in the development of industry, transportation, trade, and organization of public services in populated areas.

However, the agrarian question remained unresolved, just as it had been during the Civil War. The overwhelming majority of the Negroes and poor whites remained in the position of agricultural workers and sharecroppers without any rights. The workers’ and farmers’ movement of the North and West did not give direct support to the revolutionary struggle of the Negroes in the South. Without this support the Negro movement was doomed to failure. This was in fact its fate. Taking advantage of racial prejudices, the plantation owners were able to split the united front of the Republicans in the South and begin taking power in one southern state after another. By 1877 the Republicans held power in only three southern states. In April 1877 the federal government withdrew its troops from these states, and power in them was immediately seized by the plantation owners. The withdrawal of federal troops from the southern states was a direct betrayal by the Northern bourgeoisie of its Negro allies. This traitorous act marked the end of the Reconstruction of the South.

Despite the restoration of the power of the plantation owners in the South, Reconstruction played an important, positive role in the history of the South and the entire country. The revolutionary struggle of the Negroes and their white allies thwarted plans to reestablish slavery in the South. The restructuring of the southern states in the interests of capitalist development completed the process of establishing a single national market. The active participation of broad popular masses in Reconstruction as well as the revolutionary methods of struggle to which they resorted gave Reconstruction a bourgeois-democratic revolutionary character. During Reconstruction attempts were made to solve problems that the Civil War had been unable to resolve. For this reason, Reconstruction is viewed as a continuation of the Civil War and as the second phase of the bourgeois-democratic revolution of 1861–77. However, unlike the Civil War, the period of Reconstruction was not marked by the formation of a united front of northern workers and farmers and southern Negroes. The active role of the popular masses and the results achieved were significantly less under Reconstruction than during the Civil War. Reconstruction was a descending stage in the second American revolution.

REFERENCES

Marx, K. “Amerikanskii vopros v Anglii.” In K. Marx and F. Engels, Soch. 2nd ed., vol. 15.
Marx, K. “Grazhdanskaia voina v Severnoi Amerike.” Ibid.
Marx, K. “Grazhdanskaia voina v Soedinennykh Shtatakh.” Ibid.
Marx, K. “Otstranenie Frimonta.” Ibid.
Marx, K. “Anglo-amerikanskii konflikt.” Ibid.
Marx, K. “K kritike polozheniia v Amerike.” Ibid.
Engels. F. “Uroki amerikanskoi voiny.” Ibid.
Engels, F. “Bronenosnye i tarannye suda i grazhdanskaia voina v Amerike.” Ibid.
Marx, K., and F. Engels. “Grazhdanskaia voina v Amerike.” Ibid.
Engels. F. K. Marksu, 3 iulia 1861 g. i 30 iulia 1862 g. (Letters.) Ibid., vol. 30.
Lenin, V. I. “Novye dannye o zakonakh razvitiia kapitalizma v zemledelii.” Poln. sobr. soch., 5th ed., vol. 27.
Lenin, V. I. “Pis’mo k amerikanskim rabochim.” Ibid., vol. 37.
Lenin, V. I. Ibid., vol. 17, p. 129; vol. 22, p. 345; vol. 23, p. 128; vol. 30, p. 354.
Foster, W. Negritianskii narod v istorii Ameriki. Moscow, 1955. (Translated from English.)
Foster, W. Ocherk politicheskoi istorii Ameriki, 2nd ed. Moscow, 1955.
Allen. J. Rekonstruktsiia: Bitva za demokratiiu v SShA, 1865–1876. Moscow, 1963. (Translated from English.)
K stoletiiu grazhdanskoi voiny v SShA. Moscow, 1961.
Ivanov, R. F. Grazhdanskaia voina v SShA (1861–1865). Moscow, 1960.
Ivanov, R. F. Bor’ba negrov za zemliu i svobodu na iuge SShA (1865–1877). Moscow, 1958.
Ivanov, R. F. Linkol’n i grazhdanskaia voina v SShA. Moscow, 1964.
Kuropiatnik, G. P. Vtoraia amerikanskaia revoliutsiia. Moscow, 1961.
Blinov, A. I. Kriticheskii period istorii Soedinennykh shlatov: Rekonstruktsiia (vosstanovlenie Soiuza) SShA posle okonchaniia grazhdanskoi voiny (1865–1877).[Krasnoiarsk] 1957.
Blinov, A. I. Period revoliutsionnoi diktatury radikal’nykh respub-likantsev vo vremia rekonstruktsii SShA (1866–1868). Krasnoiarsk, 1960.
Dement’ev, I. P. Amerikanskaia istoriografiia grazhdanskoi voiny v SShA (1861–1865). Moscow, 1963.
Malkin, M. M. Grazhdanskaia voina v SShA i tsarskaia Rossiia. Moscow-Leningrad, 1939.
Gausman, I. Voina v Soedinennykh Shtatakh Ameriki 1861–1865 gg., vols. 1–2. St. Petersburg, 1877–78.
Vigo Rusi Ton. F. P. Voennye sily Severo-Amerikanskikh shtatov: Voina za nerazdel’nosi Soiuza 1861–1865. St. Petersburg. 1868.
Danilov, N. A. Kampaniia Granta 1864 i 1865 gg. St. Petersburg, 1899.
R. F. IVANOV

The Great Soviet Encyclopedia, 3rd Edition (1970-1979). © 2010 The Gale Group, Inc. All rights reserved.

Statement of the Plenary of the ICMLPO: Twenty years on the road of struggle and unity for the Revolution and Socialism

cipoml-festa-20-anos

I

The Plenary session of the International Conference of Marxist-Leninist Parties and Organizations (ICMLPO) to mark its 20th anniversary, met in Turkey to discuss important issues of the international situation, of political work, of the question of the Popular Front, and of the orientation for activity with working and communist women in their respective countries.

The meeting emphasized the commitment to continue the struggle against capitalism, imperialism and the international bourgeoisie, and adopted decisions on the current situation of the class struggle in the world and the tasks of the working class.

The plenary of the ICMLPO denounces all forms of injustice, reduction and freezing of wages, the policy of the imperialist monopolies and their governments, the accumulation of capital on the basis of imposing more taxes and raising the prices of goods and services, policies that are provoking rebellion and struggles of the working class and the peoples.

II

The defenders of the capitalist-imperialist system launched the idea that a democratic and prosperous world, without crises and wars, was possible. They claimed that capitalism was the only way to achieve the objectives and aspirations of the peoples. However, undisputable facts show, once again, that capitalism cannot provide any better future for the working class, the workers and the peoples.

The productive forces, industrial production and services are developing constantly. The development of these productive forces can no longer be contained within the framework of the capitalist relations of production. At present, the level of the contradiction between socialized production and capitalist appropriation of the means of production surpasses all previous times in history. Finance capital, which imposes parasitism and corruption that generate super-profits in the capitalist metropolises has developed and spread to the farthest corners of the world.

Outsourcing and fragmentation of the time and place of the labor processes and flexible working hours have become general. However, they have imposed disorganization, low wages, primitive conditions of work, unemployment and layoffs that are increasing; capitalist exploitation is growing. The intensification of exploitation and the profits of monopoly capital, the worsening of working and living conditions, are the main factor of the contradiction between labor and capital.

The development of capitalism means poverty alongside wealth and increased inequality in distribution. Impoverishment and misery are spreading. Even in the developed capitalist countries of Europe, the number of homeless families is increasing, begging is spreading and the search for food thrown away in garbage cans is becoming usual. Hunger has spread to other places, beyond the regions of endemic drought and famine in Africa.

As a consequence of capitalism the deterioration and exploitation of the environment is becoming so serious that it cannot be ignored: soil erosion, water and air pollution, the destruction of nature by the unbridled pursuit of profit, has reached high levels, has caused major climate changes that threaten the future of human beings and other living species.

The inter-imperialist contradictions and competition are leading to a renewal of economic and commercial alliances which constitute a new offensive against the living standards of the workers and peoples. Agreements such as the Asia-Pacific bloc, the BRICS under the leadership of China and Russia, the Free Trade Agreement between the United States and the European Union, are part of the effort of the imperialists and bourgeois governments to seek new areas of influence for their capital and to further exploit the working class and increase the oppression of the peoples.

The capitalist crisis that broke out in 2008, which began in the US, affected all countries. It destroyed productive forces. The imperialist and capitalist countries through their governments initiated a policy of corporate bailout using billions of dollars and euros for this purpose. These funds were taken from the public treasury, from the workers and peoples through taxes; they led to a reduction in wages, to unemployment and cuts to social security among other measures. Thus the bourgeoisie has shown once again its hostile and contemptuous attitude to the working classes. In various countries, more than 10 million workers were made unemployed; their salaries were reduced to as little as one third; their retirement age was increased; their pensions were drastically decreased.

All this shows that capitalism lacks a humane conscience. While the centralization of capital increases, the full weight of the crisis lies on the workers and oppressed peoples, with very severe results, particularly in unemployment, among the women and youth.

III

The economies of the US and some European countries, where a process of relative recovery and revival began in 2009, have failed to maintain this; now signs of a new crisis are arising. The debts incurred by the States to carry out the bailouts of corporations in 2008 represent a heavy burden on the economies of the capitalist countries. Except for China, all the countries are in debt.

Currently, one sees a decline in growth rates and also signs of recession. Moreover, the economies of several countries are showing a negative growth.

The figures for unemployment and poverty are alarming. According to data of the International Labor Organization, there are 202 million unemployed worldwide. Poverty rates for 2013 show that there are 1,000 million people whose daily income is less than $1 while 2,800 million people have daily incomes of less than $2.

There are 448 million malnourished children; each day 30,000 children die from lack of treatment for curable diseases.

Emigration has reached unprecedented levels. Hoping to reach the developed countries, to achieve a better life, a job to earn a living, millions of people emigrate from the dependent countries, where there is poverty caused by imperialist plunder and where regional wars persist.

A large number of these people (including women and children) die before they get where they wanted to go. Those who do make it become victims of discrimination, racist and xenophobic attacks, of the most precarious conditions of work with the lowest wages.

IV

The contradictions among the imperialists are sharpening and inter-imperialist contention is growing.

The claims of those who advocate “globalization,” based on manipulating the development of the trend towards integration of the world economy, say that “the old imperialism no longer exists,” that “the analysis of imperialism is obsolete, surpassed.” All this is nothing but propaganda of the imperialists themselves.

The hegemony of finance capital, whose networks continue to expand worldwide, financial speculation for the purpose of the monopoly looting, including the maximum advantage of state resources, are real and its existence needs no proof.

On the one hand, the number of millionaires is increasing daily, as are the profits of the monopolies and investment banks. On the other hand, the working masses and workers are growing constantly, but their working conditions are worsening and their poverty is deepening. These are also facts that do not need proof.

The regional wars and imperialist interventions are continuing; the contradictions and struggle for hegemony among the imperialist states are sharpening. One cannot say that the reactionary bourgeois and imperialist states only act outside their country, only through expansion, without recognizing the consolidation of the “home front”; the expansion of imperialism is also carried out through the exploitation of the working class in their own countries.

After the defeat of the workers’ movement and the demise of socialism, the world has become a place for bourgeois political relations, a completely reactionary world.

The norms of the so-called “welfare state” were considered unnecessary and rapidly “neoliberal” political measures were applied. The bourgeoisie, with its triumph over and disorganization of the workers’ movement, is carrying out an increasingly reactionary offensive in all countries.

Bourgeois democracy, whose duplicity and formal nature is undisputable on the issue of equality and freedom, has become even more reactionary with the “neoliberal process.”

Reaction is attacking all ideological, political, cultural, moral and legal spheres. The growth of conservatism together with medieval “values” is the defining feature of current development. Organizations such as Al Qaeda and the Islamic State, which have become strengthened under these circumstances, have become useful tools of the international bourgeoisie and imperialism.

Imperialism and financial capital support this reaction, particularly in its medieval form, and are making it into the fundamental basis of their hegemony. Even the capitalist countries where bourgeois democracy is relatively advanced are showing fascist trends and a police state. In recent times, there have been the lessons learned by events in Ukraine, which highlight the limits of bourgeois democracy.

In Ukraine, a center of conflicts between the imperialist powers, the developed capitalist countries that were considered the “cradle of advanced democracy” have no qualms about openly supporting neo-Nazi and fascist forces.

V

The struggle of the workers and peoples is the other side of the coin.

The anger and discontent, accumulated due to the cruelty of the socio-economic offensive of monopoly reaction, has provoked popular uprisings and mass struggles. The last years are filled with examples of popular movements that emerged in response to the offensive of reaction, of the international bourgeoisie and imperialism.

These popular demonstrations, strikes and massive protests, the uprisings and rebellions, although they have not yet managed to undermine the reaction of the bourgeoisie, show the prospects for development in the near future.

In the Middle East, divided by artificial borders by imperialism and its allies, which do not recognize the right of self-determination of the peoples, the “status” formulated one hundred years ago is disintegrating.

Syria, a country that has lost its territorial integrity, is seeking its future with the end of the civil war. Clearly, Iraq, a country that has never become firmly organized and integrated, influenced by the Syrian civil war, cannot continue as it has until today. The future of this country will be determined by the struggle of the Iraqi people of all faiths and nationalities, who have been dragged into conflicts and sectorial and ethnic divisions.

The future of Egypt is linked to the outcome of the struggle between the people and national and international reaction.

The Kurdish people have taken important steps to determine their own future, establishing democratic mandates in three cantons; joining with the nations of Rojava (Western Kurdistan).

The struggle of the Palestinian people for self-determination and to organize themselves as a state is continuing despite the Israeli Zionist offensive.

Strikes and protests in Spain, South Africa, Portugal, Belgium, Italy and France, have emerged as new and dynamic subjects of the struggle.

In Tunisia, the struggle for rights and freedoms is growing and the Popular Front is being strengthened.

The people of Burkina Faso are carrying out a revolutionary struggle to take their future into their own hands, defeating one dictatorship after another.

In the Arab countries of the Middle East and North Africa, the peoples are fighting against religious reaction and the governments allied to imperialism.

In Turkey, the resistance of Gezi in June, in Taksim; in Brazil the protests against rising fares; in Chile the student demonstrations have increased the confidence of young people in themselves; they are demanding democracy and freedom.

The struggles that emerged in Latin America, particularly in Mexico, Ecuador and the Dominican Republic, are being strengthened.

In the popular resistance and mobilizations that are taking place in these countries, the mass participation and attitude of resistance of the workers stands out. This also shows concretely the determining role of women in the advance of the struggle of the working class and peoples.

VI

Clearly these demonstrations, resistance and strikes are a source of hope in the struggle of the working class and peoples. However, the massive mobilizations of the workers and peoples also have the weakness of the lack of organization and consciousness, and on the vanguard level the participation of the working class as an independent class.

In recent years the popular demonstrations show that we have not yet overcome the disorganization caused by the defeat suffered by the working class.

Our immediate and concrete task is to change this situation. The disorganized demonstrations can not have a definitive success without a revolutionary program with independent demands, although they may achieve some advances over bourgeois reaction.

On this issue the responsibility belongs to our parties and our organizations. To increase our numbers among the workers and laboring people; to recognize the immediate democratic and economic demands and link the fight to the victory of the revolution and socialism; this is the only way. The objective conditions for socialism are more mature than ever; however, these demand in an unquestionable way the unity and organization of the working class and laboring people.

VII

Today, just as yesterday, the revolution necessitates strategic alliances. Class alliances built in action, that correspond to the practical political needs of the struggle, in various forms. The working class, the laboring and oppressed peoples, are advancing in their struggle to repel the attacks by building partial and temporary alliances. What is fundamental is to build these alliances around programs of struggle that include concrete and immediate demands of the working class and oppressed peoples. The present task of achieving unity, alliances, of building Popular Fronts, is inevitable, as were the united fronts against fascism in the past.

This is especially important in order to increase the political and ideological power of the working class and of our parties, and to create and develop popular organizations that advance the wheel of history.

VIII

There are countries in which the ideologues and spokespersons of the opportunist and revisionist parties and organizations invent “new” ideas and proclamations every day and try to distort the class struggle.

In Brazil, the social democratic government, in Spain Podemos [We Can], in Greece the “left” of Syriza, etc. are current examples. On the other hand, the “progressive” governments are becoming worn out, they are losing ground and prestige in Latin America.

Once again events show that reformism and liberalism have nothing to give the working class and the peoples.

Another mystification is the supposed progressive nature of Russian and Chinese imperialism as opposed to United States imperialism and its Western partners; this falls under its own weight, since their confrontations correspond to the preservation and expansion of their own interests. This is nothing more than embellishing bourgeois reaction and imperialist capitalism.

IX

The present events confirm that the class struggle is the motive force of history, that the working class is the fundamental force and the vanguard of the revolution and socialism.

That is why we call on the workers and peoples of all countries, on the youths, the progressive scientists and intellectuals of the world to unite and raise higher the fight against the international bourgeoisie, reaction and imperialism.

In this process, the International Conference of Marxist-Leninist Parties and Organizations will assume all its responsibilities and fulfill its necessary tasks.

ICMLPO, Turkey, November, 2014.

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) of 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

Source

ICMLPO (Unity & Struggle): The International Situation and the Tasks of the Proletarian Revolutionaries

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The imperialist capitalist world is trapped in its irresolvable contradictions

The significant development of the productive forces, the gigantic capitalist accumulation and concentration, is unfolding in the midst of the anarchy of production and the realization of commodities; it is marked by the desire for profit of the owners of private property; it is determined by the uneven development; it is marked by competition which is expressed primarily at the level of the imperialist monopolies and countries, leading to an intense and sharp contention in all areas, economic, financial, commercial, political, diplomatic and military.

