Class Struggle 113 Winter 2015

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Class Struggle 113 Winter 2015 1

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Class Struggle is the quarterly paper of the Communist Workers Group of Aotearoa/New Zealand

Transcript of Class Struggle 113 Winter 2015

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    Briefs Peters wins in Northland Most of the left called for a vote for Peters as a vote against

    Key. A Peters victory they said could see a Labour/NZ First Government in 2017. They think this would be a lesser evil than National/Act/United Future/Maori Party coalition

    (NACTS) in 2017? We cant see much difference really. This would be the rightwing of Labour joining forces with NZ First

    to take the conservative middle ground from the NACTS at the

    expense of the left and the interests of most NZ workers.

    Labours stunt of deferring to Peters was a clear admission that the rightwing in Labour has won. First it had to backstab

    Cunliffe. Then it had to conspire with Peters and the NACTS to smash Internet/MANA and isolate the Greens in the General

    Election. Labour used MMP not to unite the left but smash it.

    Next was the abuse of MMP to effectively divert labour votes

    to Peters in the Northland buy-election. A blatant cynical disregard for building Labour support on the left in favour of

    building it in the centre.

    The role of Stuart Nash illustrates this. Here is an obvious

    rightwing demagogic Labour leader-in-waiting being pushed

    by people like Bomber as Labours salvation. A Labour/NZ First Government in 2017 would be a defeat for workers, not a

    lesser evil. Thats because they will be caught up in a right wing populism that throws us back to a reactionary national

    chauvinism that attacks the underclass and migrants rather than our neo-colonial masters; a return to Muldoonism with a

    nasty patriotic, anti-Treaty, racist backlash. (Winston Peters

    was in the National Party with Muldoon).

    Cuppa tea party crowdfunding with Shame Jones anyone?

    A populist centrist Labour/NZ First Government would be

    a dead end for workers because it can only appeal to the

    red-neck middle class and lumpen workers by blaming

    militant workers, beneficiaries and immigrants for NZs economic woes which are going to get much worse.

    We can do much better than that. The left inside Labour needs

    to read its history. Read Karl Marx on British capitalism and

    settler colonialism would be a good start, followed by the

    history of the betrayals of the Labour Party. Then it needs to

    break away from rightwing populism and join forces with Mana, the left of Internet and the left from the Greens to form a

    real mass Workers Party. Against the return to a reactionary

    nationalism, we need to ally ourselves with the masses

    struggling around the world against the common class enemy

    of the 99% the giant banks and monopolies of the richest 1%.

    Why workers must read Marx Chris Trotter, friend of Labour, continues his campaign to

    clean up capitalism for working class consumption. He cites

    Karl Marx in the Communist Manifesto that the capitalist state

    is the committee for managing the affairs of the bourgeoisie. The NACTs he claims are not ruling on behalf of ALL

    capitalists, only a small bunch of parasites. Does this mean that

    the NACTs should read Marx and obey his dictates and rule for

    the whole capitalist class or maybe thats Labours job.

    Its misleading to quote a sentence from Marx writing in 1848 to critique Keys regime for falling short of managing capitalism efficiently for the whole ruling class. Since Marxs time capitalism has undergone some major changes. The ruling

    class had concentrated wealth and power into a small fraction

    of the capitalist class. The less efficient and small capitalists

    get swallowed up. The rest are used as subcontractors.

    So the state managing the interests of the international

    capitalist class today acts according to its position in the global

    pecking order. NZ is a tiny semi-colony that never had a war of

    independence. It is somewhere in the middle of the pecking

    order as a rich dependency because of its favoured history as a

    British farm.

    During the times of the first Labour Government, NZ was able to secure a measure of self-government and economic

    protection to allow domestic capitalism to establish itself.

    Labour governed in the interests of NZ domestic

    manufacturers, but the other side of the deal was to allow the

    City to keep control of banking and rake out its profits. Bruce

    Jesson certainly recognised who had the better of the bargain

    since he saw NZ as still a neo-colony of Britain.

    Today, 50 years later, with the end of the post-war boom and

    the onset of neoliberal globalisation, NZs ruling class no longer tries to serve two masters. Bill Sutch signalled this with

    his 1970 book Takeover NZ. NZ was about to become no more

    than a footnote in the accounts of the multinationals. The NZ economy was deregulated, opened up, and recolonised by

    international finance capital. NZ domestic capital was gutted,

    and important productive sectors were privatised and under

    foreign control.

    The role of the Key regime is that of comprador, the agent of

    US, UK and Chinese capital, facilitating the complete takeover

    of the economy. NZ has returned to its colonial role of provider

    of raw materials, with its No 8 wire ICT innovation bought out

    by international monopolies. Like all compradors, the NZ

    ruling class gets paid off with part of the proceeds, usually for

    its conspicuous consumption, not for domestic production.

    So the famous quote from the 1848 Communist Manifesto

    about the state being the organising committee of the ruling class needs some historical elaboration. The NACT regime today does represent the international ruling class, both the

    giant monopolies and banks, and their national agents,

    collaborating in the job of organising the world economy in

    which various nations fill their assigned roles in the

    international division of labour of accumulating profits for the

    richest 1%.The capitalists dont need to read Karl Marx. It has never done them any good. The workers need to read Karl

    Marx and find out how to take over and run the world economy

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    sustainably and equitably. The new ruling class of the 99% will

    certainly hold the state to its task of managing its common affairs.

    John Key the Money Man A lot of people on the left in NZ are mystified by the

    popularity of John Key. He has been caught out lying and

    cheating, hiding under several hats and generally faking it. The explanation lies in his personal amorality, hypocrisy, and

    boorish behaviour. These are useful personality traits for a

    money trader, or more accurately the Money Man as

    personification of money.

    Key represents nothing but money and like money he is all

    show and no substance. To discover why a national leader is

    first and foremost a money man we have to trace the origins of

    money in capitalist society.

    Money originates as a means of exchange and measure of value

    of commodities. Money may have value itself as a precious

    metal like gold because of the labour congealed in it, but today

    money itself is valueless and more importantly, worthless

    unless it can be exchanged for a commodity of value.

    Marx called the commodity a mysterious thing because it is not what it appears to be. The labour required to make value is

    alienated and appears instead as a property of the commodity

    itself. Money takes this upsidedownness and flaunts it. It masquerades as the source, repository and religion of value-in-

    itself.

    Its easy to see why famous prophets like Proudhon and Te Whiti saw money rather than capitalist exploitation as the root

    of all evil. What they opposed was the upside down reality of

    capitalism which defined people by money. Of course the

    world has to be turned right way up by overthrowing not only

    money and its political personification in Key, but the system

    of labour exploitation that is the beginning and end of it all.

    The world capitalist economy today is in big trouble because it

    cannot produce commodities profitably. The result is that

    money has become detached from the production of value and

    becomes what Marx called fictitious capital.

    This is the money that Key represents, the fictional, worthless, valueless character of money as a fake equivalent of value.

    Because it cannot be exchanged for the real value produced by

    workers, it pretends that by speculating in land and existing

    commodity wealth it can artificially create value out of

    panicked shoppers. But this is not value inflation. It is value

    deflation by price inflation that will burst sooner or later.

    But to keep the pretence going that bankers pyramid schemes

    create value, the banking system needs a Money Man as

    political leader to push speculation in all existing values by

    printing money. He also tries to commodify everything from

    state owned assets to social services as private property so that

    the market can drive the price speculation that keeps pumping

    up the fictitious economy. Capitalism like climate is headed for collapse. Are you ready? Boom Bang!

    UK: Death of Labour overdue UK Labours defeat marks the end of social democracy in Europe. The Great Recession is still with us as global stagnation and the threat of a Great Depression. Social

    Democracy founded on state redistribution cannot function in

    recessions and depressions. The Fourth Labour Government in

    NZ proved this rule by demonstrating that Labour governments

    are the servants of capital before the servants of labour.

    UK Labour followed a decade later with the Blairite years. The

    Brown/Milliband Labour opposition did not break from Blair.

    The result was that it failed to convince workers in Scotland

    and elsewhere that it stood for the working class. It was

    punished by Scots workers who jumped to the Scottish

    National Party (SNP) and dumped Labour.

    The underlying message of the victory of the SNP is not

    nationalism, but classism. Workers in Scotland found a vehicle

    in the SNP already in existence as the alternative to Scottish

    Labour that had been part of the leadership of

    Blairite/Brownite Labour. This allowed them to vote for the

    SNP with an anti-austerity message.

