THE CRISIS OF CAPITALISM, GLOBALISATION
AND THE RESPONSE OF THE LABOUR MOVEMENT
Athens 21- 23 May 1999

by Stavros Evagorou
Member C.C. AKEL
Head Economic & Social
Research Bureau

Dear Comrades,

First of all I would like to congratulate the Communist
Party of Greece for its initiative to organize and host his
International Conference of Communist and Labour parties.
A Conference, which is growing in significance and is
becoming more topical, if we consider the fact that it is
taking place at a time, when the peoples of the earth are
becoming witnesses of the most barbaric, criminal and
illegal at the same time aggression against the people of
Yugoslavia. Witnesses of a criminal NATO aggression, which
is carried out in violation of International Law and of the
Charter of the UN.

In other words, this is the New Order. A disorder, where
the balance of terror of the cold war has been replaced by
terror itself. A disorder, where due to the absence of the
opposing fear, the international American sheriffs impose
by merciless violence the interests of the multinationals,
their world domination and the re-distribution of the
world.

In this wicked role, NATO is following the same course and
is cooperating with reactionary international institutions,
which promote the domination of multinational capital
worldwide. The International Monetary Fund and the World
Bank, utilizing a single prescription book for all economic
maladies operates as the principal loaning body in the
world. It grants loans imposing, of course, unbearable
conditions on the states and social-economic practices,
which strangle countries and lead peoples and the working
people to misery. For the IMF and its �number-centric�
conception, the human being, the working man and woman, is
nothing but an element of the costs in a capitalist
enterprise. The aim, therefore, of the International
Monetary Fund is the strangling of states, their conquest
from within and the elimination of any kind of resistance
in preparation of the terrain for the prevalence of the
multinationals and market expansion. Due to the role it
plays as the principal world loaning institution, harsh
austerity measures have been imposed in tenths of countries
in Latin America, Africa and Asia, which have led the
majority of the masses to misery and destitution. Other
countries at the brink of economic collapse, like Russia,
were forced by what amounted to a blackmail, to adopt
unbearable recipes of economic development in order to
secure loans.

In those places where resistance persists, then NATO
intervenes to clear once and for all, as is now the case in
Yugoslavia.

How strongly is Lenin justified, when he says:
�Imperialism is capitalism that has reached a stage of
development where, first, the domination of monopolies and
financial capital are secured, second, the export of
capitals has acquired a domineering significance, third,
the distribution of the world among the international
trusts has started, and finally, the re-distribution of all
regions of the earth among the major capitalist countries
is being completed!

Comrades.
The process or the starting phase of globalization is
wrongfully presented by certain circles as the end of a
many-years-long course, which leads to the eventual triumph
of the neo-liberal capitalist model of development.

To the question, what is globalization, we can reply that
it is a process, which aims at the creation of a single
world economic area. It is a process that started long ago
and which indicates the increased interweaving of the
goods, services, labour and capital markets.

In the whole globalization process we encounter three
phases, which co-exist and are interlinked. Let us,
therefore, attempt to define these three phases, replying,
at the same time, to some reasonable questions with regards
to the causes as well as the ways this globalization
�phenomenon� manifests itself, and also which are those
visible and invisible forces, that lead or direct
globalization.

First of all, it is �internationalization�, which
constitutes an objective, comprehensive, social economic
process, which started centuries ago by more �primitive� in
comparison to today forms and continues taking other
dimensions leading to the next phase - the integration.
Internationalization, therefore, is a lengthy process,
which begins with the classic forms of exchange of goods,
getting up to the contemporary and complex economic
relations (trade of goods and services, trade of
technology, export of capitals, transfer of labour force
through the migrant waves at the beginning of the century),
which are features of the development of economic relations
between states, nations, peoples and separate economic
units. Internationalization of economic structures at its
most advanced phase leads to regional integration under the
weight of relentless antagonistic pressures on national
capital. Capital, is seeking new areas of influence, in
agreement with and many times united with the capital of
other neighbouring countries, promotes and creates
�regional economic integrations�, creating broader space of
activity and influence. The creation, already, of single
economic spaces, constitutes the economic basis of
development, which in its turn defines the political and
social superstructure. In the course of events, of course,
and at a more mature phase, there is a mutual-definition
and mutual-influence of the two concepts, resulting in that
the next steps of development escape from the objective and
non-conscious and enter the phase where the single regional
social and economic space to develop consciously and on the
basis of defined political and ideological objectives.

Through the internationalization of the market and the
regional economic relations, we are gradually being led to
the creation of a Single World Economic Space.

The process of globalization, of capitalist globalization,
because this is what it actually is, which is promoted by
the multinational monopolies is characterized by four
principles freedom of capital movement, freedom of goods
movement, freedom of services movement and freedom of
labour movement. In essence, these four principles
safeguard absolute unaccountability to the multinational
monopolies to regulate everything with respect to their
interests and the objective to safeguard the greatest
possible profit. It is, therefore, clearly seen that the
objective of globalization of economy, in the way this is
carried out today, is tantamount to the world prevalence of
big capital, of the multinational companies and of the
political mouthpiece of their interests.