The expansion of capitalism and imperialism cannot escape the economic crises that occur at increasingly shorter terms and with greater depth. One cannot hide the general decline of the economy. Although there will be new levels of development of the productive forces, the capitalist-imperialist system remains trapped in the general crisis, it is manifested in the wars of aggression and genocide, it is built on the super-exploitation of thousands of millions of workers in all countries on earth, it is responsible for the poverty of thousands of millions of human beings. It has nothing new to offer to the workers and peoples. It is a rotten system, a system in decline.

A new economic crisis is looming

The economic crisis of 2008, which began in the US and had an impact on the vast majority of countries and was identified as the most serious since the Great Depression of 1929, caused massive destruction of the productive forces, the unemployment of more than 10 million workers, the lowering of wages, the raising of the retirement age and the cuts to pensions, as well as the use of public funds to favor the large industrial enterprises and banks by the States, which had in turn to resort to a new and aggressive indebtedness. It was an economic crisis that arose in the heart of the capitalist world, in the US, and which spread throughout the world. It was a result of the very nature of the capitalist system, it affected the big monopolies, but its most dramatic effects were thrown onto the shoulders of the working classes, the peoples and youth and on the dependent countries.

The economy of the US, of the countries of Western Europe, of some of the dependent countries in Asia and Africa that were affected by the crisis of 2008 are in the process of recovering, but in an embryonic, limited, slow and above all partial manner, since unemployment is still very high in almost all countries. The level of global production has reached the dimensions of before the crisis, in good part due to the growth of the emerging economies.

The pressure of the high external debt is one of the most serious consequences of the crisis of 2008 and could become one of the triggers of a new economic crisis. According to the data of the World Bank, the US debt exceeds 110% of its GDP, which was $16 billion in 2013. England has a debt 5 times greater than its GDP. In France the external debt is more than twice the GDP. In Germany, the external debt is almost twice the GDP. Although the debt of the dependent countries has not reached the dimensions of the 1970s, it is steadily growing. In fact, only China has recorded a GDP that is significantly greater than its external debt.

The ability of the countries to pay this debt is seriously threatened. The US had to resort to a political measure, to raise the limit of its borrowing capacity by a decision of Congress. Argentina has just been declared in default by the holders of its debt. The initial recovery of the economies of Greece, Spain, Portugal and Hungary relies on the injection of large sums of capital from banks at high interest rates and shorter terms, on a new and higher debt that makes them very vulnerable. Italy’s economy has been in the red.

Since 2012, the slowing of the growth of the Chinese economy has been clear, as well as the difficulties of India and the decline of the economies of Turkey and South Africa.

In Latin America we are experience a slowdown in economic growth. Brazil has been declared in technical recession, while in the first quarter of this year 2014 Argentina had a growth of 0.9%

How is this new economic crisis expressed? Where will the financial bubble burst? Will regional crises occur? Will there be a crisis of major proportions as in 2008? These are various questions that cannot yet be answered completely.

The ills of the capitalist world continue to punish the workers and peoples. According to the International Labor Organization, absolute unemployment affects more than 202 million people; unemployment is noticeably most evident in Spain and Greece where it exceeds 25%, and for the youth, including university graduates, the rates exceed 50%. South Africa has an unemployment rate above 26%.

The poverty rates for 2013 show that there are 1,000 million people subsisting on less than $1 per day; 2,800 million people had incomes below $2 a day; 448 million children were underweight, while 30,000 children under one year die every day from diseases that can be cured.

In various countries in every continent the emergence and development of fascism has become evident as an expression of the interests of the arms manufacturers, of the ultra-reactionary sectors of the ruling classes, as a manifestation of racist and xenophobic groups who lash out against immigrants, the national minorities, against the workers, the trade unionists and revolutionaries. In some countries these fascist manifestations are expressed in the electoral political struggle and they achieve significant results that make them a threat to democracy and freedom. Fascism is a reactionary, anti-communist, anti-people and anti-democratic policy of a section of the bourgeoisie; in some cases it is expressed in the repressive practices of reactionary governments. For the proletarian revolutionaries, the unmasking, denunciation and fight against the expressions of fascism are the inescapable responsibility in the process of organizing the revolutionary struggle for socialism.

An unprecedented wave of migration has struck the world today; millions of workers from the dependent countries, particularly from the poorest due to the imperialist plunder, are seeking to reach the developed capitalist countries by any means; they are seeking jobs and opportunities, they had to face incredible obstacles, long treks, unsafe boats with which they defy the fury of nature, they go through sewers and turbulent rivers, trying to climb the walls put in place to prevent their arrival. Those who manage to arrive at the country of their destination are subjected to discrimination, low wages, the worst living conditions, as well as being victims of the reactionary policies, of racial hatred and xenophobia.

The inter-imperialist contention is intensifying

The US remains the largest international economic power, the main military power. It possesses the leading technology in important areas of the economy, mainly in the production of shale oil that is permitting a significant reduction in energy costs. Despite these circumstances the US is losing the hegemony that it held in the economic, political and military spheres, it now faces greater competition from the other imperialist monopolies and countries. Its traditional allies, England and other countries of the European Union, at the same time as in certain circumstances they agree on common actions, they are refusing to endorse some of the warmongering actions such as the decision to bomb Syria and they are openly contending for their interests, especially in Eastern Europe, Africa and Asia, also penetrating Latin America. Within the European Union itself the actions of Germany to dominate that bloc are visible, as are the policies of France and England to contend for those positions. Further, the strengthening of Russia’s economy and particularly its great military might make it a stronger power with a significant nuclear arsenal, which seeks to participate for its own interests in a new redivision of the world. The economic growth of China, its position as the second largest economy in the world, make it an economic, financial and commercial rival which is affecting all countries and continents, with the decline of US power and that of the other imperialist countries; it is part of the club of nuclear powers and has the largest army on earth. India is developing its growth to a great degree and is taking part in the redivision, even though much of its economy represents direct investments by the international monopolies. In addition, new countries are emerging in the international arena in the economic field, such as Brazil, South Africa, Turkey, Indonesia and Mexico, seeking to take part in the club of the powerful.

Clearly the unipolar world does not exist; the participation of various economic powers, of old and new imperialist countries has been developing since the end of the last century. They all are taking part in a world divided among the old imperialist countries, they are demanding their place in the new international situation, they are ready to contend for this position.

The rapacious and warlike nature of the imperialist countries is clearly seen in the military intervention, bombardments, invasions and deployment of occupation troops where their interests are threatened. The US and its allies continue to occupy Afghanistan, they are present in Iraq even though they have officially withdrawn, they carry out military actions in Pakistan, they maintain troops in Haiti, they intervene to support reaction and the oligarchies in Venezuela and they continue the economic blockade against Cuba. France invades Mali; it intervenes in Ivory Coast and the Central African Republic. Russia is forcefully annexing several republics and regions that were in the territory of the former USSR.

In 2014, Israel supported by the US and the Europeans carried out a brutal military aggression against Palestine, it unleashed intense air bombardments and repeated barrages of missiles, a military offensive with tanks and troops on the Gaza Strip, killing more than 2,000 civilians, children and the elderly. Presently there is a truce and some agreements that validate Palestinian demands to a certain extent; but they are not a definitive solution for the sovereign and popular future of the Palestinian people. The Israeli Zionists, despite having been unmasked and condemned by the whole world as genocidal terrorists, have not given up their desire to eliminate Palestine as a State and depopulate its territories in order to occupy them.

The inter-imperialist contradictions cause the assertion of the former economic blocs, NAFTA composed of the US, Canada and Mexico, the FTA between the US and the European Union, the European Union, Mercosur, the Asia Pacific bloc and the strengthening of the new groupings such as BRICS, the Shanghai Cooperation Organization and the Pacific Alliance.

We are experiencing an intense contention for the markets of the imperialist countries themselves as well as for the dependent states of Asia, Africa and Latin America. China is particularly aggressive in placing its commodities in all countries; it is currently the economy with the third greatest direct investments in other countries.

Another area of inter-imperialist contention is seen in the race for mining and oil concessions, to buy large tracts of agricultural land by the transnational companies and the States themselves. The development of the productive forces, the progress of science and technology demand large quantities of raw materials, sources of energy and food that must be found mainly in the dependent countries.

The economic, financial and commercial confrontation rests on the policy of military deterrence and, going beyond threats, we are witnessing localized armed clashes to seize and/or maintain control of countries rich in oil and other natural resources, as well as to seize strategic spaces for the control of regions and/or to threaten, intimidate and blackmail the rival imperialist powers, countries labeled as “terrorists” or which “support terrorism.”

The alleged fight against terrorism has become the “reason,” the pretext for the imperialist countries and the reactionary governments to justify police policies of control of their own populations and those of other countries, to discriminate and repress immigrant groups of Arabs and those from other countries whom they classify as terrorists or “financiers of terrorists,” as revolutionaries and as social fighters.

There are various localized military conflicts in which the various imperialist countries intervene directly for their own interests.

In Syria a reactionary civil war is continuing to develop between the most reactionary forces supported by the US and Western European imperialists, the Arab governments that seek to establish a puppet regime that can continue the encirclement of Iran; and, on the other hand, the government of Al Assad that is the continuation of an anti-popular regime established several decades ago that currently receives military support from Russia.

The policies of imperialist intervention towards the Middle East are provoking religious-confessional conflicts. One part of this situation is the aggression of the armed groups of Al Qaeda-Radical Islamists, especially the Islamic State, which is increasing. These groups aim at different nationalities and religions in the region, mainly Kurds, Yazidis, the Christian minority and Alawis.

In these circumstances there is a battle and polarization between the imperialists and reactionaries in the region on one hand, and the power and actions of the Kurds on the other hand. The Kurdish nation is one of the oldest in the Middle East, it is divided up among four countries and in the midst of the confrontation it has progressed towards cementing its identity, to place itself as the alternative of self-determination despite the pressure of the imperialists and their reactionary allies.

The outrage that is developing in all parts of the world against the siege of Kobane* by the Islamic State is being expressed in high levels of solidarity that encourage the struggle of the Kurds and has forced the US, other imperialist countries and various Arab states to create a Coalition against the Islamic State.

* Kobane is a small town located in one of the Democratic Cantons of Rojava in Syrian Kurdistan.

The resistance of the democratic cantons of the Kurds against the brutality of the Islamic State and the reactionary forces of the region that support it is encouraging the hope and pointing the way for the struggle of all the oppressed peoples of the Middle East.

Ukraine is a scene of heavy fighting between government troops under fascist leadership, supported unconditionally by the US and the European Union; and “pro-Russian” sectors of the population that are seeking annexation to Russia, as did the inhabitants of the Crimea. The democratic, patriotic and advanced sectors that are resisting fascism and stand for independence, freedom, democracy and socialism are fighting in very hard and uneven conditions. The soldiers and civilians who are facing each other in combat are Ukrainians but they are mainly led by the expansionist interests of the Western imperialists on the one hand and the geopolitical interests of Russia on the other. That confrontation has led to the imposition of economic sanctions on Russia and the defiant response of the Putin government. This is an open contention to show the world who is who: the Western military force or the military power of Russia.

The arms race is being dangerously revived

According to the Stockholm International Peace Research Institute, SIPRI, military spending has returned to the levels of the Cold War. Data from 2013 show that world spending for military objectives has risen to $3.3 million per minute, $198 million per hour, almost $4,800 million per day.

The US occupies the first place by far with an annual spending of $640,000 million, followed by China with $188,000 million, Russia with $88,000 million, and then Saudi Arabia, France, Britain, Germany and Japan. Note that both Germany and Japan are venturing dangerously into the arms race and have begun sending their troops abroad. Israel and Zionism are the enclave and spearhead of US imperialism to attack Palestine and threaten other nationalist governments in the region; it has one of the largest and best equipped armies in the world.

In general, all countries have joined the arms race, fueling the war industry that is in the hands of the transnational corporations and large state enterprises.

The proliferation of nuclear weapons, the large number of imperialist military bases spread throughout the world, the process of renewal of military arsenals, go beyond the deterrent policy practiced by the great powers. They are preparations for an eventual general conflagration for a new redivision of the world.

Russia and China are seeking to create an imperialist bloc

The expansion of the Chinese economy to all continents, the supply of heavy and light industrial products at competitive prices is flooding the markets of the great majority of countries, including the imperialist and developed capitalist states. The direct investment of Chinese capital for oil exploration, mining, the construction of large public works are in first place in the dependent countries of Asia, Africa and Latin America. The aggressive diplomatic policy and the creation of commercial, economic and military blocs make China the second largest economy, an economic great power and an important military power.

Russia has regained significant levels of its economy and continues to develop its military capacity, today taking second place as a military power. It is rebuilding its geopolitical spheres, yoking several of the former countries of the ex-USSR to its designs. Despite its present difficulties, caused by the fall in oil prices, it has proclaimed its decision to participate in the management of the destinies of the world.

It can be seen that there are significant levels of commercial, economic and military cooperation between China and Russia, who are working together on various commercial and military initiatives. However, it is also clear that there are serious contradictions to be resolved for the eventual formation of an imperialist military bloc.

The BRICS, a new pole in the international economic and commercial confrontation

The coming together of Brazil, Russia, India, China and South Africa to form BRICS began several years ago; it has 3,000 million people who make up 40% of the world’s population, produce 20% of the world’s GDP and in 2014 represent 18% of the world economy.

The BRICS’ summit held in Brazil in 2014, relaunched the international initiative, becoming an economic, financial and commercial bloc to have its own voice in the international arena. It established the BRICS Development Bank and a reserve currency for international transactions in order to compete with the World Bank and the International Monetary Fund. It is seeking to integrate the dependent countries of Asia, Africa and Latin America into its orbit.

In the reformist views that exist in all countries, BRICS is an anti-imperialist bloc that should be supported and on which the peoples and the “progressive governments” should rely. They start from the assumption that Russia and China are a bloc that will hold back the US, that they will side with the interests of peoples, as they supposedly did in Syria; they assume that Brazil has a progressive government and represents the interests of the people of Brazil and Latin America. These ideas are spread among the masses and cause confusion, which it is up to us proletarian revolutionaries to clear up. Moreover, there is no shortage of gullible people who preach that BRICS is a counterweight to the hegemony of the US and its allies that could create a deterrent force internationally.

BRICS is a new economic and commercial bloc, a group of great powers, whose main objectives are to strengthen itself at the expense of the looting of the dependent countries and of the export of capital. On the other hand, as the events unfolding in Ukraine show, BRICS has major fissures and contradictions within it. Russia has not received the full backing that it demands in its contention with the US and the European Union. China, at the same time as it contends with the US and the imperialist countries of the European Union, reaches economic and trade agreements with them. Among China, India and Russia, at the same time as they sign agreements, have important economic and geopolitical contradictions.

Various cultural and religious conflicts are exacerbated

In the Middle East for several decades, religious groups and sects are emerging that wave the banner of Islam in opposition to the Western and Christian world, that define their differences among various Muslim sects by means of a “holy war.” These groups are supported and financed by economic groups in the Arab countries and by certain governments. Al Qaeda, which was initiated, trained and financed by the CIA, played a dirty role in torpedoing the progressive national struggle of the Arab peoples and imposing terror. Presently the Islamic State, which was initially part of Al Qaeda, is militarily occupying much of Syria and Iraq and has proclaimed a Caliphate; it is powerfully armed and challenges other Islamic beliefs and other religions from Sunni positions, committing all kinds of crimes and atrocities. The actions of the Islamic State are serving as a pretext for a new intervention by the US-led imperialist coalition that involves certain Arab states that propose to eliminate it with the scorched earth policy, bombing Iraq and Syria. In Africa the organization Boko Haram is proclaiming Islamic fundamentalism, it is active in Nigeria, proclaiming the formation of a Muslim State and killing civilians and kidnapping hundreds of girls.

In sub-Saharan Africa ethnic and religious conflicts are breaking out between ethnic and religious groups, using weapons provided by the imperialist countries; many of these conflicts are fueled by the inter-imperialist contention over natural resources, oil and coltan.

The ethnic, cultural and religious feelings that serve as instruments for the formation of groups of fanatics are fueled by the imperialist countries and the ruling classes to divert the struggle of the peoples for national and social liberation.

The struggle of the working class and peoples

In no country on earth is there social peace; everywhere the working class confronts the exploitation and oppression of the capitalists for their interests.

Those expressions of dissatisfaction by the working class are developing unevenly, they pass through the stages of the debate over the defense of their interests and how to win them, from the sit-down strikes, company strikes and the general strike, from street demonstrations, the formation of initiatives of coordination and of trade union struggle, for the building of political platforms and the participation in the electoral struggle.

This year, the event of major importance was led by the workers, peoples and youth of Burkina Faso who, through massive and heroic demonstrations, overthrew the dictatorship of Campaore, who had established a repressive, reactionary and pro-imperialist regime for more than thirty years. In this process, the Revolutionary Communist Party of Upper Volta, our fraternal party of the ICMLPO, has played an outstanding role in the organization and development of the struggle to come from behind and reached its climax and victory in late October. The local ruling classes, the French and Yankee imperialists and the armed forces at their service acted to divert the course of the struggle towards the recomposition of imperialist domination and of local domination through elections and the renovation of the institutions. The workers, peoples, youth and proletarian revolutionaries are persisting in the decision to continue fighting for the final objectives of emancipation and are joining in the new ideological and political battles with renewed energy.