    In England and Wales, the chauvinist anti-immigrant UK

    Independent Party took votes from Labour because Labour had

    no policy to defend workers from wages undermined by

    unemployment. Because Miliband could not deal with this

    problem by backing unions and creating jobs, then workers

    defaulted to the rightwing politics of blaming immigrants.

    So under Labour the replacement of class politics with

    populism fails to provide answers for workers and leads to

    destructive right splits. Scottish workers were driven to call for

    Scotlands independence as a means of fighting austerity. English and Welsh workers were driven into the arms of UKIP

    to defend their jobs from immigrants. That leads to the

    breakup not so much of Britain where finance capital rules, but

    of the British working class.

    The end of British Labour is part of the death of European

    Social Democracy and its replacement by national populist

    parties which are painted by the anti-capitalist left as progressive. Thus by openly subordinating the workers class interests to the middle class anti-capitalist workers are pulled

    back into cross-class populist parties as we have seen in

    Britain, Spain and Greece. That is why the SNP, Podemos and

    Syriza which try to reconcile antagonistic classes in national

    populist parties, even forming governments with open

    bourgeois parties, are to the right of Social Democracy. They

    are popular fronts that tie workers to reactionary bourgeois

    parliaments and open them to fascist attacks.

    The solution is to fight for the unity of all British and EU

    workers against all the pro-austerity parties in the EU, joining

    forces with the anti-austerity struggles from Greece to Spain to form new mass workers parties. These parties would stand in

    elections only to expose and defeat the misleaders who tell

    workers they can vote for socialism, to win over reformist

    workers to a socialist program for workers councils and

    militias and a workers government capable of taking power and

    planning production for need and not profit!

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    May Day: Workers of the World Unite! Smash Capitalist Imperialism and stop its drive to World War 3!

    The world is in the throes of a crisis of overproduction of capital caused by the falling rate of profit. It is exacerbated by the rise of China and Russia as rival imperialist powers to the declining US led bloc. We regard the crisis as proof of the self-destruction of capitalism in its death throes. It can only get worse as it destroys masses of accumulated capital and drives down the costs of labor which in past crises has always led to imperialist wars. Today the severity of the crisis is compounded by the fast approaching capitalist-fuelled climate catastrophe and the end of the human species. This crisis can only end in the destruction of a Third World War and climate catastrophe, or as the World Socialist Revolution. To stop the drive to imperialist war, ecological collapse and the end of humanity, imperialism must die!

    Imperialisms war on workers For imperialism to survive it must make the masses pay for its

    crisis. This means attacking their livelihood and their lives!

    This is shown by the huge downward pressure on the masses

    living standards and attacks on their rights, their historic gains,

    and their very existence. It

    takes many forms:

    (a) An expanding reserve army of unemployed from

    Asia, Africa and Latin

    America where most of the

    working population is in the

    black economy. Everywhere

    casualising contracts such as

    zero hours are targeting

    especially black, female and

    young low-paid or no-paid

    workers. In Europe and the

    US today up to half of youth are unemployed.

    (b) Attacks on indigenous peoples struggles to survive and defend their natural resources from outright theft and plunder

    as we see from the Amazon to Australia, from the Zimbabwe

    diamond mines to the West Papuan independence struggle and

    the US First Nation peoples stands against fracking and capitalist climate catastrophe.

    (c) Rising flows of migrant workers denied basic rights to life

    as in the case of African migrants deported by the ANC from

    South Africa, dying by the thousands trying to reach Europe,

    and trapped in concentration camps in Australia, Greece and

    France. And the millions of political refugees fleeing invasions and wars.

    (d) Attacks on trade unions to break them so that workers are

    super-exploited and killed in unsafe conditions as in

    Bangladesh and Argentina; attacks by the bureaucratic thugs of

    the state, killer cops on the union ranks everywhere such as

    miners of Las Heras, Argentina, and Bolivia, and the massacre

    at Marikana.

    (e) Vicious austerity measures imposed everywhere that

    destroy state welfare support for the working class in health,

    education, housing and social benefits driving workers into

    poverty ridden slums, early death or suicide as in the UK and Greece, driving down wages and restoring 19th century labour

    conditions.

    (f) Rising fascist movements among petty bourgeois and

    lumpen elements that ferment divisions in the working class

    over jobs, housing, etc., that lead to ethnic, religious,

    xenophobic attacks in Europe and elsewhere which prepare the masses as cannon fodder countless proxy wars from South

    Sudan to Ukraine.

    (g) Imperialist invasions and occupations leading to proxy wars

    that pit workers of one or other nation, nationality, ethnicity or

    religion, and gender to fight one

    another. The proxy wars are

    most extreme in Africa (South

    Sudan) MENA (Syria, Iraq,

    Yemen) and Eurasia (Ukraine).

    They prepare the road to the

    Third World War.

    By driving the proletariat into

    poverty and dividing it against

    itself as hostile factions, and in

    numerous wars, the imperialists

    and their national bourgeois

    agents desperately force down

    the costs of labour in the hope of

    restoring their profits. But so far they have not succeeded. The

    resistance is kicking back everywhere.

    The proletariat fights to survive

    For the international proletariat, the way out of the crisis is to

    resist all the imperialist attacks on every front in every country

    and build a revolutionary communist international to

    overthrow the rotten capitalist imperialist system. There is no

    lack of will and capacity to fightback by the worlds workers. Every day makes thousands martyrs of our class.

    We can see the spontaneous resistance taking many forms in

    the struggle for jobs, social and economic rights and the defence of basic human rights, from opposition to cop killers

    from Ferguson to Baltimore, from the fascists in the Donbas,

    from the dictator al Assad and Islamic State in Aleppo, from

    ANC police thugs in Marikana, and from popular front

    betrayals in Brazil, South Africa and Greece.

    Yet, inevitably whether this resistance is in the form of the fight against austerity, casualisation, for the rights of

    indigenous, blacks, women, of migrant workers, for the rights

    of unions, and opposition to proxy wars, invasions and

    occupations spontaneous resistance is everywhere trapped by the false friends of the working class; the labour bureaucracy in the unions, the reformist left parties, and most treacherously

    the self-proclaimed communists and fake Trotskyists who

    betray the proletariat by covering for the open agents of the

    bourgeoisie in the ranks of the working class itself.

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    To mobilise and organise a united world proletariat, first the

    working class must be freed from its treacherous bureaucratic

    misleaders who suck militant workers

    into fatal political alliances with the bourgeoisie under the banner of the

    popular front (from the ANC in South

    Africa, the PT in Brazil, the PSUV in

    Venezuela, to Syriza in Greece) that

    ties their hands as the crisis deepens

    and the fascist gangs and

    paramilitaries are unleashed by the

    bosses to try to smash the

    international revolutionary proletariat

    and stop it carrying out its historic task of overthrowing the capitalist

    system.

    For a revolutionary program and party!

    To bring an end to the capitalist imperialist crisis which now

    threatens the destruction of humanity and nature we need a

    socialist revolution. That needs a revolutionary transitional

    program of demands that are raised to meet the immediate

    urgent needs of workers for jobs, housing, education, health, etc., fought for by workers, for the workers

    These fights bring workers up against the power of the bosses

    state and its repressive forces, that denies migrants rights, kills

    militant workers, bans unions, jails or kills protesters, and

    incites workers to kill one another in pogroms and wars. This

    proves the need for workers to build their own class power

    based upon their organs independent of the bureaucracy and

    bourgeoisie - councils, militias, and most of all an international

    Leninist/Trotskyist party that provides the leadership to the

    revolutionary proletariat.

    The revolutionary party has to be everywhere that workers are resisting the

    crisis, challenging all the bosses agents at every point, and helping to organise

    workers into their own organs of workers

    power and breaking out of the popular

    front with the bourgeoisie.

    Our aim must be to name, expose and

    kick all these class traitors out of the

    class and to create a new leadership of

    class fighters who are won to the

    program of permanent revolution,

    capable of turning strike action into political general strikes, and then into victorious insurrections to overthrow the

    capitalist state and impose a Government of the workers and

    all the oppressed!

    Workers of the World Unite! For a new World Party of Revolution!

    For Workers Councils and Militias! For Workers Council Governments!

    For a World Socialist Revolution and a Communist Future!

