>Date: Sun, 30 Apr 2000 12:36:40 -0400
>From: Andy Lehrer <[EMAIL PROTECTED]>
>Reply-To: [EMAIL PROTECTED]
>
>
> Committee for a Workers' International
>
> PO Box 3688,
> London,
> E11 1YE
> E-Mail: [EMAIL PROTECTED]
> Tel: ++ 44 20 8558 5814
> Fax: ++ 44 20 8988 8793
>CWI Website: http://www.worldsocialist-cwi.org
>Socialist Alternative (Canada): http://www.socialistalternative.net
>
> MAY DAY 2000
>
> Global Capitalist Turmoil And The Future For Socialism
>
>THE CWI, Committee for a Workers' International, sends May Day greetings
>to the working class and oppressed peoples of the world.
>
>At the dawn of a new century capitalism is entering a new, deeper
>crisis, as witnessed by the turmoil on the stock markets. More than ever
>working people need the guiding themes of May Day - international
>struggle, solidarity and socialism.
>
>Despite police repression, thousands have protested in Washington this
>April against the effects of globalisation, neo-liberalism and
>capitalism, during a meeting of the World Bank and IMF. CWI members in
>the US have taken part in these protests, which mark an important stage
>in the re-development of solidarity between workers, youth and the
>oppressed internationally.
>
>The representatives of capitalism attending this event have been in a
>state of siege. Not only do they have angry protesters to contend with
>but also a serious undermining of their system, caused by the enormous
>crash on the international stock markets and its consequences.
>
> Stock market crash
>
>The market economy - the world system of capitalism - means mass
>unemployment, worsening living conditions and poverty. The dramatic fall
>in world stocks and shares is a reflection of the irrational and
>destructive nature of the capitalist market.
>
>In the week leading up to 16 April 2000 Nasdaq, the biggest player in
>the 'techno-boom', lost a quarter of its value in one week. On Friday 14
>April, Wall Street's three major stock indices recorded their biggest
>one-day point declines ever. By the time investors had finished for the
>day about a trillion dollars had been lost. Microsoft has had $239
>billion, the equivalent to the gross
>domestic product of Belgium, wiped from its value.
>
>At the time of writing it is reported that massive fall in share values
>have taken place in Asia and Europe. Up to �40 billion was lost in
>London on Monday 17 April. Asian markets suffered dives of up to 10%.
>Whatever else happens to the financial markets and world economy in the
>coming days, weeks and months, the huge losses in share values already
>suffered will eventually have a
>detrimental impact on the jobs and living conditions of many workers.
>
>For over two years new technology stocks have rocketed. Many of the
>fantastically overvalued 'dot.com' new companies have yet to make a
>profit. This was a predominantly speculative bubble, not based upon the
>real economy. Yet its effects helped fuel a boom in the US economy, the
>longest, but one of the weakest, in its history. The US in turn kept
>large sectors of the world economy afloat and even parts of Asia and
>Latin America began to pick up (though with increasing misery for
>millions). However, large parts of the world, including Japan, have
>remained in a deep recession/slump for the last number of years.
>
>Capitalist commentators thought they had overcome the inherent crisis of
>capitalism, on the basis of globalisation and the new technology boom.
>But as the CWI has consistently warned, at some point the stocks and
>shares bubble would burst, reflecting the real underlying weakness
>facing the US economy.
>
>We cannot predict exactly what will happen next to the world economy,
>but all the factors that can lead to a world-wide economic downturn are
>present in the situation.
>
>The markets are extremely volatile. The crash appears to have been
>triggered after news of a jump in US inflation. This led to concerns
>that interest rates (the cost of borrowing) will have to rise to contain
>inflationary pressures. Capitalist commentators desperately plead that
>the present crisis is just a markets "correction". But any number of
>factors, such as a major bank going bust,
>could trigger a major economic recession/slump. The effects of the
>crises of capitalism will be visited upon millions of workers in the US
>and Europe, and even more catastrophically in the 'Third World' and
>so-called 'emerging' economies.