In Mexico large demonstrations of the youth, workers and the population have been held rejecting the brutal action of the official repressive forces, the armed forces and the police, of paramilitary groups in the murder of several youths and the disappearance of 43 students from the school for teachers. These struggles are putting pressure on the bourgeois institutions; they are becoming political expressions that demand the resignation of the government. In these days our fraternal party, the Communist Party of Mexico (Marxist-Leninist) is valiantly fulfilling its responsibilities, it is present together with the masses in the battles being waged. The brutalities of the reactionary regime of Mexico are receiving the condemnation of the workers and peoples of the world and of democratic public opinion; the popular movement is receiving the encouragement and solidarity of the social fighters and revolutionaries.

Tunisia has been reviving the ideals of the Arab Spring, of the struggle for freedom, democracy and social change. The workers, people and youth are developing new struggles to put into effect the gains of the popular uprising; they are fighting under all circumstances and using all forms of struggle; they are advancing in building the unity of the workers, peoples and youth, of the dissatisfied ones, of those who want change, in the Popular Front. In the last legislative elections the Popular Front achieved important results; it elected 15 deputies and in the presidential elections comrade Hamma Hamammi won third place among 27 candidates through hard struggle. In Tunisia the struggle for social and national liberation are still being raised; we communists have one of the boldest detachments.

The large demonstrations of workers in Spain, Greece, Italy and other European countries continue to show an important revival and an anti-capitalist orientation of the workers’ movement. In South Africa strikes by miners took place over several months. In China the strikes of the workers are numerous and combative.

The working classes and peoples are fighting for civil liberties and democracy, they are actively taking part in the political struggle, they are channeling popular opposition to the reactionary and sellout governments. The youth, particularly the secondary and university students, are taking part in the fighting in defense of public education, in opposition to the anti-popular measures of the governments of the bourgeoisie; they form a tributary to the struggle against imperialism, in defense of national sovereignty.

Reformism is no real alternative for social and national liberation.

A sector of the capitalist class, including some liberal bourgeois governments, social-democracy, the revisionists and opportunists continue to develop the politics of class conciliation, proposals for agreements among the workers, employers and governments to address the crisis, for the country’s growth, for social welfare.

These policies and practices have caused serious damage to the trade-union organization and the workers’ movement, it has allowed them to prop up the labor aristocracy, to promote the trade union bureaucracy that ties the hands of the unions, demobilizes the workers and diverts them from their class objectives.

In opposition to the leadership of the large unions, important sectors of the workers are seeking alternatives, they are forming coordinating collectives to fight for their rights, they are promoting union democracy and, in some countries they are forcing the bureaucracy to call strikes and demonstrations. Within the working class a sense of unity and struggle is being strengthened to oppose exploitation and oppression, to fight for their rights and new gains.

The struggles against the reactionary and neoliberal regimes in various countries and continents that have unfolded in the recent past have done away with several of these governments and have established through elections some governments that called themselves “progressive.”

Soon, these supposed alternative governments showed their class nature; they were expressions of another sector of the ruling classes, they used some reformist measures and especially welfare practices to deceive the working masses, to form a social base of political support, to promote ideological confusion that allowed them to fulfill the purpose of preserving the system of private property.

These various expressions of reformism that occurred in various countries and continents, mainly in Latin America, are becoming worn out; they were not able to confront the great problems of society or to meet the basic demands of the working masses; they are especially melting under the consciousness of the working class and peoples.

The proponents of reformism as a means of overcoming inequities are propagating the idea that putting an end to these processes will send us back to the past, to the rule of the old parties. That is a false premise that ignores the objective fact that those governments and programs represent the same old capitalism, a capitalism that actually does not remain static, that is always developing, always to the benefit of the propertied classes.

In Venezuela a particular process is unfolding: The economic and social measures of the government of Hugo Chavez were always significant in favor of the popular sectors; its patriotic and anti-US imperialist positions were consistent; it was the only government that relied on the mobilization of the masses. After the passing of Chavez, his successor is facing an aggressive campaign of destabilization and street fighting promoted by reaction with the direct support of the US. These actions are based on the social dissatisfaction due to the scarcity of food and other basic necessities, an inflation rate of over 60%, successive currency devaluations, the insecurity caused by an increase in crime. In Venezuela a tough battle is being waged between the left and right, between the patriots and sellouts, between revolutionary positions and reaction. Obviously, in Venezuela, there has not been a revolution despite the proclamations of the supporters of Chavez, nor is socialism being built. But there is a patriotic, democratic and revolutionary process that is confronting a fierce onslaught from reaction. The situation is proving that reformism, despite having assumed radical positions, is not the road to the revolution. It is not possible to predict the outcome of this confrontation in the short term. In any case the workers, people and youth of Venezuela are learning to fight in the midst high levels of struggles; they are developing an understanding of their role in the process of social transformation. The revolutionary party of the proletariat, the Marxist-Leninist Communist Party of Venezuela, has before it great challenges and responsibilities.

The thesis that there are warmongering and aggressive imperialist countries and progressive imperialist countries that help the peoples and can be relied on for the national liberation process is false. With these ideas the “progressive governments” hide the links to a new dependence.

The class struggle continues to be the motive force of history

The constant development of the means of production caused by the extraordinary development of science and technology and the incorporation of millions of human beings to industrial production is generating huge profits and a more pronounced concentration of wealth in the coffers of the great international monopolies and the imperialist countries. Despite new inventions and discoveries, information technology, cybernetics, automation and robotics, the size of this accumulation is primarily a result of the labor power of millions of men and women who work in the factories established in every country of the earth.

The expansion of capital and the accumulation and concentration of wealth are the result, in the first place, of the appropriation of surplus value by the capitalist class. Without the existence and labor of the working class there would not be any wealth, the world of capital would not be possible.

The working class today is at the center of the epoch; it is the creator of wealth, the basic force of society not only because of its role in production but also because of its numbers. As never before, billions of workers form part of the working class, industrial production energizes economic development.

The increasing socialization of production and the concentration of wealth are the pillars of the capitalist-imperialist system; two fundamental classes of the epoch confront each other, the workers and the capitalists, who have built up a world of exploitation and oppression for millions of human beings in the interest of a handful of bosses, a circumstance of social shame and inequality, a society in decay, a world that is irretrievably heading to extinction, a situation that will be negated by the advent of a new world, the world of the workers, socialism.

We Marxist-Leninist communists will fulfill our responsibilities

The responsibility of the communists to support the revolutionary new as opposed to the reactionary old, to promote the advanced positions, to fight for the immediate needs of the workers, demands the continuation of the struggle to unmask the revisionist and opportunist positions within the workers and popular movement.

We Marxist-Leninists are standard bearers of the unity of the working class in each country and on an international scale; we are working for the building of a great front that would include the workers of the city and the countryside, the working class and the peasantry, the oppressed peoples and nations, the peoples and nationalities who are oppressed and discriminated against within the capitalist states; that includes the working youth, students and intellectuals.

For us it is vital to perfect our policies and activities to win over for the economic and political struggle, important sectors of the youth who are suffering from the impact of imperialist plunder and capitalist exploitation. The awareness and potential of youth is in contention: one or another faction of the ruling classes is taking advantage of this, either anarchist positions will seduce them or we communists will win them over to involve them in the process of social and national liberation, in the struggle for emancipation.

We Marxist-Leninist communists have been fulfilling our responsibilities in our countries. We are in the front ranks of the fights of the working class and youth, we represent the interests of the proletariat and we must strive to give them direction and guidance, to convert them in the stages of the process of the accumulation of revolutionary forces. The duty of the proletarian revolutionaries to fight against imperialism and the bourgeoisie, for the revolution and socialism, imposes on us the responsibility to deal with the various situations in which the revolutionary struggle unfolds, to fight against fascism and repression, against demagogy and reformism, to involve ourselves actively in the problems of society from the positions of the working class, to seek the formation of the popular fronts, to participate actively in the day-to-day situation without losing sight of the strategic objective of the struggle for power.

ICMLPO, Turkey, November 2014

Source

Guevaraism: the Theory of the Guerrilla Elite

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An analysis of the theories of Regis Debray as propounded in “Revolution in the Revolution?”, and their relevance to the revolutionary struggle in Latin America.

By Cmde MS on behalf of MLOB.

FIRST PUBLISHED IN Red Vanguard Volume 1, 1968

THE THEORY OF THE GUERRILLA ELITE
Table of Contents

INTRODUCTION
BOURGEOIS OUTLOOK AND SPONTANEITY
CLASS ANALYSIS IN SOUTH AMERICA: THE “THIRD” WAY
THE ROLE OF THE INDIVIDUAL – THE MAXIMUM LEADER -FIDELISM
THE “FOCO” AS SUBSTITUTE FOR THE PROLETARIAN PARTY
PEOPLE’S WAR WITHOUT THE PEOPLE
“LEFT” AND RIGHT IN LATIN AMERICA
ASSESSMENT OF THE CUBAN REVOLUTION

Introduction

Regis Debray, a “private student of revolutionary theory and practice,” has written a book which purports to offer a “third way” to revolution. It is a “third way” which all Marxist-Leninists have hitherto failed to perceive, a “scientific truth” awaiting its release at the hands of this roving French philosophy student fresh from the cloisters of the “Ecole Normale Superieure.”

In their introduction to this book, Leo Huberman and Paul Sweezy, the American sponsors of Debray, claim that the revolution in Latin America:

“will not and cannot follow one or another of the patterns, traced out by the two great revolutionary upheavals of the first half of the twentieth century. The Latin American revolution is taking a third way, the first stages of which already been revealed in the Cuban experience.”

(“Revolution in the Revolution?” Penguin Books, 1968)

On the basis of this claim for a “third way,” these American liberals with a touch of rouge on their cheeks rush to proclaim the ultimate outcome of this breach in the wall of proletarian hegemony, the anti-Marxist-Leninist content of the loquacious petty-bourgeoisie of our time: that “still other revolutionary patterns may be possible” – ranging from the Yugoslav to the Chinese variants of the new syndicalism.

Debray’s book seeks to lay the basis for such radical revisions by spurning Marxist-Leninist theory in every one of its essential tenets: replacing proletarian hegemony and discipline by petty-bourgeois hegemony and anarchical relations, replacing class by individuals, proletarian parties by “focos” of undisciplined petty bourgeois insurectionists, historical materialism by naïve mechanical materialism, scientific analysis by sweeping presumptiousness.

Like countless other renegade products which attack Marxism-Leninism, this book has been received favourably by the bourgeoisie. In that it offers a way to “make revolution” from scratch, learning by the simple empirical process of trial and error and rejecting the Marxist-Leninist scientific method of the universality of contradiction and the unity of theory and practice, it serves them well. For if the “third way” of Debray were to remain unchallenged and be applied in practice, it would result in the most tragic setbacks and useless losses to the revolutionary cause in Latin America.

Indeed, the Bolivian adventure which cost Debray his liberty and Guevara his life was merely the latest in a long series of defeats and annihilations for which the addicts of spontaneity who exist in the national liberation fronts of many Latin American countries are responsible. It is for this reason that it is essential to deal with Debray’s claims in some detail. On the first page we read:

“One began by identifying the guerrilla struggle (in Cuba – Ed.) with insurrection because the archetype – 1917 – had taken this form, and because Lenin and later Stalin had developed several theoretical formulas (sic) based on it – formulas which have nothing to do with the present situation and which are periodically debated in vain, such as those which refer to conditions for the outbreak of an insurrection, meaning an immediate assault on the central power.”

(Ibid.-p.19)

NOTE: Because Debray’s “theories” have been endorsed by the Cuban leadership and because he uses the term “we” throughout his text, references to Debary and the Cuban leadership are interchangeable, except where otherwise specified.

No doubt we are supposed to be eternally grateful for Mr. Debray’s clarification of Lenin on the “formulas” for an insurrection, i.e, “an immediate assault on the central power.” This statement is to set the tone for disclaiming Leninism by alluding to Lenin as someone who, from 1900 to 1917, contributed nothing to the struggle in Russia but the cry “insurrection” without any of the detailed handiwork which Debray claims as his own discovery.

Unfortunately, of course, Mr Debray has not understood Lenin, or Marxism, on this elementary point. The involved and rich experience, of the tactics and strategy of “making revolution” the Marxist-Leninist way are a closed book to Debray (as a student of bourgeois philosophy still in his early twenties, this is not surprising) who assumes throughout that such wild and unqualified statements, can serve as the starting point for his even wilder flights of innovation around them.

Lenin and Stalin remain (despite the distortions of petty-bourgeois innovators such as Debray who wish not to see that which deflates the balloon of their pretentiousness) the most notable of those few proletarian leaders who have successfully led the working people through to the seizure of state power and the establishment of the dictatorship of the proletariat. This is distinct from that seizure of power by the national bourgeoisie in alliance with the peasantry, usurping the leading role of the proletariat, which masquerades as “the dictatorship of the proletariat” in some corners of the globe – and to the building of socialism. Given this historically unique position, we can assume that the definitions and experiences of Lenin and Stalin, hold important lessons for us in establishing further theoretical and practical bases of proletarian dictatorship without which there can be no socialism – in our respective countries.

In every fundamental essential, Debray betrays not only his divergence from these principles, but his total ignorance of them.

BOURGEOIS OUTLOOK AND SPONTANEITY

When he deals in detail with the specific conditions in the countries of the Latin American continent, he refers to the divisions existing between the revisionists and trotskyites in the liberation fronts of these countries. These divisions, which have been responsible for many defeats – notably the failure of the Cuban general strike in 1958 – Debray seeks to solve, by going over to the purely military front and brushing ideological and political questions aside. He ignores the fact that leadership involves the clarification of a line in theory and the consolidation of the forces around that theory in action. Lenin subjected anti-Marxist-Leninist theory and practice to a ruthless critique on every front, this struggle bearing fruit in the undisputed leading role of the Bolsheviks at the crucial turning points in the Russian revolution. Debray seeks to cancel out the role of theory and to advocate some kind of idealised and subjectivised “action” as the unfailing panacea guaranteeing victory. He quotes petty detail after petty detail, generalises them to the level of the universal in order to justify his “revolutionary” theories revising a whole arsenal of genuine revolutionary theory painstakingly accumulated throughout a century or so of arduous struggle by valiant proletarian fighters the world over.

Not once does he justify his claims against Marxist-Leninist theory – we are presented merely with surface details and Debray’s own brand of arrogant ignorance of the harsh facts of the struggle against imperialism. Thus, in justification of the “spontaneous inevitable progress of history”:

“The reverses suffered by the Latin American revolutionary movement are truly minor if one measures them in terms of the short period of time which is the prologue to the great struggles of tomorrow, if we take into account the fact that the few years which have passed correspond to that period of ‘takeoff’ and re-adjustment through which all revolutions must go in their early stages. Indeed, what seems surprising is that guerrilla movements have been able to survive so many false starts and so many errors, some inevitable and others not. According to Fidel, that is the astonishing thing, and it proves the extent to which the movement is impelled by history. In fact, we must speak not, so much of defeat as of a certain explicable stagnation and lack of rapid development, the consequences of, among other things the inevitable blunders and errors at this stage of exploration, of revolutionary conceptions and methods which are new, (our emphasis – Ed.) in spite of their deceptive kinship with other international experiences. . . .Of all these false starts, the Latin American is the most, “innocuous.”

(p.23)

This “innocuous” record has involved the annihilation of “half a hundred revolutionary organisations” on the Latin American continent, since the Fidelista upsurge!

On an even more alarming scale, on page 2 the cry of the petty bourgeois intellectual reveals itself in full swing in its justification of spontaneity, taken to the lengths of advocating the pleasures and benefits of a blissful ignorance of theory. In this assertion, Debray is typical of the worst philistine intellectual who steeps himself in book learning but condescends to the “masses” in their ignorance – in such a way he seeks to preserve the prestige of learning which can only stand up when contrasted with the “low level” of the masses. Anathema to Debray are the forces of the organised proletariat with their developed theory:

“One may well consider it a stroke of good luck that Fidel had not read the military writings of Mao Tse-tung before disembarking on the coast of Oriente; he could thus invent, on the spot and out of his own experience, principles of a military doctrine in conformity with the terrain. … all the theoretical works on people’s war do as much harm as good. (This includes General Giap, Lenin! –Ed). They have been called the grammar books of the war. But a foreign language is learned faster in a country where it must be spoken than at home studying a language manual.”

(p.20-21).

And, when dealing with the dangers of “imitation from past experiences”:

“All the more reason to remain aware of the inversion of which we are victims when we read theoretical works.”

(p.59).

So, we have here the claim that theoretical knowledge is a hindrance and that spontaneous “trial and error” is the only guide to revolutionary action. Likewise, political struggles through programmes, fronts, alliances – the essential and inevitable shifts and deployments of forces in the complex struggle to win the working people for revolution are not necessary. Those who claim they are,

“… believe that revolutionary awareness and organisation must and can in every case precede revolutionary action.”

(p.82)

This is carried to the lengths of noting (we presume with favour – otherwise why point it out?):

“A significant detail: during two years of warfare, Fidel did not hold a single political rally in his zone of operations.”

(p.53).

Thus we are dealing with a defence of spontaneity, (a spontaneity which yet Debray makes a show of criticising in others) where spontaneity takes as its fundamental precept:

“.. the armed struggle of the masses against imperialism is capable of creating by itself, in the long run, a vanguard capable of leading the peoples to socialism.”

(p.126).

CLASS ANALYSIS IN SOUTH AMERICA: THE “THIRD” WAY

In order to justify his anti-Marxist-Leninist theories, Debray has to claim a “unique” class situation in Latin America:

“… the irony of history has willed, by virtue of the social situation of many Latin American countries, the assignment of precisely this vanguard role to students and revolutionary intellectuals, who have had to unleash, or rather to initiate, the highest forms of class struggle.”