    Liaison Committee of Communists May 1st 2015

    ANZACs Gallipoling to the Third World War Gallipoli did not mark NZs coming of age. Colonies fight wars of independence from their imperialist motherlands, they don't go and fight wars against other countries because the motherland says GO. It was Maori who fought their war of independence against the motherland and its settlers, who in World War I resisted the draft, while those who fought on the side of the motherland were the first to enlist to prove they were equal to the master race. We need to deflate this bullshit kiwi nationalism born fighting imperialist war on the wrong side at its rotten roots before it carries us into the Third World War.

    The only war that matters is Class War

    It seems to us that most people critical of the ANZAC

    celebrations are still throwing around analyses of World War I

    that are premised on the assumption that wars are between

    nations, rather than between classes. Nations are the vehicles

    for rival bourgeoisies to struggle for supremacy using their

    workers as cannon fodder. The whole point being that the

    victorious powers then make use of their expanded empires and

    put the surviving proletariat to work making more profits.

    But the Great War opened up the prospect of such inter-imperialist wars turning into open class wars. This can be seen

    in a number of ways. Resistance to the draft, which was often

    punished by death; the famous temporary truces between the

    ranks in no mans land that were also met with severe punishment; mutinies, best known that in Germany in

    November, 1918; and ultimately, revolutions. The Bolshevik

    Revolution was mainly the response to the war by workers and

    poor peasants in Russia. The February 1917 revolution was

    kicked off by women textile workers facing starvation. It was

    followed by the October Revolution when the majorities in the

    soviets of workers, troops and poor peasants stood for the

    overthrow of the capitalist government.

    The revolution in Germany began with the mutinies of troops

    in 1918 and led to the formation of workers and soldiers councils and militias. A bloody civil war ensured in which the

    Social Democratic party headed a new Republic unleashing the

    military and fascist paramilitaries against the revolutionary

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    Communists. Reacting to the new threat of the Russian

    revolution spreading throughout Europe the hostile warring

    states joined forces to invade Soviet Russia only to be defeated

    by the Red Army.

    As we know the war resistance that opened the way for a

    Europe-wide (and thus a world-wide) revolution was contained

    in Russia, defeated in Germany, and the coup d grace was the rise of fascism in Italy in 1919 which then spread to Spain and

    Germany by the 1930s.

    So the Great War resulted in a repartition of the capitalist

    world but which included the rise of a new threat to the

    existence of capitalism itself, the Soviet alternative to

    capitalism. This led inevitably to the Second World War in the

    attempt to isolate and destroy the Soviet bloc. Again while the

    Allies fought the Axis their ultimate target was the Soviet

    Union. Again they failed in that objective as the Soviet Second World spread to China and

    Indochina and became a

    beacon to revolutionaries in

    the colonial world.

    The end of the Cold War and

    restoration of capitalism in

    Russia, China, Indo-China and

    Cuba, has not solved the

    problems for imperialism.

    Instead of being able to grab

    back what was lost to them between 1917 and 1990,

    Russia and China have come

    back from the dead as

    imperialist rivals.

    So the defeat of the soviet world in the 1990s is not the victory

    of the global capitalist class over the worlds workers. Rather it marks the opening up of a new struggle between the old

    declining US bloc and the rising Russia-China bloc for global

    supremacy. And that struggle to the death will surely create the

    conditions for new revolutions. We are heading towards a new

    world war between these two blocs and once again the workers

    are being prepared to fight one another in the interests of their respective imperialist ruling classes.

    Inevitably like the previous Great War and the Second

    World War, a Third World War will be a class war. The

    working class can learn from history and refuse to fight this

    war on behalf of their imperialist rulers, and instead turn it

    into a global class war against the imperialist ruling classes.

    Resisting the Great Wrong War

    The Great Wrong War, which was the title of the book by

    Stevan Eldred Grigg, was caused by the rivalry of the great

    powers of the time to re-divide Europe and the overseas

    colonies. Workers from all these countries were sent to war to

    kill one another to increase the power and wealth of the

    victorious powers. The end of that war drove the defeated Germany into deep depression and prepared the ground for the

    rise of fascism and the Second Wrong War.

    The response by communists who did not get sucked into this

    jingoism was to refuse to fight and to mobilise against their own ruling class as the enemy at home. Lenins famous slogan was to turn imperialist war into civil war. This means workers in every country refusing to shoot one another and

    instead turning their guns on their own ruling classes. While

    some of the ANZAC troops mutinied in France but against the

    conditions they faced rather than the war itself. There was

    however, strong opposition to the war at home among unions

    and some Maori.

    For all the enthusiast empire sabre rattling in NZ there was also

    a strong resistance to the war from some Waikato Maori and

    the labour movement.

    The Waikato leader, Te Puea Herangi, supported those men who resisted conscription by gathering them up at Te Paina, a

    p she had rebuilt at Mangatwhiri. Her stance attracted a lot of hostility from other Mori and Pkeh who accused her of being a German sympathiser. Those Waikato men who refused

    to report for training when balloted in 1918 were arrested and

    taken to Narrow Neck training camp at Auckland. Any who

    refused to wear the army uniform were subjected to severe

    military punishments, including dietary punishments (being fed only bread and water) and

    being supplied with minimal

    bedding. Only a handful of the

    Tainui conscripts were ever put

    into uniform and none were

    sent overseas. By 1919 only 74

    Mori conscripts had gone to camp out of a total of 552 men

    called. The imposition of

    conscription on the Waikato

    people had long-lasting effects, and the breach it caused was

    probably only restored with the

    Tainui Treaty settlement in

    1995.

    The current celebration of

    nationhood born 100 years ago by the mass slaughter of workers for profits should be resisted today as a blatant

    rallying of workers to prepare to fight a Third Imperialist

    war on the side of the US/NATO bloc against the rival

    power of China and Russia. The workers answer to

    imperialist wars is to take up arms but refuse to fight one

    another for profits and when repressed by the state to turn

    their guns on their own ruling classes.

    Stop a Third World War!

    There is really only one political response to celebrating

    imperialist wars and that is refusing to fight in them unless you

    are defending an oppressed country from imperialist invasion.

    Even then, the working people have an interest in uniting with

    workers in other countries and not following their ruling

    classes which are the agents for imperialism.NZ has a great

    record of resistance whose lessons should be learned today in the face of mounting US warmongering aimed at weakening

    and defeating the Russia-China bloc. On ANZAC day we

    should celebrate the Waikato Maori, especially Te Puea who

    organised resistance to the draft targeting Waikato Maori. We

    should also celebrate the opposition and resistance to the war

    by the radical elements of the labour movement which in 1913

    had a General Strike put down by the army under the command

    of a British Governor General.

    So there is nothing stopping the working people of NZ from

    learning the real lessons of the ANZACS and refusing to

    participate in the hype around current wars that are softening us up to march off again to another imperialist war.

    Turn Imperialist Wars into Civil Wars!

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    MENA: Yemen and the Arab Revolution Battle lines in the Middle East continue to be drawn between the US bloc and the rising China/Russia bloc over control of the hydrocarbon resources of the region. This has not become an open proxy war since the China, Russia bloc do not want to be drawn into a fight over oil in MENA where the stakes are so high. At stake is the fate of Iran. Iran is in the camp of Russia and China. It has the 4th largest reserves of oil and 2nd largest reserves of gas in the world. Its immediate interests are to get the sanctions lifted and its own oil flowing. It has a stake in Iraq where the Shiite led regime and militias are driving back the IS forces in the north. It is the main force that is keeping al Assad in power in Syria.

    In Yemen the latest front in a

    series of connected fronts has opened as the US bloc

    led on the ground by Saudi

    Arabia and a coalition of the

    US lackey states, lines up

    against the popular Houthi

    rebellion that has overthrown

    the US sponsored dictator

    who has flown the country. While the US bloc claims

    that the Houthi are armed by

    Iran, Iran denies this though

    the Houthi have links to

    Hezbollah another Iran

    proxy. Iran as part of the

    China/Russia bloc is clearly

    engaged in a struggle with

    the US bloc for control of

    MENA.

    Nevertheless we advocate independent working class action

    in defence of the Houthi uprising without any political

    support to the bourgeois leadership or its proxy role aligned

    to the Russia/China imperialist bloc.

    The Arab Revolution threatens both blocs

    While the inter-imperialist rivalry underlies these wars in

    MENA, the real threat to both blocs is the unfinished Arab Revolution. In 2012 a year into the Arab Revolution re-opened

    in MENA we wrote a balance sheet in which the success of the

    revolution was clearly in the armed masses fighting against

    dictatorships. To the extent that uprisings were steered into

    parliamentary solutions as in Tunisia and Egypt the revolutions were halted. Where these rebellions met

    overwhelming armed repression as in Bahrain they were

    aborted. Where they met armed repression but survived to arm

    a popular resistance movement as in Libya and Syria, the

    revolutions are still alive.

