http://www.akel.org.cy , mailto:InterBureau@akel.org.cy

12^th International Meeting of Communists And Worker Parties

The deepening systemic crisis of capitalism.

The tasks of communists in defence of sovereignty, deepening social alliances, strengthening the anti-imperialist front in the struggle for peace, progress and socialism.

Contribution on behalf of AKEL

By Pavlos Kalosinatos (Member of the C.C. of AKEL)

Dear comrades,

Let me first convey to you the warmest cordial greetings of AKEL, its newly elected Central Committee and its entire membership. The 12th International Meeting of the Communists and Workers Parties is a very important event, and we therefore like to thank the South African Communist Party for hosting it and providing all means for its successful proceedings.

Dear comrades,

The great majority of the status quo economists and politicians consider the current economic crisis exclusively as a monetary phenomenon that certainly has negative impact on “real economy”. They consider, namely, that the basic interventions needed refer to the regulation of money, regulation of the financial sphere of the economy. The financial sphere is in this very concept considered to be neutral to the “real economy”.

However, we know that the current crisis which commenced in the mortgage market of the USA in Summer 2007 and rapidly evolved in a general, all world covering economic crisis, was not accidental.

The current economic crisis that the world is going through is a crisis, or better to say the crisis of the capitalist system at its imperialistic stage. We don't know whether this crisis will be worst than the crisis of 1929/1930, as many economists have predicted. It is also not predictable whether this crisis will last for one, two or even ten years. But what we do certainly know is that this crisis is a crisis of the neoliberal regime of accumulation of capital. This regime, which has the total liberalisation of markets at its core, including of course the financial markets, is once again bearing its systemic weaknesses. Once again the myth of the “invisible hand” of the free and pure competition that supposedly leads to equilibrium is collapsing.

This economic crisis has social consequences. The crisis aggravates and accelerates the already worst employment and social situation. Unemployment is increasing rapidly, income inequalities are widening, vulnerable groups are more than ever before exposed to unprecedented risks due to the deregulation and shrinkage of social welfare, while precariousness is what workers, especially younger and older workers are faced with on the labour market. The impact of the crisis are particularly dramatic for vulnerable groups of the population like women, migrants and disable people.

The economic crisis has also political implications. The capitalist oligarchy is mobilising all over to world. Rescue plans are designed and implemented. While in the last 30 years the state treasuries were empty when it came to the question to increase social spending, all of the sudden governments could mobilise hundreds of billions of Euros and Dollars for the rescue of collapsed banks. Interestingly, they had even no inhibition to transgress their own doctrine of a shrink state economic intervention and proceeded to nationalisation of banks, as it is the case in the USA and the UK. Conclusion: profits of the capitalist oligarchy are a private good, while their loses are a social good!

Dear comrades,

The economic crisis is a structural crisis of the capitalist system. Capitalism is developing the productive forces and socialising production to the maximum. Whilst billions of people are working for the production, regretfully the wealth and power is concentrated in the hands of a small minority of people who through the setting up and operation of multinational conglomerates control the means of production. This fundamental contradiction is the real root cause of capitalism's economic crises. The imposition of the neo-liberal conservative model on a global scale led to the current economic crisis assuming unprecedented dimensions and distinguishing in its scope and breadth. Working people all over the world are paying the heavy cost of the crisis. Millions of jobs are being lost. On the pretext of tackling the crisis working peoples rights and gains are being curbed, whilst labour relations are also being undermined. The majority of governments unfortunately in seeking to overcome the crisis are aiming to put the burden of the crisis almost exclusively on the backs of the working people. As a result, the class struggle is intensifying. Millions of working people all over the world are struggling to defend their rights and gains. The most recent examples in Europe are the mass mobilisations of working people and large sections of the people in France against the increase in the retirement age and in Greece against the Memorandum and the huge burdens working people are being called upon to shoulder. A general strike was organised in Spain, demonstrations held in Britain and mass mobilisations organised in Portugal culminating in the recent general strike. These mobilisations highlight the powerful reaction of working people. They categorically refute the apologists of capitalism and of the unfettered market who promised a society where prosperity would prevail for all, the same apologists who considered that we have reached the end of history and of the class struggle. The world economic crisis once more brings to the fore even more pressingly the idea of socialism; the need for the construction of a society that will be based on the liberation from exploitation, social justice and social solidarity; a society that will not cultivate the mentality of quick and easy enrichment.

Dear comrades,

Cyprus has also, with a delay of almost one year, been affected by the world economic crisis. It has to be said that the impact of the crisis on employment and production cannot be compared to other countries of the European Union. Unemployment has increased by 2,5% and the GDP has recorded a downturn of around 1,7%. We have been in the last period actively engaged in both struggling against the attempts from the side of employers to dismiss workers and employees or deregulate labour relations, as well as intervening on political level as to how the crisis should be tackled.