>
> A slump?
>
>A deep recession or even slump may now unfold. If investors take their
>money and run, this can be the start of a huge 'credit crunch'. Many
>people will be affected by a wipe out of stock values - about half of
>all Americans have some stocks and by the end of 1999, 31.7% of all US
>citizens' personal wealth was in the form of shares invested on the
>stock markets.
>
>American households have spent well beyond their means and got heavily
>into debt. US companies have invested huge sums in 'dot.com shares',
>accruing enormous debts. But ultimately there were not the profits from
>the real economy to justify this mad spending spree.
>
>US workers have been squeezed to the full to increase productivity
>rates. Corporate profits have for some time shown signs of reaching
>their limits. US manufacturing profits have reportedly suffered a real
>drop over the last two years. Moreover, the new technology, while for a
>period boosting productivity, also forces prices down and squeezes
>profits.
>
>The plunge in the share values is the beginning of the reversal of the
>so called "virtuous circle" - of rising share values, consumer spending
>and boom. Now we have the prospect of a spending slump, higher costs,
>and a fall in output.
>
>The US could follow Japan, which has been stagnating since its own
>bubble burst ten years ago. Despite many costly attempts to recover the
>economy Japan has remained stagnant. A similar development in the US
>will have devastating consequences for the rest of the world economy,
>which relies so heavily on the health of the US.
>
>It may be possible that capitalism can escape such a dire development
>for a further period. If so, this will only increase the contradictions
>and make a future recession/slump even deeper.
>
>The big bosses and capitalist governments will expect the working class
>to pay the price for the crisis of their rotten system. The last number
>of years have seen over-capacity and even over-production develop in a
>number of sectors, such as the car industry. To attempt to escape from
>this crisis, capitalists will actually destroy the means of production,
>and with it millions of jobs and livelihoods. For example, thousands of
>jobs are under threat at the Rover car plant in the Midlands of England.
>
>Workers need their own independent organisations and programme to resist
>these attacks. Marxists and socialists have organised to fight
>capitalism on a global scale since the First International was
>established by Marx and Engels. In 1889 the first congress of the Second
>International took the historic decision to make the first of May an
>international day of workers' struggles and solidarity. Since then
>millions of workers across the globe have traditionally marched on and
>celebrated May Day.
>
> Commemorate Leon Trotsky
>
>This May Day, and throughout the year 2000, we are also commemorating
>the life and legacy of one of the great Marxists and international
>workers' leaders, Leon Trotsky. It is sixty years since Trotsky was
>murdered in Mexico City on the orders of Stalin. But the Stalinists
>could not kill-off the Old Man's ideas. Today, Trotskyism represents the
>modern expression of genuine Marxism and all the best traditions of the
>international workers' movement.
>
>Trotsky was the co-leader, along with Lenin, of the Russian Revolution
>in 1917, which saw the working class come to power. He led the struggle
>against Stalin and the rising counter-revolutionary bureaucracy in the
>1920s, when Soviet Russia was isolated and economically backward.
>
>In the 1930s, Trotsky kept the flame of genuine Marxism alive while the
>Third International, under the domination of the bureaucratic caste
>ruling in Russia, degenerated along reformist and national lines. In
>Trotsky's opinion, his most important task was to set about creating a
>new workers' international, a 'Fourth International'.
>
>The Committee for a Workers' International (CWI) bases itself on the
>ideas of Marx, Engels, Lenin and Trotsky. The CWI works to establish a
>mass revolutionary socialist international. We stand for an end to
>capitalism and for a socialist society based upon need and not greed. A
>planned economy, democratically run by the working class on an
>international scale, can completely transform the lives of everyone.
>
>A new period has opened up since the collapse of once-mighty Stalinism
>and the bourgeoisification of the social democratic parties. The working
>class has suffered a massive ideological barrage from capitalism and
>setbacks. At the same time, space has opened up for the development of
>genuine socialism on a mass basis. This will not take place in a
>straightforward fashion, given the ideological confusion and setbacks
>suffered by the workers' movement during the 1990s. It will be a
>protracted and complicated process. However, we are already seeing
>important mass struggles on an international scale that mark a
>qualitative step forward.