    Most important, the Arab Revolution had to be joined up at Palestine from East, West, North and South. If the Syrian

    revolution did not join up militarily with the Palestinian

    struggle it would be doomed. If the Libyan and Egyptian

    Revolutions remained separated they would not succeed. Thus

    it was necessary for the revolution to remove the imperialist

    borders imposed by Sykes Picot in 1919 and turn the

    Palestinian struggle into a Pan Arab Permanent Revolution.

    In those countries where the revolution succumbed to the siren

    songs of bourgeois parliamentary democracy, they failed to

    arm themselves and win over the ranks of the army. In Egypt

    the SCAF (Supreme

    Command of the Armed

    Forces) sacked the Muslim

    Brotherhood regime of

    Morsi and continued its

    historic role since Nasser as

    the military Bonapartist

    institution that is the

    backbone of the

    authoritarian state defending capitalist rule in

    Egypt, not only from the

    external enemy, but from

    the internal enemy, the

    populist Muslim

    Brotherhood and the

    Egyptian masses.

    The most important task of

    this military regime is to isolate the Egyptian masses from the

    rest of the Arab states. One of the first acts of Al Sisi was to

    close the border to Gaza and to the uniting of Egyptian and

    Palestine revolutions. Today Al Sisi joins the Yankee coalition bombing IS in Libya and invading Yemen with Saudi planes

    and tanks to smash the rebellion as they did in Bahrain.

    In those countries where the resistance armed itself, civil wars

    opened up against dictatorships like al Assad in Syria, al

    Maliki in Iraq, and the NTC in Libya. Yet in none of these

    countries has the armed resistance united across borders to join

    the Palestinian struggle. But neither have they been disarmed

    and destroyed. Every attempt has been made by both US and

    Russia/China blocs to isolate and destroy the popular resistance

    creating power vacuums in which other forces especially

    Islamic jihadist were able to fill the gap. In Iraq this has meant that the non-sectarian resistance to al Maliki has been overrun

    by the Sunni IS in the North while the Shiite militia from the

    South have become the dominant force in pushing the IS back.

    Similarly, in Syria the non-sectarian militias have become the

    target of not only al Assad but of the IS and its jihadist allies

    such as al Nusra. The IS has now moved against the Palestinian

    revolution attempting to take over the refugee camp at

    Yarmouk on the outskirts of Damascus.

    Sectarian or imperialist wars?

    So while the armed revolution advanced from 2011 to 2013, it

    has been overtaken by counter-revolutionary forces who may

    want to carve out Islamic states in much the same way that

    Israel carved out its Zionist state. These are the open enemies

    of the Arab Revolution. The result is that in both Syria and Iraq

    the dictatorships have aligned themselves with the counter-

    revolutionary Shiite forces against the Sunni masses in an

  • Class Struggle 113 Winter 2015

    8

    attempt to turn what are potentially anti-imperialist and

    revolutionary wars into reactionary sectarian wars. It is the

    stalemate between these dictatorships and their Sunni

    opposition that has created the vacuum that the Islamic State has moved to fill. Yet the fundamental fault lines of the wars in

    MENA are not sectarian but imperialist.

    Yemen demonstrates this exactly. Look who is driving the

    ideology of the anti-Shia, anti-Iran realpolitik; Israel and

    Saudia Arabia with the US providing the intelligence and

    supplying the weapons.

    Israel, the Zionist

    reactionary state has fought

    wars against Hamas and

    Hezbollah. Saudi Arabia

    the home of the Wahabi

    Sunni sect and al Qaeda are both client states of the US

    bloc armed by the US to the

    teeth, and backed up by

    not-so-secret Israel nuclear

    weapons! But who joins in

    this god squad of

    mercenary states after a

    bloody purge of the

    leadership of the Muslim

    Brotherhood, Al Sisi and

    his secular Egyptian army that isolates Gaza on behalf

    of Israel. Turkey even

    chimes in from the sidelines fearful of a vacuum being filled on

    its borders by a Kurd nation that threatens its own territory.

    Look to see who is backing the opposition. The Iraqi regime

    forces trained by the US are incapable of stopping the Islamic

    State. In Iraq, as in Syria, it is the Shia militia led by Iranian

    generals and backed by the Iranian Revolutionary Guards that

    are putting up the only opposition to the revolutionary

    democratic militias and the Islamic State. Iran is part of a

    military bloc with Russia and China. Russia has recently

    committed to supply S-300 missiles which are a defence against aircraft if not an Israel nuclear missile attack. Of

    course, both blocs are in the final analysis attempting to

    maintain stability of the whole of MENA against the revival of

    revolutionary uprisings that become linked into one united

    struggle.

    For a United Front with Palestine!

    There is only one force that can solve the crisis of war ridden

    MENA in the interests of the popular masses, those masses

    themselves. Revolutionaries recognise that the Arab masses are

    fighting a revolution against both imperialism and its national

    dictators, bought and paid for by imperialism. We give no

    support to fake anti-imperialist bourgeois war lords and jihadist

    mullahs who claim religious rights to steal the land that has

    been liberated by the masses struggles. If not the creations of one or other imperialist bloc, they are competing to create new

    bourgeois mini-states that do deals with one or both blocs for

    the franchise to pump oil or gas. Against the counter-revolution in Syria, Iraq and Libya, the popular armed militias have to

    fight the dictators and their imperialist backers, and the

    jihadists who hijack the revolutions to create caliphates. This

    can only succeed as a common front with the Palestinians who

    have carried the burden of the Arab Revolution for generations.

    The key is Egypt the most powerful state in MENA that is the

    pivot between the Middle East and North Africa.

    As we argued from the start of the Arab Spring in Egypt the workers program against a military Bonapartism of Mubarak

    (and now Al Sisi) is clear. Re-activate the unfinished

    democratic revolution as the Permanent Revolution. This means building a Marxist party that can raise a transitional

    program to mobilise the working class to build workers

    councils and militias to

    fight for the immediate

    demands of workers and

    poor peasants through

    strike action and a

    political general strike.

    Such a program will challenge the Islamic

    fundamentalism of the

    Muslim Brotherhood

    youth who have come to

    the fore with the arrest of

    the old Morsi generation

    and who are no longer

    following the road of

    parliamentary reform.

    Drawing the masses

    behind such a program will force the hand of the

    SCAF to resort to Al Assad type civil war. This will split the

    ranks from the SCAF officer corps and create the conditions

    for an armed insurrection.

    The revival of the revolution in Egypt will draw the US and

    Israel in to defend the Al Sisi dictatorship at all costs. The

    loss of Egypt would allow the revolution in North Africa to

    link up to the Palestinian and Syrian revolutions. It would

    signal that the non-sectarian Arab forces can form a bloc

    from Libya to Iraq and a potential alliance with the Kurds.

    The only solution is the Permanent Revolution where the

    proletariat, small traders and poor peasants led by a mass proletarian party overthrow the bourgeois state and build a

    workers state. The legacy of the reactionary Stalinist parties that entered popular fronts with the secular Baathists and

    Nasserites has to be replaced by the program of Permanent

    Revolution of a new Leninist Trotskyist International.

    The Permanent Revolution in MENA requires a transitional

    program that begins with the struggle for basic democratic

    rights of assembly and speech. But nowhere in MENA are such

    rights possible without workers taking power. The semi-

    colonial state is the agent of imperialism in extreme crisis.

    Imperialism can only survive by using these client regimes to super-exploit and oppress the masses. There can be no reform

    of the existing state and society. A revolutionary insurrection is

    necessary based on workers, farmers, and soldiers councils

    defended by popular militias from Tunisia to Yemen.

    For a Revolutionary Marxist party!

    For the Permanent Revolution!

    For a Union of Socialist Republics of MENA!

  • Class Struggle 113 Winter 2015

    9

    Defend Immigrants: One Africa for All Africans! Who is Behind the Race Riots?

