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On 8/8/18 9:27 PM, DW via Marxism wrote:
Leaving that aside is if it's applied to Nicaragua, this means...what
exactly? Not seizing power? Limiting, even against the wishes of the rural
masses and urban workers further nationalizations? What would be the point
then of the FSLN coming to power if only to topple the hated dictatorship?
In fact, the self-limitations imposed by the FSLN worked out well, huh?
Plus, Louis, you make it out to seem as if nothing else was going on the
region...like El Salvador, Guatemala, etc. I am not arguing had, as A.
Sandino suggested..."only the workers and peasants can go all the way"
...that the results wouldn't of been any different. Though we never would
know had they, the FSLN, lead the masses to just that, that an even deeper
radicalization would not have shifted the entirety of Central America
working masses to consider socialist solutions. Revolutions happen when
it's least expected, afterall.

David's revolutionary bombast is not worth responding to except as a cue to post another excerpt from my 15 year old article:

In a very real sense, the gains of the Nicaraguan revolution were partially responsible for their undoing. The Agrarian Reform, in particular, caused traditional class relations in the countryside to fracture. Agricultural workers and poor campesinos no longer had to sell their labor at the cheapest price to the wealthy landowner. This, in turn, led to lower production of agricultural commodities.

George Vickers pointed these contradictions out in an article in the June 1990 "NACLA Report on the Americas" entitled "A Spider's Web." He noted that the Agrarian Reform provided a reduction in rents, greater access to credit and improved prices for basic grains. This meant that small peasants had no economic pressure on them to do the backbreaking work of harvesting export crops on large farms. Even when wages increased on these large farms, the campesino avoided picking cotton on the large farms. Who could blame them?

This meant that the 1980-1981 cotton harvest, which usually lasts from December through March, remained uncompleted until May. Each of the three subsequent coffee and cotton harvests suffered as well. The labor shortage became even more acute as the Contra war stepped up and rural workers were drafted into the Sandinista army.

In addition, Nicaragua faced the same type of contradictions between town and countryside that existed in the Soviet Union in the 1920s. It was difficult to keep both urban proletariat and peasant satisfied due to conflicting class interests of each sector. While both classes fought to overthrow Czarism or Somoza, their interests tended to diverge after the revolution stabilized.

In 1985, the Agrarian Reform distributed 235,000 acres of land to the peasantry. This represented about 75% of all the land distributed to peasants since 1980. The purpose of this land distribution was twofold. It served to undercut the appeal of the Contras to some campesinos, since land hunger would no longer act as an irritant against the government in Managua. Daniel Ortega would simultaneously give a peasant title to the land and a rifle to defend it in ceremonies in the countryside all through 1985.

The second purpose of this land grant was to guarantee ample food delivery into the cities. This would allow the government to end food subsidies. The urban population had enjoyed a minimum of basic foodstuffs at highly subsidized prices. These price subsidies fueled budget deficits and, consequently, caused inflation.

The hope of the Sandinistas was that increases from new farm production from the countryside would compensate for the ending of food subsidies. However, what did occur was a sharp convergence between the price of subsidized food and food for sale in the retail markets. A pound of beans at the subsidized price was 300 cordobas, while retail market prices reached 8,000 cordobas. The subsidized breadbasket became a fiction while marketplace food became the harsh reality. Managua housewives became outraged as hunger and malnutrition among the poorest city-dwellers grew rapidly. The underlying cause of the high price of food was the shortage of supply. Contra attacks on food- producers, large and small exacerbated the shortage.

What was the solution to Nicaraguan hunger? Was the solution to shift to the left and attack the rural bourgeoisie? Should the Sandinistas have expropriated the cattle ranchers, cotton farmers and coffee plantations and turned the land into small farms for bean and corn production? This would have meant that foreign exchange would no longer be available for purchase of imported manufactured goods, including medicine, machinery and guns. Nicaraguan coffee is marketable overseas, while beans are not.

The simple reality was that the Sandinistas could not find a solution to Nicaragua's economic problems within Nicaragua itself. Facing a US trade embargo, it grew to depend heavily on outside assistance. The story of outside assistance was not one to bolster revolutionary morale. From July 1979 through December 1987, the nation received almost $6 billion in credits and outright donations. The US pressured other Western nations to cut back aid, but Soviet aid increased steadily from 1979 to 1987 until it amounted to $3.3 billion. Soviet aid was at a high point in 1985 when it gave Nicaragua $1 billion in assistance, but it dropped by 60% from 1985 to 1986, and declined further in 1987.

Foreign assistance could simply not overcome the ravages of inflation within the country. In 1988, the crisis reached its deepest intensity. The Sandinistas introduced an IMF-styled austerity program in February 1988 and repeated with more cruelty in June. It hit the working- class and peasantry hardest. The bourgeoisie did not feel the impact of these anti-inflationary measures. The government gave them preferential treatment in the hope that Nicaraguan agribusiness would step up production. The austerity program, as harsh as it was, did not work. In December of that year, inflation was up to 33,000%, exacerbated by the effects of a powerful Hurricane. The end result was a bankrupt "informal" sector of the economy and widespread resentment toward the government. Meanwhile, the pampered bourgeoisie continued its attack on the "Communist" Sandinistas, no matter how inappropriate this epithet had become.


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