(p.21)

No doubt his studies at the Ecole did not include a syllabus on Marxism-Leninism. Debray, is about to proceed upon the unfolding of his “new” theories of revolution, applicable only to Latin America:

Firstly, that the leading instigating role of the intellectuals and students is unique. From this assumption he intends to demonstrate, that a new concept of the vanguard, a “foco” (a small band of guerrillas with allegiance to one “leader”) follows logically, and from this that the normal political channels should be ignored and give place to armed struggle as an end in itself.

However, his claim for uniqueness of situation in Latin America is a red herring raised in order to conceal his anti-proletarian, thoroughly bourgeois thinking. For in Russia the revolutionary students and intellectuals also initiated the struggle against imperialism and capitalism: it was they who formulated the theory of the vanguard party and the strategy of the world’s first proletarian revolution. And it is here that we come to the crux of the difference between those petty-bourgeois forces which, when declassed and pushed into the ranks of the working class, overcome their bourgeois thinking and thoroughly embrace the proletarian world view and its revolutionary struggle; and those who fail to identify themselves with the aims and aspirations of the majority class. These latter merely use their new class position to air their own minority grievances against capitalism, objectively striving to climb back to their former class position, sowing confusion and propagating theories in the process which act against the tide of revolutionary struggle.

There are of course, vast differences between the aims of those intellectuals who led the way in Russia and the aims of those in Latin America who advance Debray to be their spokesman. The intellectuals in Russia worked for the hegemony of the proletariat in the socialist revolution and, as its necessary preliminary, in the bourgeois democratic revolution.

Debray and those he represents, are that section of the petty bourgeoisie which stand for the hegemony of bourgeois ideology and the petty bourgeois forces, not for a socialist revolution and not even for the final victory and, consolidation of the national democratic revolution. For in the epoch of imperialism, this can only be led by the proletariat in alliance with the poor and middle peasantry if it is to be consolidated and is to prepare the around for the transition to the socialist revolution. The petty bourgeois and bourgeois view is for the holding of the revolutionary process at the stage of the national democratic revolution, in order that the groundwork for capitalism may be sown and the path towards the re-incorporation of the nation into the imperialist sphere once again be laid. They seek to prevent that national democratic revolution from being turned into the stream which feeds the proletarian revolution by crying “against dictatorship,” “against bureaucracy,” thus serving the interests of the national bourgeoisie.

And so, Debray’s claims that his “third way” is the new form of worker-peasant revolutionary alliance:

“What gives the guerrilla movement the right to claim this political responsibility as its own and for itself alone? The answer is: that class alliance which it alone can achieve, the alliance that will take and administer power, the alliance whose interests are those of socialism – the alliance between workers and peasants. The guerrilla army is a confirmation in action of this alliance; it is the personification of it alone can guarantee that the people’s power will not be perverted after victory.”

And

“… This progressive petty bourgeoisie must… commit suicide as a class in order to be restored to life as revolutionary workers, totally identified with the deepest aspirations of their people.”

(p.111).

Yet despite these claims, we find that the real picture is very different.

In order to make his thesis workable Debray has to provide the vanguard leadership without which this class alliance cannot be consolidated. He performs this conjuring trick by taking the current “left” revisionist emphasis on the countryside in opposition to the cities, to its most illogical conclusion to date: all who live in cities are bourgeois, all who live in the mountains are proletarian, and hegemony in the struggle belongs to the petty bourgeois rural guerrillas who become the vanguard “proletariat” of Debray’s imagination.

This is one of his more remarkable “additions” to Marxist-Leninist theory:

“….As we know, the mountain proletarianises the bourgeois and peasant elements, and the city can bourgeoisify the proletarians, The tactical conflicts that are bound to arise, the differences in the evaluation and line, conceal a class conflict, in which the interests of the proletariat are not, paradoxically enough, on the side which one would expect. It was possible to resolve these conflicts rapidly in Cuba, and the advance towards socialism was undertaken as quickly as it was after taking power because Fidel, from the first day, demanded, won, and defended hegemony for the rural guerrillas” (our emphasis – Ed; p.75).

He quotes approvingly Guevara’s muddled thesis in the same vein:

“These differences (ie, between the plain (the town) and the sierra (the countryside) – Ed.) go deeper than tactical divergences. The Rebel Army is already ideologically proletarian and, thinks like a dispossessed class; the city remains petty bourgeois, contains future traitors among its leaders, and is very influenced by the milieu in which it develops.”

(Guevara , quoted by Debray on p.77).

In this strange system of Marxism, the city, wherein labour and toil, the wage slaves of capitalism, has thus been conveniently disposed of to make way for leadership by that more revolutionary the petty bourgeoisie!

In further imaginative vein, the “back to nature” aspirations of the dilettante petty-bourgeois fleeing from the terrors of the era of machinofacture and proletarian organisation are eulogised:

“Such are the mental reactions of a bourgeois, and any man, even a comrade, who spends his life in a city is unwittingly bourgeois in comparison with a guerrillero…. Not to have any means of subsistence except what you yourself can produce, with your own hands (? – We read elsewhere in his treatise that equipment and supplies were pilfered in raids on villages – MS-Ed) starting from nature in the raw. … The city dweller lives as a consumer. As, long as he has some cash in his pocket, it suffices for his daily needs.”

(p.68)

“Nothing like getting out to realise to what extent these lukewarm incubators (the cities – Ed.) make one infantile and bourgeois. In the first stages of life in the mountains, in the seclusion of the so-called virgin forest life is simply a daily battle in its smallest detail: especially is it a battle within the guerrillero himself to overcome his old habits, to erase the marks left on his body by the incubator – his weakness.”

(p.69)

Really, Mr Debray – speak for yourself! No doubt it is a delightful element of “free choice” for the coddled petty bourgeois to remove himself temporarily to the more ascetic hardship of the mountains! But even capitalist economists have had to acknowledge that the daily lot of the proletarian is one which requires him to sell his birthright, his freedom, his expectancy of life precisely in order to obtain that little “cash in his pocket” without which he would be too dead to have any “daily needs!”

Also, in magical vein, we are told that:

“Under these conditions (guerrilla experience Ed) class egoism does not long endure.. Petty bourgeois psychology melts like under a summer sun ..”

(p.110).

Would that this were so!

From a reference he makes to Castro on the subject of the inherent qualities of “the people” we can draw only the conclusion that the term refers to the peasantry alone (p.112). And of course this is as it must be, for despite the loud claims, these theories bear absolutely no relation to the proletariat whatsoever.

The fig-leaf cover required to normalise this petty bourgeois leadership and masquerade it under the false cloak of a “worker-peasant alliance” leading to socialism was the verbal trick of claiming that a handful of petty bourgeois guerrillas, through their relationship to their “means of production” in the rural environment – the “dispossessed class” – were the proletariat leading the peasantry.

This makes the formula complete. But no amount of verbal juggling can make these theories any other than what they really are –

Namely, the laying of the foundations of the dictatorship of the national bourgeoisie in Latin America with all the jargon that goes with it:

  • the abstract and classless theory of “armed revolution”;
  • the purely military “foco”;
  • the primacy of spontaneity and,
  • the overall aim of “the happiness of the people” divorced from any concrete class analysis.

A typical petty bourgeois phenomenon is the spurning of class analysis and political theory. The bourgeoisie has its class theory, just as the proletariat has. But the petty bourgeoisie has no independent ideology because it is a transitional class, a virtual hybrid ideologically – part bourgeois and part proletarian in its advocacy of ideology according to the fortunes of which major class appears likely to benefit it most. That is the reason for the sweeping idealist phrases which are utterly classless. It therefore vacillates opportunistically, avoiding the statement of a political position because it does not know at any one stage in the movement of class struggle which side it will need to be on.

Thus the claims of the Debrayists are not new. Always and everywhere they have been part of the arsenal of the petty bourgeoisie in attempting to further their social and class aims – and they are theories which are inimical to the hopes and aspirations of the only truly revolutionary class, the proletariat; theories which at root and beneath the libertarian cover are nothing but a vicious attack on the proletariat and its class mission.

THE ROLE OF THE INDIVIDUAL – THE MAXIMUM LEADER – FIDELISM

If the character of the theories we have outlined are correct, it will follow that, in place of proletarian discipline and democratic centralism, petty bourgeois individuality will be enthroned. And this is so. We read:

“The city, Fidel says, ‘is a cemetery of revolutionaries and resources’… A leader cannot go down to the city to attend a political meeting: he has the politicos come up to discuss and make decisions in a safe place up above: otherwise he sends an emissary. Which presupposes, in the first place, recognition of his role as responsible leader, the willingness to give him the resources with which to exercise his leadership – if not, he takes them himself. It implies, above all, the adoption of an open and explicit strategy.”

(p.67).

“This reconstitution (of the “party” Ed.) requires the temporary suspension of ‘internal’ party democracy and the temporary abolition of the principles of democratic centralism which guarantee it.”

(p.101).

Furthermore, the conventional party only brings with it “the plethora of commissions, secretariats, congresses, plenary sessions, meetings etc”. These are the cause of “the vice of excessive deliberation” which “hampers executive, centralised and vertical methods, combined with the large measure of tactical independence of subordinate groups which is demanded in the conduct of military operations (p.101).

In other words, discipline and organisation, which are the main manifestations of proletarian organisation, ‘hamper’ the freedoms of the petty bourgeois leaders, who wish to answer to no strata or section of the population – and indeed, by their very hybrid class position, do not directly represent any. To these military adventurists, the primacy of political struggle which is supplemented by military struggle, is the source of all evils. It brings with it the necessity for disciplined leadership, political discussion of strategy, the difficult work of actually involving the working people in struggle. All these tasks are anathema to the Debrayists and their foolhardy bands of “trial and error” revolutionaries.

But we have only proceeded a little way in our analysis.

We have now to deal with the real reason why Debray has thought it necessary to throw all previous historical experience overboard, to decry and reject any lessons from the revolutions of Russia, China and Vietnam, the theories of Marx, Engels, Lenin and Stalin; to throw the leading role of the proletarian party overboard. It is because:

“In Cuba, military (operational) and political leadership have been combined in one man: Fidel Castro.”

(p.96)

It is because of:

“the line of action of which Fidel Castro, the leader of the Cuban Revolution, is the incarnation.”

(p.119)

Throughout the text is peppered with glowing references to “Fidel says,” rather like the childrens’ nursery rhyme. Thus, speaking again of “the leader” and his qualities:

“In brief, no detail is too small for a politico-military chief: everything rests on details – on a single detail – and he himself must supervise them all.”

(p.89)

What a staggering piece of nonsense! In contradistinction to even the Blanquists, who claimed that a small elite could liberate the people, we have the ridiculous adolescent hero-worship that one man – one “maximum-leader,” the “incarnation,” is our hope for socialism. Mr. Debray claims with pride that this leader, combining all qualities,” is the startling innovation that has been introduced” into the theory of Marxism-Leninism. We must indeed confess ourselves startled at such a turn of events – when the personal feelings of a twenty-year old whose transference to maturity had been stunted inside the portals of a bourgeois temple of philosophy – are put forward as the basis for a world-view involving the fate of millions!

But it would appear that in the sierras under the sway of “Fidelism,” in place of the proletarian party and its healthy collective discipline, that body representing the best qualities of a class, such inverted and ingrown petty bourgeois acts of hero worship are commonplace. For Guevara himself, on the basis of his experiences with Fidel, stated that “the aim is for all qualities to be united if possible, in one person.” This maximum leader,” as the world knows, has not been slow to bask in the limelight of glory and rise to the heights of demagogy which this mystical cult has presented to him.

Thus we are dealing with an idealisation of the petty bourgeoisie, an idealisation which can only finish up in extremely deep water.

And it does, for such baseless hero-worship and unquestioned allegiance to one “leader” is the very essence of bourgeois class thinking, when confronted with the problem of misleading and subjugating vast social forces for its own ends. It represents a crisis in the leadership of a historically obsolescent class when the normal, logical, although unequal, system of maintaining its power is threatened from below. This initial demagogy of the “maximum leader” often appears too ridiculous to take seriously. But beneath it, lies the sabre of a force which is responsible to no constitution, to no labour laws, no checks by the working people, no power other than to itself. All too often it has finally resulted in bloodbaths not only involving the working class but any other strata which have got in the way of a totally destructive and anarchic force.

The seeds of such theories of an independent armed force, are present in the thinking of the Debrayist petty bourgeoisie:

“It has been proved that for the training of revolutionary cadres the people’s war is more decisive than political activity without guerrilla experience. Leaders of vision in Latin America today are young, lacking in long political experience prior to joining up with the guerrillas. It is ridiculous to continue to oppose ‘political cadres’ to ‘military cadres’, ‘political leadership’ to ‘military leadership’. Pure ‘politicians’ who want to remain pure – cannot lead the armed struggle of the people; pure ‘military men’ can do so, and by the experience acquired in leading a guerrilla group, they become ‘politicians’ as well. The experience of Cuba and, more recently, of Venezuela, Guatemala, and other countries demonstrate that people – even petty bourgeois or peasants – are more quickly and more completely moulded by experience of guerrilla warfare than by an equal amount of time spent in a training school for cadres – a consequence, as far as men are concerned, of the essentially and totally political character of guerrilla warfare.”

(p. 88-89).

This dominant military force will be naturally, young – since the old are, well – they are “alas… old” and worn out:

“In Latin America, wherever armed struggle is the order of the day, there is a close tie between biology and ideology. However absurd or shocking this relationship may seem, it is none the less a decisive one. An elderly man, accustomed to city living, (do workers retire at the age of 40? – MS-Ed) moulded by other circumstances and goals, will not easily adjust himself to the mountain nor – though this is less so – to underground activities. In addition to the moral factor – conviction – physical fitness is the most basic of all skills needed for waging guerrilla war; the two factors go hand in hand. A perfect Marxist education is not, at the outset, an imperative condition. That an elderly man should be proven militant – and possess a revolutionary training – is not, alas, sufficient for coping with guerrilla existence, especially in the early stages. Physical aptitude is the prerequisite for all other aptitudes (?? – MS-Ed); a minor point of limited theoretical appeal, but the armed struggle appears to have a rationale of which theory knows nothing”.

(p. 101)

Thus it is brawn, not the creative brain; political ignorance, not understanding; youth and fitness, not experience which constitutes Debray’s “master race” of revolution.

Such is the demagogy which wears the mask of “Marxism.” It is this monstrous deformation which results from the failure to build a vanguard party based firmly on the alliance between the working class and peasantry in the conditions of a national democratic struggle. For with this party denigrated, with the proletarian role usurped and the peasantry dragged in as fodder to back up and strengthen the inherently vacillating national bourgeoisie, the net result can only be, once foreign imperialist domination is overthrown, the imposition of the dictatorship of this national bourgeoisie fully confirmed in its class role – a national bourgeoisie forced to adopt the fascist-type “maximum leader” principle in order to maintain its hold over the vast masses of the people and obtain its surplus value from an underdeveloped economic system by screwing up the rate of exploitation – free from the bugbear of any organised opposition and defence by the working people of their own interests.

This is precisely the same demagogy which we see today stretching from China to Indonesia and Cuba: with the party of the proletariat destroyed, the national bourgeoisie walks into its repressive role, and the proletariat is denigrated viciously as “a bourgeois force” in order to cover up the real bourgeois nature of these leaders. There is an exact parallel with the Chinese national bourgeoisie and its assumed “leftism”: the “‘cultural revolution,” which aims to destroy the proletarian vanguard party.

THE “FOCO” AS SUBSTITUTE FOR THE PROLETARIAN PARTY

We have already had a pretty rounded introduction to the theories of Debray.

It comes as no surprise therefore, that for Debray the Marxist-Leninist theory of the vanguard party of the proletariat, must give place to yet another unique contribution to “Marxism-Leninism”; that is, the theory of the immaculate conception, or the spontaneous begetting, of the vanguard nucleus.

Thus:

“The vanguard party can exist in the form of the guerrilla foco itself. The guerrilla force is this party in embryo. This is the staggering novelty introduced by the Cuban Revolution.”

(p.105)

“The people’s army will be the nucleus of the party, not vice-versa. The guerrilla force is the political vanguard in nuce, and from its development a real party can arise …. That is why at the present juncture, the principal stress must be laid on the development of guerrilla warfare and not on the strengthening of existing parties or the creation of new parties.”

(p.115).

“Eventually the future People’s Army will beget the party of which it is to be, theoretically the instrument: essentially the party is the army.”

(p.105).

Just as a vanguard party is not necessary in the struggle, one can also dispense with political education of the mass of the-working people:

“(the system of political commissars)… does not appear to correspond to Latin American reality. … The people’s army is its own political authority. The guerrilleros play both roles indivisibly. Its commanders are political instructors for the fighters, its political instructors are its’ commanders.”

(p.114).

For in place of the scientific truths of Marxism-Leninism, we are offered a set of maxims mouthed parrot-like by “revolutionaries” whose proudest claim is their rejection of the historical experience of the revolutionary peoples in struggle and their philistine ability to “invent,” on the spot, ‘the great truths, which are hereinafter valid for all time:

“In many countries of America the guerrilla force has frequently been called the ‘armed fist’ of a liberation front, in order to indicate its dependence on a patriotic front or on a party. This expression, copied from models elaborated elsewhere – principally in Asia – is at bottom, contrary to the maxim of Camilo Cienfuegos: ‘The rebel army is the people in uniform’.”