    These race riots have been building since the great recession of

    2008. They are symptoms of the bosses trying to solve their

    crisis of falling profits at the expense of workers. By whipping

    up racist attacks on foreigners, the bosses turn workers against workers and divert attention from the complicity of the

    African National Congress (ANC) which oversees the rising

    exploitation of South African workers on behalf of

    imperialism. These racist divisions do not originate in the working class. They are a disease spread in the working class

    by the capitalist ruling class. By pointing to conflict in Natal

    they attempt to blame some historic antagonism between the

    Zulus and Indians. But xenophobia was not made in South

    Africa. It was imported from Europe. It is the legacy of

    colonial exploitation begun by

    the white settlers and kept alive

    today by the ANC regime.

    As a South African woman

    posted on Facebook

    Unfortunately for our brothers and sisters from the rest of the continent, the problem is not

    just the king [Goodwill

    Zwelithini]. It is also the ANC

    which continually comes up

    with new, highly publicised

    schemes specifically targeting

    people from the rest of Africa

    for deportation. It is statements like those made recently by

    Zwelinzima Vavi, who said he condemned xenophobia but the

    displacement of South Africans from spaza shops was not

    sustainable and above all it is white capital, which lords it over Black people in SA, with the complete endorsement of the ANC

    and DA.... (ed. note, DA is the Democratic Alliance, the successor party to the white colonialist Nationalist Party of the

    Apartheid era.)

    And as another South African wrote on Facebook,

    If South Africans were so inherently Xenophobic why have such a huge amount of foreigners been absorbed and tolerated

    in our communities for so long, Many of our African brothers

    have married and assimilated into local communities, we share

    our schools, clinics and even our churches and mosques with

    them. In most townships the poorest of the poor appreciate the

    low prices and the small quantities and the long trading hours and the convenient proximity of especially Somali Spaza shops,

    Criminals have exploited these vulnerable traders, but they

    survive despite the constant harassment of police and

    gangsters, because communities need their services.

    Many are renting spaces which in most cases are the only

    income for poor households, The mutually beneficial nature of

    the presence of so many Somali and Bangladeshi traders inside

    previously no-go zones attest to the fact that South Africans

    can and have been extremely tolerant. Of course locals are

    affected, when they cant compete, but have the locals been able to deliver the quality of service that these foreign owned Spaza's are able to deliver.

    In the lower paid job market Foreign Nationals have taken

    local jobs, and of course they are being exploited by

    unscrupulous employers who dodge all the statutory

    requirements to save on their wage bill. But this is a regulatory

    issue, not the fault of the foreigners who are as desperate as the locals for work.

    The only real beneficiaries of all this chaos is Shoprite who

    can now replace the displaced spazas with USaves, and with

    the elimination of their only competition they can now

    comfortably raise prices and exploit township markets to their

    hearts content. Remember Whitey Basson earned R600 million

    rand in 2013 and his workers are the lowest paid most of whom

    are sourced from labor brokers. So yes township malls creates

    a few jobs, but do they really contribute to empowerment

    within the township economy. Does the extensive buying power

    of the informal retail sector not contribute to manufacturing

    and distribution related employment, and the economy

    as a whole. The minimal

    profits of the small and

    informal sector compared to

    the gigantic profits posted by

    the Corporate retail sector

    clearly indicates that there are

    vested interest in getting rid of

    foreign traders in the

    townships, I believe there are

    sinister forces at work and that much of what we see right now

    is not Xenophobia but

    premeditated political

    wrangling that diverts attention from the real issues which is

    excessive Corporate profiteering off the backs of the poor and

    governments failure to govern and regulate efficiently.

    For Worker-immigrant Defence Guards!

    The powerful South African working class, both domestic and

    immigrant, needs to mobilize for its own class solutions against

    xenophobic anti-immigrant racism and attacks. Racism and

    xenophobia are poison to the working class! It is necessary to

    build militant demonstrations in defence of foreign traders. In

    regards to the ANC, workers need to demand an end of ANC

    complicity with big business to deport migrant workers.

    Political strikes in defence of immigrant workers would go a

    long way also in fighting back against the attacks on the entire

    working class by the ANC popular front government which

    acts in the service of world imperialism.

    Workers/immigrant defence guards need to be organized

    immediately to protect small traders from these xenophobic

    gang attacks. In order to organize this struggle, militant

    workers need to take these demands to the unions to break

    workers from the capitalist ANC/SACP/COSATU popular

    front government and to build a mass workers party to adopt a

    workers plan to socialise South Africa under a Workers and

    Oppressed Government based on a program of One Africa for

    All Africans! For a socialist Africa!

    Revolutionary Workers Group of Zimbabwe (RWG-ZIM)

    Email: [email protected]

    Website: www.rwgzimbabwe.wordpress.com

  • Class Struggle 113 Winter 2015

    10

    Zimbabwe: Mugabe, ZANU-PF Hands 0ff Street Vendors! Hands 0ff the Street Vendors!

    The Mugabe ZANU-PF regime has threatened so-called illegal

    street vendors in Harare and Bulawayo with police and perhaps

    also army repression beginning Monday, June 8th, 2015. The

    Mugabe regime is under pressure from local and foreign

    capitalists to deal with the vendors, hence the crackdown. The

    Mugabe revolution has not secured national independence and has taken and survives due to its role of imposing the will

    of foreign capital on the masses with total disregard for their

    needs. This is the popular front trapping the masses in misery.

    Around 5 million people are involved in street vending and

    their unions have vowed to resist the action.

    The RWG calls for strike actions across the country to foil

    this attack on masses of the urban poor! In Zimbabwe,

    anyone is liable to become a small vendor who is not part of

    the labor aristocracy.

    The ZANU-PF liberators of 1980 become the quasi-colonial

    regime of today just as the Chinese degenerate workers state of

    those days who backed them has become Chinese imperialism,

    the main prop of the Zimbabwe regime today. This regime has

    failed to bring about national liberation on every imaginable score, with a real unemployment rate of 90% or thereabouts

    among the urban and even the rural working class. Thus an

    attack on the street vendors amounts to an attack on the

    national domestic economy itself. It is not a question of finding

    a proper place for our mothers to sell their goodies (ZANU-PF Political Commissar Kasukuwere.)

    The mere fact that the Joint Operations Command (JOC)

    spokesperson local Government Minister Chombo could

    suggest that the army could be employed in tandem with the

    police to herd the vendors off the streets suggests the real

    dimensions of the crisis both of the economy and the regime. It

    is interesting to note that the opposition Movement for

    Democratic Change (MDC), the opposition grouping favored

    by Anglo-American imperialism, points to the failure of the

    ZANU-PF to deliver the 2.3 million jobs it promised when it stood in the last elections. Of course the MDC has no program

    for generating these jobs, nor even a desire to do so, because

    full employment of the Zimbabwe working class would

    immediately change the relationship of class forces to the

    disadvantage of their Western imperialist sponsors.

    Jobs for all! For a 30 hour workweek at 40 hours Pay! We demand a sliding scale of wages and prices and employment for all who can work; working conditions should improve for all workers! For guaranteed employment for all who are able, a guaranteed income for all!

    We demand the introduction of state projects to employ all the unemployed! Workers! Force the government to stop the attack on the vendors!

    Land must be distributed to all poor peasants together with a state bank to provide cheap credit to all small farmers!

    Workers form action committees to lead the resistance to the growing attacks on the wages and working conditions of the poor and the livelihood of the majority poor! We call on the workers and the oppressed groups to convene a congress of delegates from the working people, peasants, urban poor, youth and soldiers to come up with a constitution that guarantees a good life for all!

    Workers break with the MDC and ZANU-PF and form a workers party that truly champions the interests of the workers and the poor masses, form rank and file unions to lead action in all unions and break with the reformist trade union leadership!

    No to US and Chinese imperialism! No to reformism and fake Trotskyism, build

    a fighting socialist party! For workers councils and for a workers state

    based upon them that defends workers and peasants against the local and foreign capitalists! For a workers and peasants government on the basis of the armed people to implement decisions that benefit the workers and the poor.

    For an African socialist revolution as part of the international revolution that alone can guarantee a better life for all!

    For a new world party of socialist revolution based on the Transitional Program of 1938 to lead the revolution to end capitalism and open the road to socialism!