We have to admit that, the signing of the GATT treaty and
the founding of the World Trade Organization, on the one
hand, and the targeted Multilateral Agreement on
Investments on the other, constitutes regulations imposed
by the multinational capital and a substantial step towards
the direction of capitalist globalization.

The process of capitalist globalization has led to the
phenomenon whereby the world is today governed by the rich
states, which, in their turn, are governed by their rich
citizens, who control the multinational enterprises.
Concerning its essence, globalization constitutes a system
of financial subordination and exploitation of the depended
and economically under-developed countries and their
peoples by a handful of capitalist states and their
multinational monopolies.
The globalization of economy constitutes in essence the
economic basis of world domination of the multinational
companies, the powerful states and mainly of the United
States, which promote the PAX AMERICANA policy. The United
States use precisely the globalization of economy in order
to impose their positions and interests also in the
political field. In that, they use NATO in the military
field, whenever and wherever needed, with NATO undertaking
in essence duties of a world policeman in order to
subjugate the states and peoples of the world.

Globalization, in the way this is taking place
(liberalization of international trade and
internationalization of production) leads to the
redistribution of the coefficients of production, both on a
world and a national level. On the world level, a
concentration is observed of technologically- and
knowledge-intensive activities in developed countries and
at the same time, transfer of activity intensive, unskilled
or low-skilled labour towards developing countries.

On a national level, a transfer is observed of productive
resources from protected activities to liberated ones,
wherever each country disposes or can acquire comparative
advantages.

These tendencies entail significant consequences, such as
increased unemployment and deterioration of the standard of
living of the working people and destruction of the middle
strata. From the globalization process and the competition
a social cost is created, which is loaded on the shoulders
of the working people through the reduction and decreasing
of their wages and salaries, as well as through the cut of
social benefits.

A classic case of exercising pressure and decreasing the
wages and salaries of the working people is the transfer of
production from rich countries to countries that offer
cheaper labour and raw material.

AKEL as a matter of principle is not against the process
of Globalization. It is, however, against the present form
and content of globalization, which is carried out by the
multinational monopolies and the leading circles of the
United States and which lead to the economic exploitation
and subjugation of the states and peoples by a group of
multinational monopolies.

AKEL is in favour of the development of interstate
relations and internationalization of economy, that would,
however, be built on the basis of equality, national
independence, respect of sovereignty, solidarity and
cooperation. To set en route a new globalization process,
that would have at its centre solidarity and cooperation of
states and peoples, presupposes, of course, radical changes
in the interior of the states, presupposes the overcoming
of capitalism and the construction of a Socialist society.

The need to overcome capitalism is today even more urgent,
as the prevalence of this unjust and exploitative system
lead, by mathematical preciseness, to the return of
humanity to barbarity. The need to face the attack of
capital and the multinationals makes the organized struggle
of the peoples to defend democracy, human rights and the
achievements and interests of the working people absolutely
necessary. The Left, its parties and organizations,
shoulder enormous duties. The hope for better days to come
lies in the organized, conscious, multifaceted class
struggle.

The overcoming of capitalism and the building of a new
Socialist society with man at its centre, as an active cell
of society and part of nature, is a fundamental
precondition for man and civilization, for him to survive
on our planet.

AKEL aligns itself along with the other communist and
labour parties of the planet for a multifaceted and
multi-level broad cooperation, with the objective to
coordinate our actions within the framework of common class
struggle and the struggle against neo-liberalism,
capitalist globalization and NATO arbitrariness.

It is known that Capitalism bears, gives birth over and
over again to crisis. This is its role, destination and
fate. The revolution in the means of production
objectively leads to the quest of profit in all corners of
the planet, as a result of which periodical crisis are
globalized, a phenomenon we face today. Quite naturally,
therefore, globalization of the productive process of
capitalism leads to the global spreading and overall crisis
of capitalism.

Capital, having as its permanent aim the maximalization of
its profits, is obliged to upgrade and modernize its
production in order to employ constantly less labour force.
At the same time, competition forces it to pursue low
labour costs policies for those remaining in the process
of production. The constant sacking of working people from
their jobs, and the intolerable pressures on the income of
those continuing to work, is one face of the same coin.
At the same instant, however, if we turn the coin over, we
will ascertain that more goods and services are constantly
created. In this way, however, instead of creating
additional demand in order to absorb the surplus
production, the sacking of labour force limits also the
demand. Consequently, capitalism is unavoidably led to
crisis, digging at the same time its grave.

Comrades,
Humanity is or soon will be again before the major dilemma.
The dilemma of capitalist anarchy and barbarity or balanced
social and economic development through absolutely new
production structures and relations. On the one hand we
have the vicious circle of the capitalist way of
production, which in every one of its rotation leaves
behind ruins, poverty and misery. On the other hand,
however, there is labour, which is the majority and the
principal coefficient of the creation of wealth - the world
labour movement.

Capital has long broken national borders. It is time,
conditions impose it, for labour, for the Labour Movement
too to proceed, coordinate itself, act, and mobilize the
masses, through a minimum of common goals.