(p.65)

What duplicity. A handful of petty bourgeois adventurers, who are a law unto themselves, constituting a “foco” which preserves its independence from the people because the mass of the people “contain many potential betrayers of the revolution,” are put up as the true representatives of the workers’ and peasants’ best interests, as the substitute for a party of the working masses. Such are the lengths to which these arrogant petty bourgeois will go in their task of attacking the fundamental and only guide to action of the masses, in whatsoever corner of the globe: the scientific principles of Marxism-Leninism.

And, of course, Debray, in addition to his ignorance of Marxism or Leninism, is completely at sea on the facts of the Cuban revolution and its outcome, as we shall see in more detail later. Suffice it here to say that he is under the totally erroneous impression that the “theories” he claims to have unearthed, were actually borne out in practice:

“Around this nucleus, and only because it already had its own politico-military leadership, other political forces have been able to assemble and unite, forming what is today the Communist party of Cuba, of which both the base and the head continue to be made up of comrades from the guerrilla army. The Latin American revolution and its vanguard, the Cuban Revolution, have thus made a decisive contribution to international revolutionary experience and to Marxism-Leninism.”

(p.105)

Obviously no one has told him that so weak, so undisciplined and so politically inept was this guerrilla force when faced with the directly political tasks of managing a “state of the working people” that its first action was to call in the aid of the revisionist Popular Socialist Party, a party which had played a completely traitorous role in the struggle against Batista, to help them man the heights of political power.

Debray devotes a good percentage of his book to attacks on those revisionists (such as of the Popular Socialist Party) – attacks which are justified to a certain extent – but what cannot be justified is his attempt to make of the sell-out which the Cuban revolution was to become a model of “Marxism-Leninism”, every unprincipled turn of which must be copied throughout the Latin American continent.

When the Cuban leadership granted Mr. Debray full facilities to study the Cuban revolution and its history that is, employed him to embroider a myth and bury the facts they chose wisely. They chose a representative of that privileged section of the petty bourgeoisie which devotes all its time and energies to the renegade task of attempting to destroy the only theory and practice which can liberate all the oppressed social classes by a revolution which will end for ever the unequal privilege whereby those who create wealth and culture are robbed by those who make of it a reactionary metaphysical mystique.

PEOPLE’S WAR WITHOUT THE PEOPLE

We begin, as usual, with a claim of uniqueness for the Latin American situation.

The discovery of this “new” path has led to many errors, but these are inevitable “at this stage of exploration, of revolutionary conceptions and methods which are new in spite of their deceptive kinship with other international experiences” (p.23). The aim of the armed foco is to build up “through guerrilla warfare carried out in suitably chosen rural zones a more mobile strategic force, nucleus of a people’s army and future socialist state” (p.25).

Of course this armed spontaneity diverges radically from all other successful experiences to date – and, naturally, has met with innumerable failures. Therefore, we have to have a scapegoat. Upon this scapegoat are blamed residual “imported” errors, that explain the “inevitable” errors on the “new” path. He makes this scapegoat, the dangerous “imported political conceptions” of Vietnam and elsewhere, with such out-of-context claims as the “subjection of the guerrilla force to the party” (p.25) contentions, which are not applicable to the “historical and social conditions peculiar to Latin America.” (p.56)

He notes that:

“… in Vietnam, the Communist Party was the organisational nucleus from which and around which the people’s army developed.”

(p.47).

But:

“Differences between Vietnam and Latin America lead to the following contrast: whereas in Vietnam the military pyramid of the liberation forces is built from the base up, in Latin America on the other hand, it tends to be built from the apex down; the permanent forces first (the foco), then the semi-regular forces in the vicinity of the foco, and lastly or after victory (Cuba) the militia.”

(p.50)

Of course, such a radical turning on its head is not clarified in any way. It is simply taken for granted.

Another “irrelevant” theory to Debray, employed as it has been in all the successful national liberation struggles of our time, is that the guerrilla forces should aim to be so integrally a part of the people that they remain unnoticed “like a fish in water”;

“The occupation and control of rural areas by reaction or directly by imperialism, their vigilance today greatly increase should rid a given group of armed propagandists of all hope remaining unnoticed like a fish in water’.”

(p.51)

And another “unique” point:

“Let us not forget, that the class enemy carries out selective assassination on a large scale in Latin America – kill the leaders and leave the rest alive.”

(p.66)

Really, Mr Debray, one would think from such a statement that imperialist oppression itself is completely unique to Latin America. Yes this elitist militarist theory is nonsense.

It has been put forward in order to cover up the essential heresy which lies beneath the claims to a “people’s army”; by inventing a uniqueness which prevents the application of the theory of people war, as it is understood by all genuine representatives of the working people, it is hoped to cover up the fact that this was the work of a handful of insurgents who bear no relationship whatsoever to the real aspirations and political requirements of the forces in struggle against imperialism.

In a vulgarisation of the role of the guerrilla we read:

“It must have the support of the masses or disappear; before enlisting them directly, it must convince them that there are valid reasons for its existence so that the ‘rebellion’ will truly be – by the manner of its recruitment and the origins, its fighters a ‘war of the people.”‘

(p.46)

and:

“….. the only conceivable line for a guerrilla group to adopt is the mass line; it can live only with their support, in daily contact with them.”

(p.110)

But behind this thin “mass line” lies the real reason why Debray has found it necessary to reject the experience of people’s war in Vietnam, Laos, etc. It is a reason which completely removes the class basis and pins his theory down as a justification of the individualism, instability and shallowness of the petty bourgeoisie. For Debray rejects the concept of a fixed base of support, i.e. a mass-base amongst the people, for individualistic nomadism, without any social base.

“the guerrilla base is, according to an expression of Fidel, the territory within which the guerrilla happens to be moving; it goes where he goes. In the initial stage the base of support is in the guerrilla fighter’s knapsack.”

(p.64)

“During the first stage (of the guerrilla war Ed.), clearly the hardest to surmount and the most exposed to all sorts of accidents, the initial group experiences at the outset a period of absolute nomadism.”

(p.31)

A fine “people’s war,” one of the main aims of its elitist liberating mission being to achieve independence from the people (as opposed to the Marxist-Leninist thesis of the necessity to build the revolutionary independence of the working people from their exploiters):

“The revolutionary guerrilla force is clandestine. It is born and develops secretly. The fighters themselves use pseudonyms. At the beginning they keep out of sight, and when they allow themselves to be seen it is at a time and place chosen by their chief (sic). The guerrilla force is independent of the civilian population in action as well as in military organisation; consequently it need not assume the direct defence of the peasant population.”

(p.41).

With a further display of arrogant elitism and incredible lack of faith in the forces they claim to represent, we read:

“Constant vigiliance, constant mistrust, constant mobility – the three golden rules. All three are concerned with security. Various considerations of common sense necessitate wariness towards the civilian population and the maintenance of a certain aloofness. By their very situation (? MS-Ed) civilians are exposed to repression and the constant presence and pressure of the enemy, who will attempt to buy them, corrupt them, or to extort from them by violence what cannot be bought… . ‘We hid our intentions from the peasants’, Che relates, and if once of them passed near the scene of an ambush, we held him until the operation was completed. This vigilance does not necessarily imply mistrust: a peasant may easily commit an indiscretion and even more easily, be subjected to torture.”

(p.43)

Thus the claim that these theories are a more highly developed form of “people’s war” begins to look slightly ludicrouswhen the guerilla foco is fighting not only the imperialist enemy but completely isolated from and antagonistic to the mass of the working people, and peasants, the only possible base in a people’s war against imperialism.

In this scheme of things the working people and peasantry serve merely as fodder for the adventurist, personally gratifying, military gambles of the unstable, dissatisfied petty bourgeoisie. We begin to see why the solidarity of the Vietnamese people in their genuine people’s war is anathema to the Debrayists, and why they constantly warn of the dangers of “imitating the Vietnamese experience.”

So Debray has disposed of the class base of a genuine revolutionary movement, of its wholehearted dedication to and identification with the exploited and oppressed classes;

Debray has disposed completely of the alliance of the two major oppressed classes, proletariat and peasantry, which when welded together into an invincible alliance, constitute the only force which can resolutely oppose and defeat imperialism by classing the proletarian forces of the cities as “bourgeoisie”;

Debray has cancelled out the role of political struggle by scorning the tasks of building a revolutionary movement around a programme, forging alliances, educating the people for struggle, organising, agitating propagating in the course of building this powerful force of the working masses, and revealed his thoroughly bourgeois content by ignoring the vital and indispensable role of the general staff of a revolution, its vanguard party;

And at the tail end of this rejection of all that constitutes a genuine revolutionary force, his guerrilla focos resemble nothing more than bandit groups, cut off from the oppressed people to such an extent, that at a certain stage of their reckless ill-conceived adventures they are forced to break the cardinal principle of genuine people’s war – never to steal the property of the workers and peasants by advocating raids – on villages for supplies:

“It is less risky and safer for a guerrilla group to make raids on neighbouring villages from its own base in order to obtain foodstuffs and field equipment.”

(p.70).

It is now quite clear why so many Fidelista focos have floundered and been wiped out. For by elevating guerrilla struggle (or their completely militarist inversion of it) to an end in itself, as opposed to a stage in the struggle which it really is, and by advocating that a handful of “dedicated determined men,” maintaining their aloofness from the vast mass of the working people, ignoring political questions” with the same blindness as mediaeval mystics, can overthrow the considerable might of imperialism, they cut the very ground from under their feet and lead those who follow them to almost certain defeat and massacre.

Debray claims that the great misconceptions which exist concerning the Cuban revolution are the reasons for so many failures in recent years on the Latin American continent. He claims his book is the vehicle which distils the true essence of that revolution and lays down its theory for the edification of all like-minded insurgents. It has been pointed out that the essence he has distilled, besides its dangerous implications, bears very little resemblance to the actual course of the Cuban revolution add the lessons which are to be learned from it.

We must therefore now look at that Cuban experience and distil from it our own essence – one which has been processed according to the scientific principles of Marxism-Leninism.

“LEFT” AND RIGHT IN LATIN AMERICA

What is the fundamental malaise which is responsible for such anti-Marxist-Leninist rubbish as the Debray theories being purveyed with some seriousness in Latin America? It lies, surely, in the classic division between right and “left” which has – we now borrow Mr. Debray’s phrase – revealed itself in a very obvious form due to certain more heightened conditions in Latin America.

Debray takes as his point of departure the right revisionist betrayal over many decades in Latin America, and seeks to counter-pose his leftist theories as the way forward.

But whereas the right deviation seeks to tie the class forces of the proletariat and its allies to bourgeois ideology and practice in such a way as to transform the party into an instrument of foreign imperialism, the comprador bourgeoisie and the feudal reactionary classes;

Its leftist counterpart, the “left” revisionist deviation, also reflects, the influence of bourgeois ideology and practice within the class forces of the proletariat, but in this case adapted to the class needs of the national bourgeoisie.

The national bourgeoisie has an objective interest, at least for a time, in the victory of the national democratic revolution, but wishes to achieve that victory under its class leadership and not under that of the proletariat and its allies.

It therefore needs to make use of revolutionary phraseology, the best form of which is provided by the petty bourgeois left distortions of Marxism of which Debray’s teachings are typical.

These deviations are able to take an extreme and clear form within the contradictory framework of political institutions in Latin America. The apparently organic and established character of the state frameworks in most Latin American countries has resulted from the early formal independence won against Spanish colonial rule which resulted in an earlier development of semi-colonial forms of domination by USA imperialism. This has seduced the majority of the revisionist parties in those countries into believing that the doctrine of “peaceful transition” could be applied there without the disguise of leftist phraseology and lip service to guerrilla and other violent forms of struggle. As a consequence, right revisionist policies in Latin America have met with the most abject failure of any in the world, driving those parties, in a number of instances – the best known being that of Batista’s Cuba – to degenerate into direct, tools of foreign imperialism and indigenous comprador reaction.

This history of open right-revisionist betrayal and errors is the main factor determining the current swing to the “left” in a diametrically opposed direction. This history counterposes “peaceful legal advance without violence” and the militarist spontaneity of “military struggle without politics.”

It represents a classic manifestation of the spontaneous division between “left” and right. We say spontaneous, because these extremes occur in the vacuum-left, when genuine scientific analysis and the revolutionary leadership which results from it are lacking. A right deviation delivers the working people and peasantry helpless to the massacre of imperialist guns and without any means of defence. Whilst leftism provokes isolated violence and brings down the full force of imperialist violence on an inadequately steeled and prepared nucleus, divorced from the mass of the people but involving these forces in the bloodshed which accompanies their defeat.

These complementary deviations have wreaked havoc within the national liberation fronts of the Latin American continent and make more essential the return to a class analysis as the basis for a scientific theory of revolution.

Certain countries of the Latin American continent have been viewed by right revisionism as possessing sufficient formal trappings of democracy to justify a full programme based on electoral advance to socialism by peaceful means, such as Uruguay, Chile, Argentina, Costa Rica and Brazil.The remaining long-standing open dictatorships have necessitated right revisionist programmes of a more militant type, albeit singularly lacking in any guide to action to overthrow the repressive regimes, but relying on the hope that “democratic rights” would be established under restrained “mass pressure.” It is therefore to the statements of the Communist Parties of the former category that we should turn for the clearest expression of “parliamentarism” on the Latin American continent.

A reference to the Costa Rican Communist Party’s “competition” some years ago makes the right revisionist position very clear.

Here instead of the vanguard party thriving in a situation of heightened class struggle, we are presented with the novelty of a “vanguard party” which finds itself losing ground; when objective class struggle is seen as a nuisance factor which has interfered with the prime task of the ingrown little organism’s race to achieve a per capita paper representation in some imaginary “democratic institution” – whilst all comprehension of the realities of class remains blissfully outside its scope.

It does not require a very detailed knowledge of the situation Costa Rica to understand that the way to salvation of the Costa Rican working People does not lie through such “struggle” as advocated by the “Costa Rican People’s Vanguard”:

“A competition in the sphere of organisation, education, propaganda and finances has been conducted by the Party in five of the seven Provinces of Costa Rica. … Judging by the results it looked as if the target advanced by the Ninth Congress (doubling the membership) would be realised without much difficulty. However, unforeseen circumstances arose which hampered the work of building Party.

The first was the Caribbean Crisis last October and the wave of repressions that came in its wake. Our newspaper was banned and the activity of the Party was restricted in one way or another . . . .

Owing to the repressions in the Pacifico Sur party membership has shown no increase. However, despite these negative factors and the intensified repressions in connection with the talks between the presidents of the Central American countries and President Kennedy in March 1963, the competition conducted by the five provinces was, on the whole, satisfactory.. . . . .

It is clear to us that when international tension increases and the war danger grows, repressions are intensified and democratic liberties curtailed, and the growth of the Party slows down….Hence we are waging a constant struggle for peace, against the restriction of democratic freedoms.

This, of course, does not lead us to the opportunistic conclusion that we can fight and win only in conditions of legality and extensive utilisation of democratic rights. However, the fact remains that in the present conditions the most favourable climate for Party growth is international detente, since this makes it easier to defend the democratic gains of the working people.”

(Oscar Vargas: World Marxist Review: Oct 196,3; p.61-2).

The trite rejection of opportunism offered by Vargas does not invalidate the charge which any honest militant must make against such a grossly renegade strategy as is offered by the Costa Rican “vanguard.” For of course, such a logic is clear. Imperialism, class struggle, brings the threat of repression which hampers the work of building an electoral party in conditions of class peace. Therefore a status quo of peace between labour and capital is vital if this work of conservation, the buffer preventing class confrontation can go on.

The theme was repeated in Chile, the same reformist dreams of “The British Road to Socialism” being applied to a situation where striking workers were murdered, where any substantiation to the claim to a “democratic facade” had been ripped away a decade ago by the brutal dictatorship of Gonzalez Videla which outlawed the Communist Party and subjected it to persecutions all too familiar under the heel of open reaction, and where any democratic facade exists merely as a perfected weapon for ensuring the continuation of bourgeois dictatorship by drawing to its assistance in this conspiracy the renegade “leaders” of the working people.

Thus the Chilean Communist Party leadership hotly denied any revolutionary intentions ascribed to it:

“What is needed … is to secure a turn to the left in national policy. . . .

Through the medium of parliament, municipal councils and public meetings, the Party constantly advances and supports all projects and measures designed to benefit the people. Reactionaries in the ranks of the Christian Democrats accuse the Communists of seeking bring down the government in order to take its place. But the resolute stand taken by the Communists has demonstrated the baselessness of this and has shown that the Communists are prompted by neither opportunist nor narrow tactical considerations.”

(World Marxist Review: November 1965; p.47)

The whimpering denial of opportunism appears like a Judas mark in the programmes of these guilty men who commit every anti-proletarian crime it is possible to imagine given that they propose and preach class peace in a continent whose peoples subsist in indescribable conditions of brutalising poverty and misery. Yet with every increase in reactionary terror, the subservience of these handmaidens of the bourgeoisie increases in proportion. Each decisive parliamentary defeat, such as occurred in Chile in 1964, is followed by an ever more eager act of grovelling to an ever more contemptuous, corrupt, and confident bourgeoisie.

The Brazilian Communist Party, the leading mouthpiece of right revisionism in Latin America had a carefully mapped out plan for “utilising democratic rights and liberties.” In 1964 it was striving by means of a system of “structural reforms” to win power by:

“. . . establishing a national and democratic government and laying the groundwork for far-reaching changes that would ensure complete political and economic liberation and pave the way for socialism,”

believing that:

“the basic task of the vanguard forces in the struggle for structural reforms now is to build up the national and democratic movements. It is along these lines that we envisage the possibility of a peaceful revolution.”

