Smash the IMF and World Bank!
Fight racism - Defend the right of Asylum
While borders go down for capital and goods, the rich countries are building new walls against immigrants and refugees. The formation of a 'Fortress Europe' by the European Union (EU) has, for example, made it almost impossible for anyone to be granted asylum in the EU. Racism and sexual discrimination have always been used as weapons by the bosses and the politicians to attempt to divide and rule the working class. But we have to stand together to fight for jobs and a decent life. Only a united movement of workers and youth can prevent the growth of right wing, nationalist parties. Unless this is done these parties can hi-jack a popular reaction against global capitalism. The far right and reactionary nationalists offer no solution. As we have seen in the ex-Yugoslavia society can enter a vicious circle of violence and conflicts caused by national and ethnic divisions.
Racism must be stamped upon wherever it raises it's head. This can only be done by actions organised by trade unions, community groups, immigrant organisations, anti-racist groups, etc. A gulf between the classes We should not forget, moreover, that globalisation has also led to much greater social polarisation and class division within the advanced capitalist countries, especially within the US, the most powerful. A huge section of the population, especially immigrants and people of colour, live and work under Third World conditions. Forty-five million people in the US live below the poverty line, while over 40% have no health insurance.
The destructive effects of neo-liberalism are not merely excesses of capitalism, or just a particular, accidental mutation. They reflect the fundamental, essential character of capitalism in this period. Since the end of the long post-war boom in the mid-1970s, ("the golden age" of capitalism 1950-75) the world economy has entered into a period of crisis and stagnation, as the level of economic growth has declined around the world. During the post-war period, the ever-growing economic "pie" created the basis for capitalists to have high profits while allowing workers to receive higher wages and benefits.
Global capitalism after 1975
The crisis or stagnation in the world economy since the 1970s means that the only way capitalists can maintain their rate of profit has been a redistribution of wealth, through an attack on workers. The main aim for the entire 1980s and 90s has been busting unions, lowering wages, and dismantling the welfare state. This basic programme has been carried out in nearly every country around the world, regardless of which political party has state power. This suggests that neo-liberalism is no mere accident. It is the inevitable, inescapable logic of the world economy in this period. For big business to remain competitive in this period of capitalist crisis, there must be a relentless drive to lower workers wages and living conditions.
But what about the 1990s boom in the US economy? Media pundits glow in adulation at the marvels of the "new economy". The real position of the US economy, however is quite unsound. Serious strategists of big business agree that not all is rosy. Business Week's economics editor Michael Mandel recently warned, "Sooner, rather than later, the New Economy boom is likely to be followed by a New Economy bust - a recession and stock market decline that could be much deeper than most people expect."
Meltdown in Asia
The 1997-98 Asian crisis marked the beginning of a major world downturn in the economy, plunging 40% of the world into the worst recession since World War II. So far, the US and Europe have remained immune from the "Asian flu." But it is only a matter of time until the US and European economies sink into a recession. Paradoxically, the Asian crisis temporarily strengthened the US economy. With billions of dollars of speculative capital fleeing Asia, most of it ended up settling in the US stock market, pushing Wall Street up. This only further fuelled the US expansion. The entire world economy is now perched in an extremely precarious position - resting completely on the US bubble economy, which in turn rests upon the Wall Street bubble. It is only a matter of time before these bubbles will burst, and the US, Europe, and the rest of the world economy will plunge into a sharp slump and crisis.
Colonialism: Old and new
"Better, sometimes to have multilateral agencies ... prepare the path for direct Western corporate investments than for the U.S. to dictate to foreign governments."(Baltimore Sun, June 18, 1981)
After World War II, mass movements of millions for national independence and self-determination threw the colonial powers out. But imperialism has not disappeared - it has just changed its spots. The former colonial world has won formal independence, but real political and economic policy is still dictated from the imperialists and big business. Even Jesse Jackson, a member of the Democrats in the US, said at a conference of African nations: "They used to use the bullet or the rope ... now they use the World Bank and the International Monetary Fund."
An iron grip
Today imperialist domination is economic, maintained by control of the world market, the power of the multinationals, international financial institutions and backed up with immense military might. If necessary, imperialism will militarily intervene in defence of its markets. Today, we can use the term "neo-colonialism", to describe how imperialism has managed to maintain an iron grip on the less developed world. The multinationals are in control of the world market and world trade. The biggest three banana companies have 80 percent of world banana trade: the three biggest cocoa companies have 83 percent of world cocoa trade, etc. The poorer countries are forced to sell cheap and buy more expensive goods from the West. The constant worsening of their trading position with the West, particular since the mid1970s, has created a poverty and debt trap. Even if the poorer countries increase their volumes of export, they end up with less in revenues of income thanks to the falling value of their export. That is one main reason why the gap between the rich and the poor countries increased from 11 to 1 in 1913 to 74 to 1 in 1997.
With fantastic technology, large-scale industry, and enormous financial powers these companies and the main capitalist governments control the fate of the world. The major imperialist states reserve the right to plunge parts of the world into war for the sake of maintaining their power and profits. For example, the USA bombed Iraq "back to the Stone Age" in 1991 for the sake of oil profits. As a senior American official remarked candidly at the time "If Kuwait grew carrots, we wouldn't give a damn." Of course, the main capitalist powers also compete with each other on the world market and for resources and spheres of influence. At the present time the powers back various sides in bloody wars tearing large parts of Africa apart, such as the Congo. During world economic downturns or slumps each capitalist class will fight tooth and nail to defend its place in a shrinking market.
No matter how the imperialist powers try to dress up these reactionary policies in nationalist and jingoistic language, the results mean disaster for workers and youth in the advanced capitalist countries and neo-colonial world.