>
> International Workers' Struggles
>
>May Day 2000 is celebrated as workers' struggles are taking place in
>many parts of the world. The CWI, with sections and supporters in over
>34 countries, actively supports these struggles and in many cases plays
>an important leading role in them.
>
>In Europe, important fight-backs against cuts and job losses are taking
>place. In some countries, such as France, Southern Ireland and
>Australia, workers are taking offensive action, and winning wage
>increases and shorter hours. These workers have faced increased
>exploitation even during years of economic boom and are now demanding
>some gains of their own.
>
>There have also been magnificent movements on broader political issues,
>such as the mass protests against the inclusion of the far right FPO in
>the new Austrian coalition government. CWI comrades in Austria played a
>key role in organising daily protests of thousands, raising the slogan
>'Resistance!', which was taken up by the mass movement.
>
>Fighting the poison of fascism, racism, nationalism and ethnic and
>religious bigotry will increasingly be a key task for the workers'
>movement. European governments are trying to scapegoat asylum seekers
>for the crisis of the system. In Britain, the main political parties and
>the media have whipped up racism. The New Labour government has
>viciously attacked the rights and welfare of refugees, calling them
>"bogus" asylum seekers.
>
>Socialists must expose the lies and propaganda of these governments. A
>socialist programme demands jobs, a living wage and decent housing for
>all. Workers' unity is necessary to resist the fascists and far right
>groups.
>
>Even in the ex-Stalinist states, where workers have faced the most
>dramatic decline in living standards and enormous class confusion,
>heroic struggles are taking place. In recent months, workers at the
>Metalist factory in Kazakhstan won partial gains after months of strike
>action. CWI members played a key role in this dispute, and continue to
>organise workers in Kazakhstan, despite state repression. Likewise,
>today CWI members in the Czech Republic are organising international
>solidarity for miners staging an underground strike in northern Bohemia.
>
>In the under-developed and semi-developed sectors of the world, workers,
>peasants and the landless are conducting magnificent struggles against
>corrupt and often brutal regimes.
>
>In India, power workers and dock workers have taken strike action. In
>Sri Lanka, CWI members have taken a principled stand against the
>government oppression of the Tamil areas, and fight for the unity of
>Sinhalese and Tamil workers in the teeth of vicious reaction.
>
>The tempo of struggle is reaching a revolutionary pitch in a number of
>countries. For example, after decades of theocratic and reactionary
>rule, the youth and working class of Iran are heroically fighting back.
>This marks the first stages of a new Iranian revolution, which will help
>speed up the overthrow of the repressive regimes throughout the Middle
>East.
>
>In impoverished Zimbabwe, the regime of Mugabe is desperately attempting
>to divert the anger of the workers and the landless with a cynical
>policy of 'land seizures'. The developing opposition mass movements in
>Zimbabwe can see the end of Mugabe's rule. However workers and peasants
>need bold socialist policies to fundamentally change their lives. The
>leaders of Zimbabwe's main opposition party came from the leadership of
>the unions, but instead of building an independent movement of workers
>and peasants they have adopted pro-capitalist policies. This sort of
>programme can only disappoint workers, opening up the danger of a
>descent into chaos and civil war.
>
>After some years of relative quiescence, the working class of South
>Africa has decisively taken to the road of struggle again. Last year saw
>general strikes. This April over 100,000 mainly public sector workers
>marched against the neo-liberal policies of the ANC government.
>
> Revolutionary movements in Latin America
>
>In Latin America significant struggles are breaking out at present, some
>of which have already reached revolutionary proportions.Since the
>beginning of the year uprisings have occurred in Bolivia and Ecuador. In
>Venezuela the populist regime of Chavez is on a collision course with US
>imperialism. In Colombia, the regime is desperately fighting to contain
>
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