(World Marxist Review: Jan 1964; p.22)

However, these hopes were not to be realised. The coup which overthrew Goulart in 1964 and installed the rule of the generals smashed the “democratic” illusions of these men of peace, and the naive veneer given to the theoretical estimation of the Party’s errors, attempts to draw attention from the fact that the leaders of the Brazilian Party, especially Prestes, are well versed enough in political manoeuvring not to suffer the lack of experience they claim. Thus, analysing the errors of the Communist Party:

“We ourselves had not been prepared politically and ideologically and had not prepared the masses to repulse the violence of reaction. As a result of a not altogether correct formulation of the Fifth Congress which took as its guidelines the thesis of the 20th Congress of the CPSU, we inaccurately assessed the possibilities of the ‘peaceful path’, seeing revolution as an idyllic process, free of clashes and conflicts.

Due to this incorrect assessment the leadership failed to see the danger signals. Instead of calling on the masses to fight the danger of a rightist coup, it continued to demand the holding of plebiscite.”

(C Prestes: World Marxist Review; June 1968; p-17).

“Although we sensed a certain tension (! Ed) we failed to act accordingly”.

(World Marxist Review, February 1965; p.28)

Despite the “self-criticism” of the above – conducted purely in the realm of the senses though it is – the conclusion of the right revisionists is a remarkable piece of un-dialectical nonsense. For the failure to prepare for violent struggle, to see through the bluff, of parliamentary ‘legality’, were mistakes of a “leftist” character!

“The Sixth Congress rejected the view that the main mistakes made by the Party were the consequence of a right deviation and noted that they were, on the contrary, mistakes of a leftist, putschist and petty bourgeois character.”

(C Prestes: World Marxist Review; June 1968; p.17)

This massacre of the truth is necessary because, despite their “self-criticism,” despite the objective failure of their line, despite the setbacks to which their opportunism has led, they still intend to pursue their “peaceful” cause. The coup which installed a “semi-fascist political regime” will be destroyed through:

“Active opposition and vigorous mass actions (which) will reduce the regime’s socio-political basis and could lead to its defeat by non-violent means. Democratic action can compel the reactionary and defeatist minority to retreat and restore democratic rights.”

(Ibid.; p.18)

Of course, “it may turn out too, that the Party and the people will be compelled to resort to other, more elementary and particular forms of armed struggle.” But we can rest assured that the right revisionist leadership of the Brazilian Communist Party will do everything in its power to be true to the spirit and the letter of the passive “may” and place it far behind in its list of priorities.

Such is the face of right revisionism in Latin America.

It has been against this background of betrayal that the working people and peasant masses have been compelled to resort to spontaneous armed struggle – struggle which was, and largely remains, outside the framework of control of the revisionist parties of the right. In those countries where such armed struggle has already taken root and the masses of the working people are beginning to be drawn into the struggle against semi-colonial dictatorship and foreign imperialist oppression, the further result of this has been that those, communist parties subservient to Soviet right revisionism have been forced to pay lip service to armed struggle and modify their more blatant parliamentary transition formulas in a bid to regain the influence within the armed liberation fronts which previously they were threatened with losing completely.

In its wider context, this pragmatic and opportunist response to the spontaneous growth of armed struggle reflects the shift in policy on the part of the Soviet revisionist leadership which has taken place since Khrushchev’s overthrow – a shift away from “all-round cooperation with US imperialism” to one of striving for the establishment of independent spheres of influence in areas hitherto comprising sectors of the US sphere. Within the overall task of developing this policy, a certain independent sphere of operations in relation to the national liberation movements of the underdeveloped colonial and semi-colonial sectors of the world has been allotted to the so-called “centrist” bloc of revisionist communist parties and “socialist” states, of which Cuba is one, and has given rise to the need for lip-service to armed national liberation struggle to be admitted to the platforms of some, though by no means all, of the Latin American communist parties under the influence of Soviet revisionism.

An example of this is offered by the criticism of the 20th Congress formulations on peaceful transition and peaceful coexistence made by the Brazilian right revisionist leader, Prestes. The alternative to the long discredited right revisionist formulations put forward is the flexibly leftist slogan of “armed struggle as a tactic, democratic constitutional advance as a strategy”. With its perceptible overtones of Kautsky and Bernstein, this formulation neatly solves the dilemma of how to maintain the long-cherished peaceful transitional shibboleths of right revisionism, now becoming so tarnished, simply by reversing Marxist-Leninist theoretical principles and relegating to armed struggle a subordinate tactical role serving the main strategy of seeking to secure minor palliatives to the increasingly oppressive life of the working people through reforms and the ballot box.

The outcome of these opportunist policy manoeuvres has been that, utilising the dominant hold which they exercise over the apostle of “violent struggle” in Latin America, Fidel Castro and the Soviet revisionist leadership has been able to control the transition to support for “centrist” revisionist policies on the part of certain Latin American Communist Parties without loosening in any way their traditional control over the leaderships of those parties – and even in some cases to increase it through the prestige added by the accession of Castroite “centrist” revisionism to the overall force available to Soviet policy needs.

As for “left” revisionism and Trotskyism, these take many forms in Latin America. The case of Guevara and Debray, who take an “ultra-leftist” position themselves, while condemning the trotskyites as revisionists, has already been analysed. The lessons of their position, i.e. of an armed struggle divorced from any political and class organisation of the working people, have been borne home most clearly following the collapse of Guevara’s mission in Bolivia. So much so, that Arguedas, a firm sympathiser of the guerrillas, wrote as his epitaph to Guevara:

“… he failed because he did not have the support of the peasants and because the Bolivian people did not know the action programme of the guerillas.”

A lesson so elementary that it should hardly have required the sacrifice of so many aspiring national liberation fighters to make it known. And indeed, the lessons of this, collapse of “ultra-leftist” method and morale accompanying Guevara’s experiment were not lost on those forces which represent the national bourgeoisie with more perception than Guevara. They can have acted as yet one more forceful argument for Castro strengthening his “centrist”‘ position.

Trotskyism in Latin America – as represented particularly in Guatemala and Peru is “left” opportunism which claims a “theory” of socialist revolution. This “theory” completely denies the national democratic stage of the revolution in a colonial-type country and insists that “socialist revolution”‘ is at any given moment on the order of the day.

Its effect is to isolate the genuine revolutionary forces from class allies who stand objectively for the national democratic revolution, and without whose added weight imperialism cannot be defeated and the national democratic tasks achieved. In practice, however, they resort to all manner of semi-anarchist, syndicalist and outright irridentist ideologies in order to win bases amongst the peasantry and urban poor, purveying such illusions as the direct growth of the village peasant-commune into socialism, the romanticism of the primitive subsistence economy and so on.

In strategy and tactics, their aim is to sow the usual kind of confusion associated with their name, advocating peaceful legal advance in the manner of the right revisionists whenever and wherever an actual revolutionary situation is close at hand, and pressing for ultra-revolutionary forms of struggle whenever and wherever the revolutionary tide is temporarily on the ebb turn. Thus they contribute directly to rendering the more militant vanguard forces an easy and isolated target for imperialist guns. Within these overall perspectives of betrayal, however, the “socialist revolution” for which they aim is, as with the right revisionist communist parties, in essence a peaceful one.

Thus all of these trends, “left” or right, spell defeat and betrayal for the revolutionary aspirations of the working people of Latin America and the decimation of their actual or potential organisations, of struggle.

At the helm of all this confusion and betrayal, seeking to unite the political manifestations of bourgeois and petty bourgeois thinking within the forces of the developing national democratic and socialist revolutions of Latin America under the one “super revolutionary” centre, has stood the Cuban revisionist leadership. They have encouraged every kind of anti-proletarian and anti-Marxist-Leninist theory and practice, inspiring the most infantile forms of petty bourgeois leftism, and nationalist euphoria; and finally, they have resolved the failure of both “left” and right revisionism into the doctrine of a “centrist” revisionism, a position which has emerged as a specific heritage of the Cuban-revolution.

It is to an analysis of the Cuban development itself, therefore, that we must now turn.

ASSESSMENT OF THE CUBAN REVOLUTION

The Cuban Revolution represented a phenomenon with two contradictory sides.

One was the fundamentally positive fact that US imperialist domination over Latin America had been breached for the first time, and a nation free of US imperialist oppression and ranged in struggle against it now stood as a symbol of anti-imperialist liberation struggle for the peoples of the continent.

The second and negative side was that, from its inception, the Cuban Revolution was carried through not under the leadership of the working class in alliance with the poor peasantry and urban petty bourgeoisie but under that of forces representing the national bourgeoisie. This epoch is characterised by the onset of a world pre-revolutionary situation and the beginning of the disintegration of the imperialist world system. Therefore, this class basis can only serve its fundamental class interest and achieve, the construction of a form of capitalist society in the newly emerged nations, in as much as it succeeds in manoeuvring with the offer of its neo-colonial and comprador services between the various competing imperialist groups. This is a strategy which leads sooner or later to the incorporation of the newly-independent nation, willy-nilly, into the sphere of influence of another imperialist group, most likely one which is hostile to the imperialist power from which independence had originally been won.

The economic in-viability of Cuba – a fundamental feature inherited from the one-sided development imposed by US imperialist domination in the past – together with its geographically isolated position and economically unbalanced character, placed Cuba in a precarious position which rendered its newly-won independence highly vulnerable.

Debray seeks in his book to paint a glowing and utopian picture of the Castro leadership which completely ignores the historical facts and sets out to enshrine every trite phrase and thought of this leadership as valid “scientific truths.” It remains a quite obvious fact however, that Castro and those who fought with him to overthrow Batista were not Marxist-Leninists. Castro claims that the “Marxism-Leninism” of the Cuban leadership was learned during the course of the struggle. The absence of scientific revolutionary principle guiding a clear strategic perspective – fundamental necessities in any revolutionary process, whether national democratic or socialist in character, in which the working class fulfils the leading role and which is guided by a genuine Marxist-Leninist vanguard party – and the opportunist manoeuvring to which that absence inevitably leads.

These are all explained away by Debray, with the claim that the revolutionary process was undergoing a justifiable period of “trial and error” – not, be it understood, trial and error in the application of Marxist-Leninist science to the revolution but quite abstractly in the search for a “Cuban form of Marxism.”

Castro and the inceptive forces of the guerrilla movement which he led were urban petty bourgeois revolutionists acting objectively as the leading representatives of the Cuban national bourgeoisie. The rebellion based on the Sierra Maestra drew to the ranks of the rebel army recruits from the peasantry, the mass base of the petty bourgeoisie and, in the absence of a leading role fulfilled by the working class, formed the social arsenal of the national bourgeoisie.

The movement claimed to be a liberal alternative to the tyranny of Batista, the stench of whose corruption was believed by Castro to be a constant source of embarrassment to the United States – the diaries of Guevara in his Bolivian campaign imply that, in begging aid from US monopoly interests under the threat that US holdings would be confiscated in the event of victory in Bolivia if support for the insurgents were not forthcoming. In this he was merely repeating methods prominent in the early stage of the Cuban revolution itself. The “left” revisionists of the Castro/Guevara stamp, attempt to explain these away as “tactical” covers for their real “Marxist” aims.

Throughout the course of the struggle Castro increasingly won the support of the urban petty bourgeoisie and middle classes – the involvement of the working class taking place considerably later. The tone of the Castro leadership on the role of the working class, was that the working class should be thankful for its liberation at the hands of the petty bourgeois intelligentsia and peasantry. However, support for the rebels against the tyranny of Batista was sufficiently overwhelming in its scope to cause the United States, refrain from any serious attempt to maintain Batista in power by overt force, and to give only that amount of aid to Batista which would preserve US face with lesser tyrants of the Batista stamp throughout Latin America. Although a covert attempt using Cuban exiles to restore a US colonial-type puppet regime was launched later, with the abortive Bay of Pigs landing. These were the factors which assisted the seizure of power by the Castro leadership in 1959.

The victory of 1959 brought Castro his first lessons in the attempt to carry through reforms of a national and democratic character in the epoch of imperialism.

Whilst at the comparatively early stage of establishing his bases in the Sierras, Castro had approached the lawyer, Urrutia, with an offer that he should form a government when victory was won – an offer which was accepted and implemented in 1959. Urrutia was a representative of the nascent Cuban national bourgeoisie, but nevertheless one of the first acts of his government was to approach US imperialism with assurances that his government intended to continue the semi-colonial status of Cuba, and to maintain the traditional agrarian structure of the economy and economic dependence on the US. It was only the rejection of these assurances by the US and the latter’s refusal to recognise the Castro regime which compelled the subsequent alignment with the Soviet Union.

As for Castro himself, it was a typical and in view of the later developments, an ironic expression of the spirit of the expediently opportunist freebooter that he was ready and willing to place his services at the disposal of the highest bidder, that he did not conceive of taking any initiative in the political and state affairs, of the new government.

All the evidence shows that Castro did not wish to govern on behalf of any defined class. He saw his role as that of a latter-day Garibaldi effecting a purely military liberation on behalf of abstract “liberty, equality and fraternity” and then handing over power to a vague and undefined “liberal intelligentsia”, i.e., to elements of the national bourgeoisie which, at that stage, had no conception of the revolution winning for them full national independence from US imperialism, and who merely wished to extend somewhat the scope of their economic holdings and the degree of their participation in and control over the state and administration.

According to the terms of the Urrutia government’s approach to the US, agrarian landlordism, the security of US holdings in both agriculture and such service industries as existed and the corresponding structure of feudal and comprador relations, were to remain essentially untouched and only subjected to a degree of mild reform. Only the short-sighted rejection by the US of these proposals for the reform of the semi-colonial structure of Cuba as it had existed under the corrupt and brutal reign of Batista finally compelled Castro and his followers both to take up themselves the reigns of state and to implement measures designed to secure independence from the USan independence the only available economic foundation for which was, ultimately alignment with the Soviet neo-imperialist bloc.

Amongst the first measures enacted was the land reform – a step which was essential if the base of peasant support was to be maintained. The confiscation of large holdings, particularly those owned by foreign capital, brought down the wrath of US imperialism.

For Castro the second dilemma and the second lesson had begun.

Despite numerous manoeuvres to outwit the Imperialists and to prevent their hostility and inevitable embargos on trade, the US in traditionally short-sighted fashion, declared its hostility and began to threaten Cuba with economic reprisals. Castro, countering this blackmail as best he could, entered into trade agreements with the Soviet Union, intending to walk the tightrope of a balance between the two blocs which would ensure Cuba’s economic future without drastic political shifts.

However, the breach was forced by US imperialism with the cutting of the quota for the import of Cuban sugar, forcing Castro to look elsewhere for cheaper supplies consequent upon the loss of US dollars. There followed a train of reprisals and counter-reprisals culminating in the Soviet offer to buy Cuban sugar (at an unspecified price) and to meet the Cuban demand for oil. The refusal of the US to refine Soviet oil, was met by Castro’s nationalisation of the key US interests in Cuba as a final and irrevocable reprisal. The course of Castro’s future was now set – a future which had originally never been intended or planned; but which had developed piecemeal out of the course of events. By 1963, according to Castro, the trade balance with the Soviet Union had risen to over one hundred million dollars.

This nationalisation, as we are now informed by the Cuban “Marxist- Leninists”, represented the “socialist revolution.”

However, in reality it represented an inevitable move which Castro, representing the national bourgeoisie, was forced to make given that he was fighting for his economic life and needed to trade with whomsoever would offer these services. But dependence on trade with the Union and being totally at the mercy of the defence protection, of the “nuclear umbrella” brought with it the expected penalty. Castro, the man who had hitherto publicly denounced Marxism-Leninism and denied any affinity with “communists” now began to air his brains in public and to take the first carefully rehearsed steps towards embracing Marxism-Leninism as avidly as he was later to embrace Khruchshev.

The previous emphasis on the role of the intellectuals as the leading force in the revolution, and as the “liberators of the working class” was now dressed up in a more conventional “Marxist-Leninist” disguise to accord with the announcement of the “socialist revolution” albeit a multifarious class definition typical of national bourgeois “socialism”:

“the labouring masses, the farmers, the student masses, the masses of the poor, the underprivileged mass of our nation, significant portions of the middle class, sections of the petty bourgeoisie, intellectual workers, made Marxism-Leninism their own, made the struggle for the Socialist Revolution their own.”

(F Castro: “Castro Denounces Sectarianism”, March 1962, p.13)

One of the penalties for the alignment with the Soviet Union was the loss of middle class support – a section which had supported Castro whole-heartedly during the struggle for power. These now filed in large numbers to Miami, plotting counterrevolution, and thereby weakening considerably the already overstrained technical and administrative cadre force and heightening social tensions. It was, at this point that the other long arm of revisionism, that from within Cuba itself, came into its own.

The history of the Cuban Communist Party offers an appalling record: of opportunism and class betrayal.

Based mainly on the urban working-class and aimed at building a mass social-democratic party, engaged in negotiations for economic improvements to the exclusion of almost all other forms of struggle and bound up with unprincipled agreements and alliances with whatsoever dictator happened to be in power, it was only to be expected that it could play no role in the struggle to overthrow Batista. Denouncing Castro as a mere adventurer, in the early days of the guerrilla struggle, and effectively assisting the sabotage of all attempts by the guerrillas to mobilise urban strikes,it only changed its tactics in the later stages, when the victory of Castro was already clearly inevitable. At this stage, certain leading revisionists were sent to join the guerrillas, with the aim of establishing the first bridgehead within the revolutionary forces in preparation for the later penetration of the right-revisionist party into the anti-imperialist front and the newly-founded national democratic state.