The government of Demetris Christofias follows a social and economic policy in the peoples interests and has implemented specific measures that on the one hand seek to alleviate the impact of the crisis on working people and on the other hand to boost the economy and stimulate growth, by increasing public investments, among others through a huge housing scheme for low income families. Furthermore, it has put an end to any attempts to impose privatisations and to undermine the gain of the cost of living allowance. It also lays special emphasis on increasing the purchasing power of vulnerable groups, such as pensioners, and other groups of people who are in need of public assistance. Corresponding measures are being taken by the government to support employment in the tourist industry which was also affected by the crisis.

Dear comrades,

While the crisis and its anti-popular policies and measures are dominating the economic and social domain, imperialism is attempting to further consolidate and expand its hegemony also in the political, military and geostrategic sphere.

I am referring to the NATO Summit that was held in Lisbon just a few days ago (19-20 November), where the new Strategic Concept 2020 of NATO was approved, reinforcing its role as world police officer representing the geostrategic and economic interests of imperialism. It is clear that NATO is doing that by further undermining the United Nations and International Law.

Furthermore we are faced with the militarisation of the European Union. Ten years after the official beginning of the elaboration of the European defence and security policy, and one year after the start of the enforcement of the Lisbon Treaty and having by now the legal cover too, the EU is moving forward shaping its imperialist profile by all means, in particular through the creation of various institutions aiming at constructing the military dimension of the EU, so as to provide the Union with, as they say, with all "the necessary tools to play its global role".

Dear comrades

The causes of the crisis have to do with the nature of the capitalist system itself. The world economic crisis has once again unveiled the inhuman character of capitalism. The future of humanity cannot be a system which has as its primary goal the continuous concentration of wealth and the maximisation of profit, to the detriment of workers. Therefore, to overcome this system of exploitation cannot but be the strategic aim of our movement. And we will overcome this system with socialism.

Many status quo politicians like mentioning that the “crisis is catastrophic, but it provides at the same time a chance”. Of course, when they refer to an “opportunity” they mean an “opportunity” for more labour flexibility, reduction of real wages, less state intervention, more social cuts. So, business as usual. Nothing changes in this regard.

But, indeed there is an “opportunity” arising out of the crisis. There is an opportunity for the labour movement, especially for the class oriented one. The crisis has the potential to lead to an increase of class awareness among workers. This is, of course not happening automatically. Worsening of social and working conditions always produces frustration. But not always is frustration channelled in coordinated struggle for defending and strengthening the rights of workers and for the improvement of their standard of living. How to channel this increasing frustration and disappointment among workers into coordinated and organised struggle, presents the most important challenge our movement is faced with today.

To this extend our movement must

• Reinforce its ideological intervention within the labour movement providing a class oriented perspective to the crisis, in the context of the systemic crisis of capitalism at its imperialist stage;

• Strengthen our presence at every level of work and struggle, whether it is at the work place, the enterprise, the branch or at the national and international level;

• Promote unity in action at the grass root level;

• Be in the position to formulate and struggle for demands that address today's problems and challenges workers and their families are confronted with;

• Have a clear and realistic position aiming at facing attempts to burden the consequences of the crisis on the shoulders of the working people.

• Decisively oppose NATO and demand its dissolution as well as the closing of all military bases on foreign soil; the general prohibition of nuclear weapons and complete nuclear disarmament; the sharp reduction of military expenditure and weapons by redirecting the resources for peaceful purposes - to education, health, development of research and technology for peaceful purposes - and for humanity's development and the protection of our planet and environment.

Dear comrades,

For us, the path for our future struggles goes hand in hand with the unity of the forces of the Communist, Workers and progressive parties on a regional and international level. We should aim at the assumption of joint actions and policies when and where this is feasible and based on the respect of the peculiarity that characterises every party.

On our part, we shall continue to struggle for a peaceful solution of the Cyprus problem based on International Law and within the framework of the United Nations, aiming to the reunification of our country and people under a single state with a single sovereignty and international personality. We are struggling for the transformation of our country into a bridge of peace with the countries and peoples of the much suffering region of the Eastern Mediterranean.

We furthermore shall continue to resist any attempts to equate communism with fascism and the criminalisation of our ideology and symbols, because what is underway is the heralding of anti-democratic and anti-peoples plans.

We shall continue to support the international class-based trade union movement, the World Federation of Trade Unions (WFTU), the World Peace Council (WPC), the Women's International Democratic Federation (WIDF) and the World Federation of Democratic Youth (WFDY). At this point we salute the 17th World Festival of Youth and Students, which is opening its gates to the international youth and students movement these coming days in South Africa and express our gratitude to our south African comrades for making it possible.

We shall continue to adhere to a consistent position of solidarity and support with the struggling peoples. We shall continue to organise and participate in meetings of our Parties, aiming at our joint action and struggle for the defence of the rights of the peoples and the deepening of our understanding and cooperation.

Thank you very much!