    Revolutionary Workers Group of Zimbabwe

    (RWG-ZIM)

    Email: [email protected]

    Website: www.rwgzimbabwe.wordpress.com

    Subscribe to Revolutionary Worker (Paper of RWG-

    Zimbabwe)

  • Class Struggle 113 Winter 2015

    11

    The USA became imperialist, what about Canada? In Part One of this article we asked if the European Settler Colonies can break the rule and make the transition from dependent colonies or semi-colonies to imperialist powers. That rule is that capitalist semi-colonies cannot make this transition because they cannot accumulate enough surplus value to become economically independent of existing imperialist powers. We have shown in a number of articles that the emergence of Russia and China as imperialist powers is an exception to the rule because they had national revolutions that overthrew their bourgeoisies and became economically independent of imperialism. We stated however, that there was one category of colonies, European Settler colonies, that appears to be the exception to this rule. There was no question that the USA became imperialist, but what of Australia, New Zealand, South Africa, Canada, Australia and Israel? Unlike the US, none of these won wars of independence so how would it be possible to achieve economic independence from Britain and the US? While we argued that NZ, Australia and South Africa failed to become sufficiently economically independent to become minor imperialist powers, we left open the question of Canada. We will come back to the question of Israel future article.

    Is Canada imperialist?

    The situation in Canada is less clear cut and the ongoing debate

    over whether or not Canada is imperialist between economic

    nationalists and internationalists is more vigorous than that in Australia. In many ways Canada is similar to Australia.

    Originating as a British colony after defeating the French and

    then holding off the Americans the settlers occupied lands inhabited by

    First Nation peoples and started built a new capitalist

    society. Like Australia,

    Canada had many of the

    features of a settler colony

    that created the conditions

    for capitalist development

    and it too had no war of

    independence.

    However, unlike Australia,

    Canadas developed under conditions which, in the

    absence of a war of independence, allowed a national

    bourgeoisie to emerge capable of becoming economically

    independent of the colonial power. The unique factor that

    explains this seems to have been the proximity of the American

    Revolution that threatened to spread into Canada. US

    revolutionaries made incursions into Canada and there was

    widespread support for the revolution on the part of a majority

    of settlers coming into Canada. The British state had to build a

    strong national capitalist regime in Canada to defend it from the revolutionary advances from the South. In doing so, this

    colonial regime kept firm control on the settlers and put down

    two rebellions by small farmers and an uprising by Metis

    (mixed race) in the mid 19th century.

    Canadian historians generally agree on these colonial origins

    but differ on what happened next. Most argue that Canada

    ceased to be a colony controlled by Britain in the late 19th

    century but could not achieve economic independence as it fell

    under the dominance of the US as it embarked on its own

    imperialist expansion. The dependency school of thought explains this as the result of a Canadian ruling class pre-occupation with trade and commerce so that the banks played a

    weak role in investing in domestic industry which had to rely

    on US investment. Investment of US finance capital in Canadian industry therefore established a division of labour in

    which Canada was a producer of staples or raw materials, while its branch plant industry was dominated by the US. The

    result was that Canada became an economic dependency of the

    US rather than a developed industrial capitalist state or

    imperialist power.

    Yet contrary to the

    dependency theory, there is a rival school of thought

    that argues that Canada is

    imperialist. For example, Bill Burgess in the 2006

    article, Canada, Imperialist or

    Imperialized (CIOI) argues that the evidence

    today points to an

    independent finance

    capitalist class in Canada:

    Statistics Canada reports that the 25 largest

    enterprises in Canada in 1988 controlled 41% of the assets of

    all corporations in the country. As reported in Figure 1, the rate of Canadian control over the assets of this highly strategic

    group was an impressive 95%... When the top 25 ranking by assets is added to the ranking by revenues, 36 of the top 44 enterprises are Canadian-controlled. 90.2% of the revenues in

    this group are Canadian-controlled; only 8.8% are US

    controlled. The 44 enterprises account for 50% of the revenues

    of the largest 763 enterprises in Canada, and 42% of their

    assets. In other words, within the core group of corporate

    power in Canada, Canadians capitalist control is seven or eight

    or nine times greater than US capitalist control, and this does

    even include other important points of support like Canadian government policy. [Emphasis in original]

    However, proving that Canadian finance capital exists does not

    explain the why and how this finance capital emerged, a

    question which is not settled as we show below. A minority

    like Bill Burgess trace the formation of finance capital as the

    result of Canadas early development. The majority including Todd Gordon in Imperialist Canada, see the rise of Canadian

    imperialism as occurring after WW2. Within the majority some

  • Class Struggle 113 Winter 2015

    12

    like Jerome Klassen see it as a new imperialism that emerged as part of the neo-liberal free trade era of CAFTA, NAFTA etc,

    and picked up speed in the period since 9/11. Nevertheless,

    both minority and majority agree that whatever its origins Canadian imperialism is deeply integrated into US imperialist hegemony and plays the role of a secondary imperialist power.

    Origins of Canadas Finance Capital In terms of the theory that we advance about the rise of

    imperialist powers, we take the minority view on the emergence of finance capital. We argue that Canada could not

    have become imperialist unless the conditions for this had been

    established before WW1 and the redivision of the world into

    the spheres of influence by rival capitalist powers. Did these

    conditions exist in Canada? The general rule that a colony must

    wage a war of independence to win its economic independence

    from imperialism did not apply in this case. The opposite was

    true. Canada won its political independence from Britain as the

    result of its counter-revolutionary role on the side of the British

    against the American Revolution. In order for the British to

    prevent the American Revolution spreading to its colony it had

    to create a strong national bourgeoisie as a bulwark. But why would this lead to that classes economic independence from both the British and then the US empires?

    As we have seen the dependency theorists argue that Canada

    didnt win its economic independence from Britain and the resulting weakness of the Canadian bourgeoisie reflected its

    comprador role as the mercantile agent class of the British

    Empire. Such a weak bourgeoisie could not claim more than a

    merchant bankers share of the surplus-value produced in Canada. The lions share of super profits would be shipped off to Britain. The Canadian comprador state defeated settlers

    uprisings for independence on behalf of the British and without tariff protection industrial development remained backward. When Canada gained self-governing status its comprador class then looked to US industrial capital investment in branch plants. This is widely known as the Naylor-Clement thesis after those who developed this idea within the dependency camp.

    And yet the evidence shows that these features of

    dependency, while significant, were a subordinate aspect of Canadas economic development. Canadian banks invested heavily in the transport and energy infrastructure necessary for

    capitalist production. This proved that there was no split in the

    capitalist class between merchant bankers and industrialists. In fact, the big majority of Canadian capital was what Lenin later

    called finance capital the fusion of banking capital with industrial capital in large increasingly monopolistic enterprises.

    The rise of this finance capitalist class in Canada therefore

    occurred at the same time as in all the other imperialist

    powers. [Burgess, 142; CIOI, 2006]

    How to explain the rise of finance capital?

    What this proves, against both dependency theorists, and new imperialist theorists, is that Canada was already imperialist by World War I. What is doesnt demonstrate is the specific circumstances that allowed a comprador class to

    transform itself into a class of finance capitalists. Burgess

    suggest an explanation lurking in the Naylor-Clement thesis of a weak, divided bourgeoisie that proved in reality to be the

    opposite, a strong and united national bourgeoisie:

    Naylor and Clement argued that, first, there is an atypical division and rivalry between sectors of Canadian capital

    dating back into the 19th century. Second, they claimed that

    financial capital in Canada chose a continental alliance with

    US capital over a national alliance with indigenous industrial

    capital. [Burgess, Thesis, 147]

    As Burgess and others have explained, the Naylor/Clement

    thesis is based on the misunderstanding that merchant capital

    invested in building railways and canals was not industrial

    capital. Yet Canadian merchant banks which served Britain in

    Canada, employing British capital, were not merely building

    railways and canals to transport commodities to the British

    market, they were doing much more than that. They were

    laying down the infrastructure necessary for capitalist

    agriculture, forestry, and more important, manufacturing. The

    capital invested in this infrastructure was not merchant capital

    but bank and state monopoly finance capital. That is why the

    large family and state enterprises that were created at the time fused banking and industrial capital to concentrate investment

    and as a result became highly monopolised, giving rise to the

    finance capital typical of imperialism. [Burgess, Thesis, 142]

    So perhaps the explanation we are looking for runs like this:

    the Canadian settler colony converted British merchant capital

    into industrial capital by extending the circuit of industrial

    capital from Britain to the colony and at the same time creating

    the conditions for capitalist production in Canada. The

    foundations for the rise of Canadian finance capital were laid

    by the states policy of developing domestic industry, contributing to the solution of Britains crisis of falling profits, and at the same time accumulating surplus-value in its own

    right. But how was this possible without a national revolution

    to win economic independence?