In the period immediately following the seizure of power, the clear anti-communist content of the half-hearted national democratic revolution which was “spontaneously developing,” effectively blocked the entrance of careerist-minded revisionist party members into positions of influence in the state. But this situation changed radically when apathy began to strike the middle class and comprador-orientated bourgeoisie after the confiscation of their property and the establishment of the open alliance with the Soviet Union, and especially after significant numbers of these strata had begun to desert to the Florida mainland. In the chaos of Castro’s “spontaneously developing” revolution the tried and tested organisation men of the revisionist party were drafted in large numbers in an effort to stem the growing confusion and pull together the basis of a workable economic and political system – matters which Castro had formerly considered could be left to merge spontaneously with the passage of time.

Thus arose the third of Castro’s dilemmas.

He had given up the political initiative almost completely. The revisionists, “always intent on mere political questions,” as Debray spurningly pointed, out, had after all played one better than the child of spontaneity, Castro. The price Castro had to pay for a viable political and, administrative apparatus was the achievement by the right-revisionists of an increasingly dominant role in party and state, despite their history of betrayal during the struggles leading to the overthrow of Batista.

Through a combination of external pressure from the Soviet Union, including economic blackmail, and internal penetration by the agents of Soviet revisionism, the indigenous revisionist leaders, Castro and his old guard of insurrectionists were gradually out-manoeuvred and sewn up in a web of inexorable dependence and commitment. No doubt, this was to the horror of the existentialist coterie of sun-seekers of the Sartre ilk who had seen in the Cuban development, the embodiment of their ideas about a liberal spontaneous revolution giving birth to an anarchistic utopia around which they could spin the subject matter for countless bestsellers.

The merciless straitjacket of unequal colonial-type economic relations, together with the necessity for a heavy defence programme in the face of the increasingly aggressive posture of US imperialism in the period prior to the 1962 crisis, represented further pressures inexorably pushing Cuba into dependence on the Soviet Union. The ominous features of the limited crop economy, had once again begun to dominate economic development.

The political counterpart of this situation of dependence, expressed the reciprocal need of the Soviet revisionist world centre to “explain” the obvious contradiction of a successful armed revolution taking place in an epoch the main feature of which was allegedly “the peaceful co-existence of states with differing social systems.” This was reflected in the corresponding determination of the Cuban right-revisionist party leadership to build and maintain the myth of Cuba as an example of “peaceful transition” in line with the precepts of the Khrushchevite international programme as laid down by the infamous 20th Congress Report:

“It was precisely in conditions of peaceful coexistence between states with different social systems that the socialist revolution triumphed in Cuba.”

(Letter of CC of CPSU to CC of CCP, March 30th, 1963. Foreign Languages Press, Peking, 1965. p. 507).

From the crisis of 1962, the starting duplicity of Castro in adopting his new subservient position was revealed.

Castro, who was later to announce demagogically:

“We will never make ideological concessions, and we will maintain an unyielding Marxist-Leninist position.”

(F. Castro: “This is our Line Havana 1963; p.79)

Then begins Castro’s remarkable history –

of bear hugs with the chief spokesmen of modern revisionism followed by denunciations of those same spokesmen;

of his statements supporting “peaceful struggle” followed by statements supporting armed struggle;

and his steadily increasing subservient role assisting the propaganda line of the Soviet revisionists in the Great Debate, with the deceptively “principled”, contention that “Division in the face of the enemy was never a revolutionary or intelligent strategy”;

all culminating in the carefully timed attacks on the Chinese government over alleged “cut-backs” in the promised rice quota.

This latter ‘news’ on the rice quotas, was leaked on the eve of the Three Continents Conference in Havana in order to cause the maximum damage to the prestige of the Chinese party and state throughout the national liberation movements. It was intended to act as an ameliorative gesture,  to off-set the criticisms of those aspects of Soviet policy which reflected the residual influence of Khrushchevite doctrine, now inimical to Castro’s new role. It was intended to demonstrate to the Soviet neo-capitalist class in unequivocal terms just where the support and sympathy of the Cuban national bourgeoisie and its “centrist” revisionist representatives lay in regard to the growing struggle between the Soviet and Chinese leadership.

Castro, however, in his attempts to reconcile service to the interests of his indigenous class, the Cuban national bourgeoisie, with the fulfillment of a comprador role on behalf of Soviet neo-imperialism, has often proved a difficult and demanding pawn.

Castro has sought to retain as an essential ingredient of his “centrist” revisionist position, the right to criticism of Soviet policies wherever these tended to conflict with the long-term aims of the Cuban national bourgeoisie.

The Guevara adventure in Bolivia thus represented an attempt to raise the bargaining counter of the Cuban national bourgeoisie with Soviet right revisionism, and its failure merely confirming the inadequacy of “leftist” methods of struggle and the superiority of the “centrist” revisionist disguise. In almost all cases, the crux of these Castroite and Gueverist criticisms has been those aspects of Soviet policy reflecting the continuation of a Khrushchevite stance towards US imperialism or its comprador puppets in Latin America. However the necessity which the Castro leadership feels for the military and economic protection which the Soviet Union alone can provide against US threats of aggression compels them to lend their support to every fundamental policy statement and action of the Soviet leadership, and to place Cuba at its disposal as the base of operations for right revisionism on the Latin American continent.

It was under Castro’s auspices that the OLAS and Tricontinental Conferences were able to serve the policy aims of Soviet neo-imperialism, which envisage not only the building of “anti-imperialist” and, where necessary, armed national liberation movements under “centrist” revisionist leadership, but also the incorporation of existing national bourgeois or even comprador-bourgeois states and governments into its sphere of influence. This has already been effected, for example, with a certain measure of success in Peru. Thereby effecting the reciprocal utilisation of both rightist and “centrist” revisionist policy methods. In this way, the former implements the classical techniques of international diplomacy and “power politics” through the direct agency of the Soviet Union on behalf of its neo-imperialist aims;whilst the latter seeks to mobilise the working people and their movements of struggle in the same neo-imperialist cause by presenting the necessary “left” demagogic appeal.

Thus it is that, under the overall condition of a former semi-colony newly emerged from imperialist domination, with an urban and rural proletariat, labouring peasantry and urban petty bourgeoisie amongst which revolutionary feeling is at a high level, any national capitalist class attempting to build a viable system of state capitalism can only hold out for itself any prospect of success provided that it can utilise to some degree the ideological strength and power for conviction and mobilisation of proletarian ideology and organisation of Marxism-Leninism.

This type of social development may be characterised in general terms as the demagogic abuse of the international working class and communist movement, of its world view, Marxism-Leninism, and of its organised strength and influence in order to bend them to the service of the enemies of the working class and socialism, amongst which the national capitalist classes of colonial-type countries emerging from imperialist domination must ultimately be placed, whatever class alliances may appertain in the period of the national democratic revolution.

In this light, the case of Cuba illustrates with convincing clarity an example of the harnessing of the potential or actual forces of the socialist revolution, the exploited and oppressed proletariat, poor peasantry and urban petty bourgeoisie, to the task of establishing not the socialist system under the democratic dictatorship of the proletariat, but a system of centralised state capitalism of a bureaucratic and comprador type under the dictatorship, albeit concealed by demagogic “left” phraseology, of the national bourgeoisie, and under the conditions of intensified class struggle and heightened inter-imperialist competition typical of the contemporary advanced stage the disintegration of the imperialist world system.

CONCLUSION

The collaboration between “centrist” and right revisionism which forms the predominant basis of policy amongst a majority of Communist Parties of Latin America, with the “Communist Party” of Cuba acting as a comprador-type overseer on behalf of the Soviet Union, reflects the unsuitability of  a purer “left” revisionism as an ideological mask enabling the national bourgeoisie to gain control of the national democratic revolutions and to determine their development and the class composition of their forces in their own class interest, in at least the majority of states concerned and under the objective conditions as they have shaped themselves up till the present time.

Left revisionism tends to find the appropriate objective conditions for its application and a fertile subjective ground for its dissemination and growth primarily in national and political terrains in which not only the objective conditions for the onset of the national democratic revolution are present – this in itself is also a feature of the situation in many American states – but also where a militant and politically conscious working class and a more or less powerful Marxist-Leninist vanguard are, or at the least have been in the past, to some degree in control of the revolutionary process of at least participants in it.

In view of the progressive undermining and final liquidation of the world communist movement through modern revisionism since approximately 1943-45, the presence of such features in a national democratic revolutionary movement in a colonial or semi-colonial country since World War Two, in spite of a majority of the leadership having long since fallen into the hands of “left” revisionists, must be attributed to the persisting influence of the Communist International and the continuing presence in the leadership of the leading cadres trained by it during the period prior to World War Two.

These features are, of course, typical of the development of the Chinese revolution and of the Communist Party of China. They are almost totally absent from the histories of the national liberation and working class movements of the Latin American states and their communist parties.

Where, however, such a Marxist-Leninist leadership, or at least a Marxist-Leninist contingent within a “left” revisionist led party and movement, is present, its defeat and dismemberment is clearly an absolutely prime necessity if the national bourgeoisie is to succeed in its aim of wresting the leadership out of the hands of the Marxist-Leninists and of consolidating it in the sole hands of their revisionist representatives.

The fact that, in Cuba itself, no Marxist-Leninist party, or even a Marxist-Leninist contingent within the leadership of the party, was present requiring ideological penetration, dismemberment and capture, in order to transform that party as a whole into a tool of national bourgeois aims and aspirations, rendered it easier for the petty bourgeois representatives of the national bourgeoisie to control the direction.

It rendered it possible for the petty bourgeois representatives of the national bourgeoisie to win victory in the national democratic revolution by purely military means, without’ the fusion of political and military forms of struggle and without a political party and an organisational centre for the mobilization of the masses, through the sole agency of a small elitist guerrilla force of predominantly petty bourgeois composition, is also symptomatic of the objective conditions and subjective characteristics of the movements of the oppressed in at least the smaller and weaker states of the Latin American continental mainland.

In spite of the many features specific and peculiar to it, the Cuban revolution, however, was not an isolated, once for all time phenomenon. Still less does it represent an example of “specific national roads to socialism” beloved of Khrushchevian revisionist “theory.” It took place and won victory, on the contrary, precisely within the general context of:

“a world pre-revolutionary situation. As in all pre-revolutionary situations, the primary aim of the class struggles, including national liberation struggles, now beginning to unfold on a world-wide front between the world proletarian forces and the imperialist bourgeoisie is a struggle to determine which of these two fundamentally opposed world class forces shall win the allegiance of the intermediate exploited and oppressed classes and strata, of which the most significant are the peasant masses of the colonial periphery of imperialism and the petty bourgeois and professional middle strata in the developed imperialist countries which are undergoing a process of intensified proletarianisation, and so to achieve on behalf of its class interest the decisive strategic advantage in the coming final stages of the world proletarian socialist revolution.”

(Programmatic Manifesto of the Marxist-Leninist Organisation of Britain; p.22)

The upsurge of national liberation struggles and national democratic revolutions in the colonial and semi-colonial lands, including those of Latin America, forms one of the most prominent features in the process of disintegration of the world imperialist system at the present stage in the development of the general crisis of capitalism.

It is they which are contributing directly to the process of disintegration of the established imperialist power groups and to the break-up of the existing inter-imperialist balance of power, and which are effectively assisting in the formation of new imperialist-type power groups and a new inter-imperialist balance of power centred around the entry of the new neo-imperialist or state capitalist nations – primarily the Soviet Union, but including, at a lower stage of capitalist development, China and India, the total population resources of which alone amount to some 1,400 millions – into the already saturated capitalist world market.

As far as the future development of the world proletarian socialist revolution is concerned, the crucial issue confronting the national liberation movements at the present time is, however, the issue of which class shall lead the revolution, the national bourgeoisie or the working class.

On the outcome of this issue depends the solution to the question, of absolutely fundamental significance, as to:

“Whether or not the working people of the developing nations at present fighting for their liberation from imperialist colonial enslavement, for national independence and democratic rights and liberties, will succeed in bypassing the perspective of a more or less protracted period of capitalist development and will succeed in establishing new socialist states under the democratic dictatorship of the proletariat?”

Such a victory for the world proletarian socialist revolution  would so weaken the already intolerably unstable and crisis-ridden world capitalist system as to render its continued operation virtually impossible.

Alternatively, on the other hand, the victory of the national democratic revolution in the colonial-type lands would merely  lead to the establishment of new independent capitalist states which will thus provide a sorely needed extension to the total area and resources of the world capitalist system and so give it a new lease of life. This latter has already taken place in a whole number of formerly colonial or semi-colonial lands since the end of world war two, including People’s China, India, Egypt and, of course, Cuba.

The entire evidence provided by the experience of the new features in the development of the world proletarian socialist revolution since World War Two indicates strongly that

Only when the working class movements in the developed countries join with the working peoples of the colonial-type lands to form a common world-wide anti-imperialist front,

Only when powerful and influential Marxist-Leninist parties, capable of securing leadership over the entire revolutionary process in both types of countries have been built and are able to wield that decisive ideological and political initiative and influence which can ensure the leading role being fulfilled by the working class in both strategic world sectors, and so laying the basis for the uninterrupted transition of the national democratic to the socialist revolution in the colonial-type lands and for the victory of the latter in both; and, finally,

Only when the world Marxist-Leninist leadership of the world proletarian socialist revolution has developed to a point where a mighty Marxist-Leninist international is forged capable of uniting, integrating and directing the revolutionary struggles in both world sectors against the common imperialist class enemy, of elaborating a world strategic and tactical programme of general offensive on all fronts and in all sectors based on advanced scientific theory –

Then, and only then, will it be possible for the working people of any one sector, in the developed or the under-developed lands, to advance to the victory of the socialist revolution and so to bring the epoch of capitalism to its close and to commence anew, and on an infinitely higher level than previously, the epoch of world-wide socialist construction.

For the present; therefore, and until such time as the revolutionary proletariat in both the developed and the colonial-type lands, realise the primary and indispensable tasks of revolutionary leadership and organisation, particularly as regards the building of the Marxist-Leninist vanguard, the predominant influence in the national democratic movements in the underdeveloped colonial world sector is likely to remain in the hands of the national bourgeoisie and its petty bourgeois revisionist representatives.

But each and every such instance of a national arena of capitalist development being opened up, under the conditions of a congested and saturated capitalist world market, merely serves, in the longer or perhaps the shorter run, to add new components of mounting contradiction to the already unstable situation in the world capitalist system. The monopoly capitalists of the developed imperialist countries, faced with the shrinking of the relative size and resources of the colonial sector relative to the developed sector, are attempting to obtain a significant intensification of the rate of exploitation in both the colonial areas that remain and, in an effort to offset the inevitable decline in super-profits, in the developed countries themselves.

Only provided that Marxist-Leninist vanguard parties are built in both the developed and the colonially subjugated sectors of the world will this intensification of exploitation and oppression result in a qualitative raising of the level of class militancy and capacity for struggle of the working masses, to their revolutionisation.

In other circumstances, including those at present appertaining in which the leading influence is fulfilled by social democratic and right revisionist representatives of monopoly capital in the developed countries and by a combination of right, “centrist” and “left” revisionist representatives of the national or the comprador bourgeoisie in the colonial-type countries, the outcome of the world reactionary offensive now in preparation could equally well be a series of bloody defeats for the working people and their organisations of struggle and the descent of the blackest night of fascist repression that the world has yet seen.

The law of uneven development will undergo and is undergoing an equally profound and far reaching intensification of its mode of operation, thus accelerating the process of break-up of the existing imperialist and capitalist power groups and the formation of new ones anxious to secure a re-division of the total area and resources of maximum exploitation available to the capitalist world system, which are continually shrinking relative to the rapidly increasing rate at which capital tends to be amassed, and which are indispensable for securing that maximum rate of profit so essential if the inherent tendency under state monopoly capitalism for the rate of profit to fall is to be offset. These fundamental contradictions in their turn prepare the conditions for the outbreak of yet another imperialist world war more devastating both in its scope and its revolutionary effect than any previously known, and so also preparing for the transformation of that war, in area after area, country after country, into, socialist revolutions.

These are the profound and climactic contradictions which are even now accumulating under the surface of the world capitalist system, and it is against this background that the teachings of Guevara and Debray relative to the struggle in Latin America must be critically evaluated.

Marxism-Leninism teaches, and all experience of the world’s working class, and oppressed peoples in struggle confirms that only through the unity of the working class of all lands, forged through the exercise of leadership and an overall guiding function on the part of powerful Marxist-Leninist parties, and through the unity of all non-proletarian classes and, strata behind that Marxist-Leninist proletarian vanguard in a mighty world anti-imperialist united front, can victory in the national-democratic revolution in the colonial-type lands be secured in such a way as to ensure that that victory leads:

Not to the development and consolidation, on however temporary or unstable a basis, of new, independent neo-capitalist states (which will merely substitute exploitation by the established imperialist oppressor nations for exploitation by the indigenous national bourgeoisie and so assist in increasing, again on however temporary or unstable a basis, the total arena and resources of the world capitalist system and to lengthen by a span of a few years or decades its bloodthirsty, profit hungry life);

But that that victory will lead instead to the weakening and restricting of its arena, resources and span of life, to the choking of the arteries feeding it with the super profits which are its very life blood, to the formation of a mighty and growing chain of national democratic and socialist revolutions encircling it with a steel ring of proletarian power which steadily suffocates and finally annihilates it.

In the developed countries, it is bureaucratic social democracy, reformism, revisionism of the right and trotskyism which constitute the chief weapons of the monopoly capitalist class in frustrating and diverting the potential or actual revolutionary energies of the working class and working people.