    Burgess suggests that the policy of land settlement may have

    played an important role in the formation of industrial

    capitalism in Canada, but that more work needs to be done to

    prove this point. [Burgess, Thesis, 27-28] In the next section

    we put forward our interpretation of the importance of the land

    question in the settler colonies.

    The Land Question

    British imperialism in the early to mid 19th century was facing

    a crisis of falling profits at home caused by the high cost of raw

    materials due to the lack of capital investment in agriculture.

    The resulting stagnation, unemployment and poverty led to

    famines, epidemics and widespread social unrest. The political

    economist E.G. Wakefield promoted his systematic colonisation as a solution. It would put a sufficient price on the sale of land in the colonies to prevent settlers from occupying free land and at the same time use the proceeds of land sales to fund free immigration. It would solve the social problems in

    Britain as well as the underlying profitability crisis, by opening

    up new lands for capitalist agriculture to provide cheaper raw

    materials for industry at home, simultaneously creating a class

    of wage labourers. As a form of primitive accumulation, indigenous lands were expropriated by the state and sold to

    petty capitalist farmers, while denying migrant workers free

    access to land, forcing them to perform wage labor for a living.

    In short the denial of free land was necessary to ensure the separation of labor from the land to create free labor and capitalist development in the settler colonies.

    Marx critiqued this policy as implemented by the Wakefield

    Scheme. In Australia and NZ the plan failed when workers

    escaped free labor for free land proving that capital and land cannot create value without labor power. In Canada, the

    colonial state controlled crown land directly, or indirectly

    through groups of wealthy families after 1812, and then

  • Class Struggle 113 Winter 2015

    13

    through the Canada Company from 1825, all of which sold

    land at a relatively high price. So there was no free land to allow migrants to escape wage labour unless they crossed the

    border to adopt the American way. Of course the labor market was replenished by constant flows of migrants.

    So while the Colonial government did not officially apply

    Wakefields systematic colonisation they achieved its main purpose. By creating the conditions for capitalist production,

    freehold land, free labour, and capital, the colonial elite became

    a national bourgeoisie in which banking capital and industrial

    capital could merge as finance capital. In completing this

    process by World War I, Canada was already joining the

    imperialist powers, large and small, that entered that war in the

    interests of increasing its own sphere of interest rather than that

    of either Britain or the USA.

    Critique of New Imperialism The most common view of Canadian imperialism today is that

    it emerged in the post-World War 2 period. We argue that such

    a theory ignores Marx and Lenin in settling the question of the

    origins of finance capital. If Canada was not already imperialist

    by World War I on what basis could it emerge thereafter? Like

    the left in Australia that speaks of a small, secondary, or sub-imperialist Australia, the method used to arrive at this

    conclusion is empiricist. It argues that Canada during the

    epoch of imperialism can make the transition from a

    dependent or semi-colonial country and emerge as imperialist in a world already divided and fought over by imperialist

    powers in two Imperialist wars. In other words existing

    imperialist powers can step outside the laws which govern

    monopoly state capitalism to donate super-profits to dependent

    countries so they can accumulate some of these super-profits

    on their own account and even redistribute them as a socialist policy as the ANC claims in South Africa.

    This view of imperialism as bad policy is the inverse of the dependency theorists who claim that Canadas deep integration in the US security state disqualifies its imperialist status. For example Gowans argues that Canada cannot be

    imperialist because it doesnt have its own military independent of the US. Klassen rebuts this view but opts for

    the term secondary imperialist, to acknowledge that Canada, like many other imperialist powers (for example Japan) is

    subordinated to hegemonic US imperialism. Yet Klassen

    cannot explain how the US has allowed Canada to escape a

    semi-colonial fate since World War 2 other than by voluntarily

    subsidising Canadian imperialism with US super-profits. Here is empiricism in all of its glory: selecting facts to fit a

    preordained political position without reference to the origins

    of finance capital in Canada before World War I.

    Are we empiricists? No. Imperialism arose from the crises of

    overproduction and exported capital to restore the rate of profit.

    Before the epoch of imperialism proper began in the late 19th

    century, British imperialism as the dominant power by the mid-

    19th century had a colonial policy of state monopoly capitalism

    that prefigured global imperialism. State monopoly capitalism

    is parasitic and destructive in extracting surplus-value and

    resorts to war to partition the global market. We argue that British imperialism retained finance capital control of its

    colonies and semi-colonies except in the case of Canada where

    an independent capitalist class arose out of the counter-

    revolution against the American Revolution. In the epoch of

    imperialism, no capitalist colony or semi-colony has been able

    to make the transition from semi-colony to imperialist power

    since the redivision of the world economy by the imperialist

    powers in 1918. There are states like Israel and South Korea

    where modern industry has developed large multinational firms

    in the aftermath of World War 2 in 1945, but this would not

    have been possible were it not for their status as heavily

    subsidised special security states defending the interests of US imperialism.

    Canada born of the first imperialist crisis?

    We have argued here that the how and why of Canadian Imperialism can only be understood by applying the theory of

    Lenin on imperialism. Lenins theory of imperialism means that after World War 1, when existing imperialist powers re-partitioned the world into their respective spheres of influence,

    no new imperialist powers could emerge. The export of capital

    from the imperialist countries created dependent colonies or

    semi-colonies which could only escape colonial super-

    exploitation and oppression by permanent revolution. We argue

    that attempts to find new imperialisms, such as that of the British settler colonies such as Australia reject Lenin for social imperialism. This is the prevailing view of the post-World War 2 Mensheviks who think that imperialism is the bad policy of imperialist ruling classes that can be reformed

    without overthrowing capitalism.

    In Part One of this article we argued that New Zealand and South Africa are clearly semi-colonies in terms of the dominant

    share of super-profits expropriated by the major imperialist

    powers. Australia is less clear cut combining both rich semi-

    colonial and imperialist aspects. We have gone back to our

    original position on the balance of the evidence showing that

    Australias dependence on the US and China makes it a semi-colony. However this analysis has shortcomings because we

    have not gone back to Lenin to explain how and why Australia failed to qualify as imperialist by World War I. In

    that sense we weree still arguing on the empiricists terrain.

    In the case of Canada we started with Lenins theory as necessary to explain Canadian imperialism today. This means

    extrapolating back from the early 20th century to the early 19th

    century to look for the origins of Canadian finance capital.

    Canada as a British colony developed an industrial economy as

    part of the solution to Britains crisis of overproduction as the industrial workshop of the world. Britains export of capital to Canada was still merchant capital in the early 19th century,

    but became industrial capital when invested in the capitalist

    production of commodities in Canada. The Canadian ruling

    class oversaw the development of domestic capitalism and

    monopolised ownership and control of means of production,

    accumulating and concentrating banking and industrial capital as finance capital in its big banks and enterprises. That is why

    we think that it is possible to show that Canada was imperialist

    by World War I and so eliminate both the dependency theories and the new imperialist theories of the post-World War 2 period.

    If this analysis is correct it strengthens our argument that we

    can extrapolate the character of monopoly capital back in time

    in the British settler states, and show why and how the US and

    Canada, though taking very different paths, became imperialist

    while the other settler colonies did not. It also gives us more

    confidence that we are correct in developing Lenin and Trotsky to explain the exceptional emergence of Russia and

    China, which won their economic independence by

    overthrowing the imperialist and national bourgeoisies, and

    despite the counter-revolutionary restoration of capitalism,

    inherited the conditions that made it necessary for their belated

    capitalist development to become imperialism. END

  • Class Struggle 113 Winter 2015

    14

    Polemic: Russia, China and the Unfinished Permanent Revolution Facing a chronic global crisis of capitalism and intensifying inter-imperialist rivalry between the US and China

    blocs, the most urgent task facing revolutionaries today is to provide program for a new Trotskyist international

    that can lead workers in the struggle to defeat nationalism and imperialism and to the victorious socialist

    revolution. At a public meeting in London on 11 April 2015 the question of Russia and China as imperialist

    powers is being debated by the Liaison Committee for the Fourth International (LCFI) and the Revolutionary

    Communist International Tendency (RCIT). We of the Liaison Committee of Communists (LCC) argue that the

    centrist method of both tendencies cannot provide the answers workers need. We argue that both the LCFI and

    RCIT revise Lenin on imperialism and nationalism. In summary, both turn Trotskys theory of permanent revolution into a petty bourgeois program adapting to bourgeois democracy.

    Centrism and Social Imperialism

    Centrism as we understand it is a tendency on the revolutionary

    left that vacillates between the Marxist program and

    opportunist adaptation to the bourgeoisie. It functions to divert

    workers from revolutionary consciousness and action. In our view the material roots of post-war centrism in the Trotskyist

    movement are the petty bourgeoisie of the imperialist

    countries. This is what we define as social imperialism. While

    it originates in the imperialist countries, it becomes expressed

    in the semi-colonies as national Trotskyism. Social Imperialism

    is fundamentally the political program of the imperialist labour

    aristocracy adapting to imperialism on the material basis of

    relatively privileged living standards. National Trotskyism is

    the reverse side of this coin, the political program of the semi-

    colonial petty bourgeoisie who

    adapt to bourgeois nationalism on the basis of material rewards

    flowing from the defence of the

    popular front regimes.

    As Trotsky lamented in the years

    just before his death, the crisis of

    Marxism was reflected in the

    abandonment of dialectics, and

    its substitution by empiricism and

    pragmatism. These latter are

    idealist philosophies that reflect

    the surface reality of capitalism, the alienated exchange relations which in the imperialist

    countries are expressed as relatively high living standards.

    Both the LCFI and RCIT originated in tendencies that broke

    from Trotskys dialectic method as a result of their materialist roots in the imperialist petty bourgeoisie. Neither tendency has

    recognised nor completely broken with these historic roots as

    we will show.

    In the case of Socialist Fight, its roots are in the International

    Committee of the Fourth International (ICFI) under Healy. In

    reacting against Pabloism which liquidated the party into

    Stalinism, Healy liquidated the proletarian party into social

    democracy in the imperialist countries, and the radical parties of the national bourgeoisie in the semi-colonies. While the

    Pabloites adapted to the labour bureaucracy oriented to the

    Soviet Union, the Healyites adapted to the anti-communist

    Labour Parties and anti-communist Third World populist leaders.

    Below we show that Socialist Fights program today represents this particular brand of social imperialism, adapting to

    Bonapartist dictators such as Gaddafi, Assad and Putin as the

    enemies of US imperialism. It subordinates workers to Anti-

    imperialist United Fronts (AIUF) with bourgeois leaders in

    league with imperialism. It is even worse when it regards

    Russia and China as oppressed states (semi-colonies or sub-

    imperialist) and calls for an AIUF against US imperialism!

    This for us explains why the LCIF social imperialist method

    continues to reinforce national Trotskyism upon the Latin

    American members of the LCFI and the Parity Committee so

    that popular front regimes like that of the PT in Brazil are

    defended as part of an AIUF with Russia and China against US

    imperialism.

    In the case of the Austrian Revolutionary Communist

    Organisation for Liberation (RKOB) the mother section of the Revolutionary Communist International Tendency (RCIT), its

    historical roots were in a factional split from the state capitalist

    Cliffite tendency in Britain in 1975. In summary, our position

    is that the factional split with the Cliffites in 1975 which led to

    the formation of the LRCI in

    1989 was an incomplete break

    with Cliffism. Its programmatic

    statement on the workers states

    The Degenerated Revolution in

    1982 defined degenerated

    workers states as a dual state with workers property relations

    in contradiction with bourgeois

    norms of distribution which

    were the basis of the

    bureaucracys privileges.

    This meant that when put to the

    test by Yeltsin in 1991, the League for the Revolutionary

    Communist International (LRCI) backed bourgeois democracy

    represented by Yeltsin against the Stalinist dictatorship

    opposed to Yeltsin. According to The Degenerated Revolution,

    political revolution was a struggle against the bureaucracys defence of bourgeois distribution relations leading to overthrow of workers production relations. Under the pressure

    of imperialist public opinion against the Stalinist bureaucracy

    the LRCI blocked with the pro-imperialist restorationist Yeltsin

    against the Stalinist military command instead of blocking with

    workers in the defence of workers property against both

    Yeltsin and the military.

    While coming from different traditions, in breaking from

    Trotskyism and the transitional (or dialectic) method, both

    tendencies, in adapting to social imperialism, end up in the

    camp of imperialism. This is evident because the revolutionary

    agency of the working class is always subordinated to the petty bourgeois program. It is always conditioned by the mechanistic

    or schematic method of the popular front in which sections of

    the petty bourgeoisie and the national bourgeoisie guide

    workers through the struggles for bourgeois democracy, in

    particular national self-determination. For both tendencies

    national self-determination as a bourgeois democratic right is

  • Class Struggle 113 Winter 2015

    15

    always progressive even if it is a counter-revolutionary democratic dictatorship of imperialism.

    National Self-Determination

    We see social imperialist adaptation as a fundamental break

    from permanent revolution which states that in the epoch of

    imperialism bourgeois democratic rights can only be won and

    defended by proletarian revolution - that is by workers democracy. In other words the democratic revolution in the epoch of imperialism can no longer be spoken of as the

    bourgeois national democratic revolution. The formation of new capitalist nation states can only serve the interests of

    bourgeois imperialism and the unfinished tasks of that

    revolution cannot be realised other than by the proletarian

    revolution.

    So the LCFI regarded Gaddafis rule in Libya as a genuine expression of self-determination against imperialism despite

    Gaddafis role in serving US imperialism and emerging Chinese imperialism. The LCFI denied the agency of the rebels

    fighting Gaddafi as an agent of imperialism by painting them

    as CIA agents or jihadists. Today the rebels are fighting both

    the US puppet Hefter and the newly branded Islamic State (IS)

    in Libya. The logic of this has escaped the LCFI because it cannot imagine that Arab and other masses in Middle East and

    North Africa (MENA) are capable of carrying through

    permanent revolution against both imperialism and against the

    reactionary Islamic jihadists who are the agents of imperialism.

    One key aspect of social imperialism is its Eurocentrism,

    expressed today as Islamophobia.

    The RCIT was on the right side in Libya in supporting the

    revolutionary agency of the rebels. They called for the defense

    of Gaddafi from NATO, like the LCFI, but did not call for the

    rebels to form an AIUF with Gaddafi against NATO, unlike the

    LCFI, since Gaddafi was attacking the revolution. Only the revolutionary brigades can open the permanent revolution

    against both imperialism and its national dictator. Like the

    LCC they called for the revolution to fight on two fronts,

    against Gaddafi, and against NATO and its stooge the National

    Transitional Council. The permanent revolution has since

    stalled in Libya but so has imperialism which is unable to

    defeat the resistance and find a new bourgeois regime that can

    replace Gaddafi. This stalemate can only be overcome and the

    permanent revolution completed in Libya with the revival of

    the Arab revolution led by the workers and poor peasants armed resistance in Syria and Palestine, supported by

    internationalist workers.

    However, the RCITs slavish application of the bourgeois democratic schema as progressive can be seen in Egypt when

    the Supreme Command of the Armed Forces (SCAF)

    dismissed the Muslim Brotherhood, elected to power on a

    reactionary constitution that defended the military regime. The

    Muslim Brotherhood was a weak Islamic bourgeoisie of the

    bazaar seeking to replace the dominant military fraction. The

    RCIT called this dispute between two fractions of the

    bourgeoisie a coup against bourgeois democracy and an historic defeat for the working class when the election of the Muslim Brotherhood did nothing to advance the interests of the working class. This was proven by the millions of workers who

    marched against it. Such bourgeois democracy was in reality a reactionary bourgeois regime seeking to appease imperialism

    and imposing a theocratic barrier to revolution. Its removal

    meant that the SCAF was now seen openly as the power base

    behind the Mubarak regime and that it had always been the

    dominant fraction of the national bourgeoisie.

    What the national revolution in MENA proves beyond question

    is that democratic rights are only in the interest of the working

    class if they actually advance the struggle for proletarian

    revolution. In the current crisis of imperialism there is no bourgeois democratic halfway house that workers must defend

    since the very act of doing so is to take the side of the counter-

    revolution. The same applies to the semi-colonial struggles

    elsewhere in the world. We will concentrate here on the

    struggles in Latin America since in this continent, in our view,

    Trotskyism is in a much stronger position against Stalinism and

    Social Democracy than in Asia and Africa. The barrier to

    revolution on this continent is renegade Trotskyism!

    Latin America

    In Latin America the permanent revolution was subordinated to

    national self-determination. The fate of permanent revolution

    can be captured in one word - populism. The impact of the

    social imperialism on the 4th International after Trotskys death was to abandon permanent revolution and lock national Trotskyism into the left wing of the popular front. The IEC sent SWP member Sherry Mangan to Argentina in 1941 to

    unify the d