In the colonial-type lands, it is “left” and, where appropriate, “centrist” revisionism, likewise assisted by trotskyite disruption, which fulfill this function. Within this international apparatus of counter-revolutionary disruption, a certain clearly definable division of labour can be discerned.

It is the function of social democracy and reformism in the developed countries, and of liberal-anarchist ideas of spontaneous revolution in the colonial type areas of maximum exploitation, to act respectively as the instruments for undermining the unity of the class forces themselves, of the mass base, potential or actual, of the developing class struggle and/or revolutionary movements.

On the other hand, it is the function of revisionist teaching – in developed countries mainly of the right, and in colonial-type lands mainly of either “left” or “centrist” varieties – to weaken the struggle waged by the most advanced and class conscious proletarian elements to forge powerful, steeled and united Marxist-Leninist vanguard parties without which the socialist revolution and the establishment of the dictatorship of the proletariat remain mere empty dreams, vistas of mechanical scheming or the subjective projection of idle wishes.

In the relationship between mass base and vanguard, it is the vanguard which must first be establish even if only in embryo, if the whole revolutionary process in a given country is to develop into the structure of proletarian power capable of incepting and carrying through the socialist revolution directly in the case of the developed countries, through the intermediate stage of the national democratic revolution in the case of the colonial-type lands.

In both these types of revolution, a clear kinship exists between the older variants of bourgeois ideology typical of a capitalist class in the period of its youth, represented by liberal spontaneity and anarchistic insurrectionism of the Garibaldist or Blanquist type, and the more sophisticated right, “left” and “centrist”‘ variants of revisionism which form typical anti-proletarian ideological weapons of an aspiring capitalist class in an underdeveloped country which is struggling for ascendancy and independence within a world environment and under the conditions of an epoch in which capitalism is lying mortally sick upon its deathbed.

Both deny the revolutionary historical mission of the proletariat;

Both deny the need for the violent, forcible overthrow of the rule of the capitalist class – “left” revisionism advocating the use of armed force solely against the comprador, imperialist-orientated section of the capitalist class in a colonial-type country;

Both deny the need for the independent revolutionary vanguard of the proletariat armed with scientific Marxist-Leninist theory.

The petty bourgeois insurrectionist theories of Guevara and Debray form the logical inheritance and continuation of the classical ideas of spontaneous revolt first developed by the European bourgeoisie in the 19th century. The characterisation of the bourgeois ideological basis and antecedents of “left” revisionism contained in the Report of the CC of the MLOB, “Proletarian Internationalism: The Key to Victory in Anti-Imperialist Struggle and Socialist Revolution”, is as applicable to the unsuccessful, misapplied and naive variant of “left” revisionism concocted Guevara and Debray out of the historically superceded lees of liberal anarchist theories of spontaneous “uprisings of the freedom loving people” as ever it was to the more astute variant of “left” revisionism devised by Mao Tse-tung:

“When we consider the development of the bourgeois-democratic revolution in Europe, we find that the petty bourgeoisie , played a generally analogous role to the one it later came to play in the colonial national democratic revolutions of the epoch of imperialism. . .the prime need (of the capitalist class – Ed.) was to hold in check the independent revolutionary class aspirations of the proletariat, and to harness its energies to the task of the bourgeois democratic revolution whilst simultaneously preventing them from leading to the fulfillment of the revolutionary aim of socialism and the dictatorship of the proletariat. In all the developing capitalist nations of Europe to which the bourgeois democratic revolution spread in 1848-9, therefore, the leading role was played by bourgeois or petty bourgeois leaders..

‘Leftist’ phraseology and the rabble-rousing slogans of anarchism are always and everywhere the essential disguise of rightism, of policies designed to assist and strengthen the class position and forces of the capitalist class in the face of the growing or potential offensive of the proletariat. . . . Just as the counterpart in practice of the utopian theories of Proudhon were the state sweatshops for the unemployed workers of Paris established by Louis Blanc, similarly Mao Tse-tung’s leftist battle-cries directed at the emerging and developing, but as yet immature, proletarian classes and their potential petty bourgeois allies in the colonial lands have their essential counterpart in the so-called- “Three-way Revolutionary Committees”, in which the long-discredited.utopia of the “union of capital and labour”, is dragged from the oblivion to which Marx condemned it…”

(Proletarian Internationalism: Report of the CC of the MLOB in “Red Front”, March/April 1968; p.vii)

With the defeat of this peculiarly Latin American revisionist hybrid, the same demagogic mantle of revisionist deception has fallen upon the shoulders of the “centrist” revisionists headed by the Castro clique, acting as a semi-independent “left”-wing of the Soviet neo-imperialism. If this new and perhaps even more, insidious ideological and political weapon of the national bourgeoisies of the Latin American states is to be exposed and defeated and the hegemony of the working class and of scientific Marxist-Leninist theory in the Latin American revolutionary movement secured, a persistent-and wide-ranging struggle must be waged by the Marxist-Leninists of all lands against it.

There are no short cuts to the socialist revolution. The struggle to develop and change man’s social practice, and the thought processes which consciously guide that practice, is a protracted and arduous one. In the course of this struggle, the development of conscious revolutionary thought and practice on the part of the most advanced and consistently revolutionary class produced by history, the proletariat, is characterised at all stages by the close interaction of theory and practice, culminating in the scientific principles of Marxism-Leninism and of its fundamental theoretical guide to action, dialectical-materialism, and their embodiment in the vanguard class party of the new type.

This final embodiment of the science of socialist revolution and of socialist revolution as a science, when theory and practice become so united as to be indivisibly fused together, is precisely what the “social scientists” of the bourgeoisie are most concerned to frustrate and disrupt by whatever means they find to hand inherited from the theories and practice of pre-scientific utopian or reformist schools – and amongst these modern “mystical schoolmen” of piecemeal reform or spontaneous revolt must be included not only such representatives of the right as Khruschev, Togliatti or Gollan, but also such leftist figures as Debray, Guevara and Castro.

The struggle to build the vanguard Leninist party of the proletariat involves such tasks as the inner-movement struggle within the revisionist and reformist parties and organisations, work amongst all sectors of the working population to win them for a common front of struggle, actions at the most basic level to build militant, class-orientated organisations where previously none existed, the achievement of a correct balance between legal and illegal, armed and political, forms of struggle, and so on. At every level, the process is an extremely complex and many-sided one. It is a test which only those who genuinely uphold, the cause of the working class and working people are prepared to stand.

That is why Guevara, Debray and others present such a disillusioned picture to the world once they enter from the realm of their subjective fantasies into the world of class reality. In their “theory” the peasantry existed as an idealised force which could do no wrong; the grim reality of the Bolivian adventure revealed besides Debray’s dilettantism, the fundamental scorn for the peasantry into which Guevara’s earlier idealism was transformed as a consequence of his inability to change that reality. The diaries, with their self-pitying descriptions of ignorant and suspicious peasants threatening to betray the self-styled advance guard of the revolution constitute an elitist petty bourgeois testament which marks a disgaceful end for those who had claimed to aspire so high. And it is perhaps from this last fact that the final lesson of the Guevara-Debray affair can be most clearly drawn: that the subjective desires of any aspiring revolutionary are less than nothing in value to the revolutionary cause and will be cast aside as such if they are not based on Marxist-Leninist scientific theory.

By Cmde M.S. For the MLOB;

Dated 1968

Source

The Great Soviet Encyclopedia on John Adams

US_Navy_031029-N-6236G-001_A_painting_of_President_John_Adams_(1735-1826),_2nd_president_of_the_United_States,_by_Asher_B._Durand_(1767-1845)-crop

Adams, John

Born Oct. 19, 1735; died July 4, 1826. American political leader and statesman.

During the American Revolution (1775–83), Adams was a member of the First and Second Continental Congresses. He took part in the negotiations which ended with the signing of the Treaty of Paris (1783) between the USA and Great Britain; moreover, he became the first US minister to Great Britain (1785–88). Adams later became one of the leaders of the Federalist Party, which represented the interests of the conservative wing of the American bourgeoisie. During the years 1789–97 he served as vice-president and from 1797 to 1801 as president of the USA. Adams’ administration was marked by the adoption in 1798 of the Alien and Sedition Acts, which were directed against revolutionary emigrants from Europe and which made it difficult to acquire American citizenship. The Sedition Act provided for imprisonment for criticizing the government.

REFERENCES

Efimov A. V. Ocherki istorii SShA, 2nd. ed. Moscow, 1958. Chapter 2.
Morse, J. T. John Adams. Boston-New York, 1912.

The Great Soviet Encyclopedia on Thomas Paine

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Paine, Thomas

Born Jan. 29, 1737, in Thetford, England; died June 8, 1809, in New York (USA). Public and political figure in the USA and Great Britain. A member of the revolutionary wing of the 18th-century Enlightenment.

In 1774, Paine left England for North America, carrying a letter of introduction from B. Franklin. He soon emerged in the forefront of the proponents of independence for the British colonies. In the pamphlet Common Sense (1776), Paine,taking as his point of departure rationalist theories of natural law and the social contract, advocated the idea of the sovereignty of the people and the right to revolution. He demonstrated that it was necessary for the North American colonies to break away from Great Britain and form an independent republic. The ideas expressed in Common Sense were reflected in the Declaration of Independence (1776). Paine, like Jefferson, favored the abolition of slavery.

During the War of Independence in North America (1775–83), Paine wrote a series of 13 pamphlets under the title The American Crisis (1776–83). From 1777 to 1779 he was secretary of the congressional Committee for Foreign Affairs,and in 1781 he took part in the Paris negotiations with the French government concerning aid for the North American colonies.

Paine was an ardent supporter of the French Revolution, which broke out while he was in Great Britain. In the treatise The Rights of Man (1791–92) he developed the ideas of popular sovereignty and republicanism and defended the revolutionary principles of the French Declaration of the Rights of Man and of the Citizen. Paine’s book was banned in Great Britain, and he was forced to emigrate to France, where he was elected a member of the Convention. However, he broke with the Jacobins on the question of the execution of Louis XVI, and in late 1793 he was put in prison, where he spent about a year. As a result of his experience in France, his social views developed, particularly his criticism of bourgeois property relations from a petit bourgeois standpoint. In Agrarian Justice (1797), he condemned the system of property distribution and speculated that labor is the source of capitalist profit. He developed a Utopian plan for state support of the poor through taxation of the propertied classes and through the nationalization of land under a redemption system.

Paine was among those who introduced atheistic traditions into America. In the Age of Reason (1794) the force of reason is decisively pitted against religious delusions. As a philosopher, Paine is perhaps best described as an inconsistent metaphysical materialist.

In 1802, Paine returned to the USA, where, persecuted by reactionary political and religious circles, he died in poverty. The views of Paine—the most consistent spokesman of the radical democratic tendency in the American sociopolitical movement of the late 18th century—directly influenced the shaping of the ideology of the Chartist movement in Great Britain.

WORKS

The Complete Writings, vols. 1–2. New York [1945].
In Russian translation:
Izbr. soch. Moscow, 1959.

REFERENCES

Marx, K., and F. Engels. Soch., 2nd ed., vol. 2, pp. 598–99; vol. 10, p. 365.
Aptheker, H. Istoriia amerikanskogo naroda [vol. 2]: Amerikanskaia revoliutsiia 1763–1783. Moscow, 1962.
Gromakov, B. S. Politicheskie i pravovye vzgliady Peina. Moscow, 1960.
Gol’dberg, N. M. Tomas Pein. Moscow, 1969.
Parrington, V. L. Osnovnye techeniia amerikanskoi mysli, vol. 1. Moscow, 1962.
Conway, M. D. The Life of Thomas Paine, vols. 1–2. New York-London, 1892.
Aldridge, A. O. Man of Reason: The Life of Thomas Paine. Philadelphia, 1959.

I. P. DEMENT’EV

The Great Soviet Encyclopedia on Thomas Jefferson

Official_Presidential_portrait_of_Thomas_Jefferson_(by_Rembrandt_Peale,_1800)

Jefferson, Thomas

Born Apr. 13, 1743, in Albemarle County, Va.; died July 4, 1826, at Monticello. American statesman and public figure.

On his mother’s side Jefferson was descended from a family of rich Virginia landowners. He received a broad education. From 1769 to 1774 he was a deputy to the Virginia legislature. He helped organize a revolutionary group in Virginia—the Committee of Correspondence, which was modeled after similar committees in other colonies. In 1775, Jefferson was elected a deputy to the Continental Congress, which had decided on the separation of the North American colonies from Great Britain. He was the author of the Declaration of Independence, which Congress accepted during the War for Independence in North America (1775-83). Jefferson intended to extend the rights enunciated in the declaration to Negro slaves, but the slaveowners were opposed. He played an active role in the democratization of the social structure of Virginia.

As a member of the Virginia House of Delegates between 1776 and 1779, Jefferson took part in a review of extant legislation. The feudal order in landownership—primogeniture, semifeudal rent, and prohibition of the sale of lots of land—was abolished. He was the author of the Statute on Religious Freedom, and he worked hard for its adoption, influencing the constitutions of other states and the constitutional provision for the separation of church and state in the USA. In 1784, Jefferson urged Congress to nationalize the lands of the West and prohibit slavery in all newly admitted states. However, the latter suggestion was accepted only in connection with the Northwest Territory. From 1779 to 1781,Jefferson was governor of Virginia, from 1785 to 1789, US minister in Paris, and from 1790 to 1793, secretary of state in G. Washington’s first administration. He welcomed the Great French Revolution, but he considered it expedient for the USA not to participate in the military struggles in Europe.

Jefferson was an outstanding representative of the left revolutionary wing of the 18th-century Enlightenment. Expressing the interests of farmers and the petite bourgeoisie, he criticized the American Revolution for its incompleteness and pointed to the necessity for a democratic solution of the agrarian question, the abolition of slavery, and the granting of political rights to all the people. He considered the Constitution of 1787 insufficiently democratic and argued that it required a supplementary bill of rights. Jefferson carried on a long polemic with the leader of the Federalist Party, A. Hamilton, who represented the interests of the powerful bourgeoisie of the Northeast. Jefferson considered private property a natural right of man and saw in it the basis of the harmony of interests of society, influenced by the Physiocrats, he exaggerated the role of agriculture, considering it the main source of social wealth. Later, he recognized the necessity for the development of American industry and supported a strict equilibrium between agriculture, industry, trade, and banks. He advocated a democratic solution of the agrarian question.

Jefferson’s disagreement with the policies of Washington’s administration forced him to retire from office. He led the opposition Democratic-Republicans, and his democratic slogans were supported by the people. In 1796, Jefferson was elected vice-president, and from 1801 to 1809 he was president of the USA. As president, Jefferson pursued a moderate policy of compromise among the various strata of society. During his presidency many reactionary laws that had been adopted during the presidency of his predecessor, J. Adams, were abolished, and the army, navy, and government bureaucracy were reduced. In foreign affairs, Jefferson’s presidency was distinguished by the acquisition of French Louisiana in 1803 and the establishment of diplomatic relations with Russia in 1808-09. In 1807 he declared an embargo that prohibited the export of all goods from the USA, in the hope that this would cause difficulties for Great Britain and France, which had been seizing American merchant vessels. However, the embargo hurt primarily the economy of the USA, and it was lifted in 1809.

After he left the presidency, Jefferson retired from political life. Progressive forces in the USA draw on the best Jeffersonian traditions in the struggle for peace and democracy.

WORKS

Papers, vols. 1-17. Edited by J. P. Boyd. Princeton, N.J., 1950-65. The Writings of Thomas Jefferson, vols. 1-20. Washington, D. C., 1903-04.

REFERENCES

Marx, K., and F. Engels. Soch., 2nd ed., vol. 16, p. 17.
Foster, W. Ocherk politicheskoi istorii Ameriki, 2nd ed. Moscow, 1955. (Translated from English.)
Efimov, A. V. Ocherki istorii SShA, 2nd ed. Moscow, 1958.
Ocherki novoi i noveishei istorii SShA, vol. 1. Moscow, 1960.
Zakharova, M. N. “O genezise idei T. Dzheffersona.” Voprosi istorii, 1948, no. 3.
Al’ter, L. B. Burzhuaznaia politicheskaia ekonomiia SShA. Moscow, 1971. Pages 64-70.
Parrington, V. Osnovnye techeniia amerikanskoi mysli, vols. 1-2. Moscow, 1962. (Translated from English.)
Kimball, M. Jefferson. [Series 1-3.] New York [1943-50].
Cunningham, N. E. Jeffersonian Republicans.… Oxford, 1958.
Peterson, M. D. The Jefferson Image in the American Mind. New York, 1960.
Malone, V.Jefferson and His Time, vols. 1-3. Boston, 1948-62.

A. A. FURSENKO

The Great Soviet Encyclopedia on James Madison

James_Madison

Madison, James

Born Mar. 16, 1751, in Port Conway, Va.; died June 28, 1836, in Montpelier, Va. American statesman.

Madison took part in the War for Independence (1775-83). He was the author of a proposal that formed the basis of the American Constitution (1787). In a series of articles written for the press, Madison defended the new constitution and advocated broadening the power of the central government. After first supporting the Federalists, Madison later joined the Republicans and headed their right wing in Congress. From 1789 to 1797 he was a member of the House of Representatives. From 1801 to 1809 he served as secretary of state in the administration of T. Jefferson. He was president of the USA from 1809 to 1817. In the first period of his presidency Madison was occupied primarily with foreign policy problems connected with the Anglo-American War of 1812-14. During his second term he advocated the general development of American industry.