Well, the Crisis of Capitalism has arrived – So, what do we do now?!

Not just a ‘Credit Crunch’ – but a ‘Crisis of Capitalism’

This year’s SSP Conference takes place against the background of an unprecedented crisis for capitalism. Every day it becomes clearer that the problems in the economy are not just confined to the over-inflated world of finance, but are having a major impact on the productive sector, as factories face closure or short-time working. Furthermore, the large drop in government revenues, due to the big decline in economic activity, threatens huge cuts in social expenditure and provision too. Brown and Darling officially concede that we are living in an economic recession. Other analysts and commentators openly talk of a new depression, perhaps even deeper than that of the 1930’s.

Marxists have long talked of the crisis of capitalism, albeit often only amongst themselves. What is new today is that so many economic commentators agree. The difference now lies in their proposed solutions to deal with the current economic situation. For the mainstream economists, in the various corporate funded think-tanks and university economics departments, the debate is confined to what is the best way to get the capitalist system fully up and running again. In other words how can capitalist accumulation and profitability be restored?

What has changed, in the thinking of business executives and politicians, is the sharp decline in their earlier belief that everything could be left to the market. When the global economy was ‘booming’, millions of workers could have their real wages and social benefits cut, whilst being offered seemingly ‘limitless’ credit as an alternative. Many more millions of peasants, throughout the world, could be uprooted and forced to seek a ‘better life’ as transient migrant labourers. However, whenever workers and peasants made any calls for government funding to address their immediate problems, they were brusquely told by neo-liberals that this would only stall the engines of economic growth. Now, in the face of the economic crisis, which threatens the rich and powerful too, recent advocates of neo-liberalism are on the defensive, as they shamefacedly look to governments to bail out their system.

Neo-liberalism and neo-Keynesianism – the two faces of capitalism

This helps to explain the rapid rise of neo-Keynesianism, with its calls for greater government spending and state regulation of the economy. Keynesianism originally developed in the 1930’s as the ideology of the capitalist system in crisis. It became economic orthodoxy after the experience of the Great Depression and the Second World War. In 1971, the then Republican US President, Richard Nixon, could say We are all Keynesians now.

By then, the majority of capitalists were in agreement over the economic mechanisms needed to keep any economic crisis at bay. However, just as an earlier Gold Standard, free market, economic orthodoxy was dealt a fatal blow by the Stock Market Crash of 1929; and just as the recent global corporate, neo-liberalism has faced its nemesis in the 2008 Credit Crunch; so too, capitalist confidence in Keynesian panaceas came to an end in the mid-1970’s.

It had then become obvious that the maintenance of profit rates was incompatible with steadily rising wages and an expanding welfare state. Furthermore, after 1968, workers’ rising expectations led to large numbers taking strike action, and even to some workers occupying their factories, to defend and advance their interests. Squeezed between declining profits and rising class struggle, capitalism was once more under threat.

This is why big business turned to the previously marginalised, ‘free market’ economists, such as von Hayek and Friedman, to help them overcome their latest problems. These neo-liberals opposed government intervention in the economy and believed that it could be left to ‘the invisible hand’ of the market. However, it was only with the backing of the very visible hand of the state, that the ‘full freedoms’ of the market were restored. Thousands of Chilean socialists and workers were killed after Pinochet’s military coup in 1973, whilst in 1980’s UK and USA, the Thatcher and Reagan led governments promoted mass unemployment and union-busting offensives to discipline the working class.

The Libertarian Right’s dream of a stateless society under the free market proved to be a utopian illusion built on the false notion that capitalism can thrive best without government interference. The application of neo-liberal policies certainly led to the cutting of government spending in the field of direct social expenditure. However, indirect taxes were increased and spending was diverted to the coercive arms of the state – the armed forces, police and judiciary – to undermine the power of the working class; or given directly to the corporations through military spending and other government contracts.

Imperialist interventions were stepped up once more, particularly in Latin America and the Middle East. Some of these had direct economic intent – to ensure corporate control over such vital assets as oil; others were demonstrations of raw ruling class power, to remind people just who was boss, and to promote favoured clients in the ‘Third World’. Even the elimination of the USSR-led ‘state socialist’ competition, after 1989, failed to reverse the rise in state expenditure in the West. ‘Free markets’ now depend on massive and continually increased government intervention and spending.

Thus, throughout the prolonged period of neo-liberal ascendancy, from 1979 to 2008, global corporations were benefiting from government promoted wars, and by military, police and security operations designed to break-up ‘communities of resistance’, thus creating pools of cheap flexible labour. Private capital also gained from the huge rip-offs of the tax-payer associated with PFI/PPP schemes; and from the state’s resort to the use of costly private agencies and overpaid consultants.

Far from renewing a ‘free market’ economy, with a much-reduced ‘night-watchman state’, the big corporations and their neo-liberal supporting politicians presided over the continued expansion of, and their dependency upon state power. ‘State capitalism’ was not confined to, nor did it end with the demise of the Soviet Union between 1989-91. It morphed into a new single global order with the definitive victory of the corporate executives over the party bureaucrats. On a world scale, the global corporations were now the prime beneficiaries of state power.

Furthermore, the demise of the Soviet Union meant that, for a certain period, the US state, which fronted the largest collection of global corporations and had the most powerful armed forces in the world, could either pressure the ‘international’ UN to sanction wars in its interests (retrospectively, if necessary, as in Iraq), or just go it alone. After ‘9/11’, the US state also took upon itself the role of handing out ‘anti-terror licenses’ to supportive governments so they could crush their own troublesome oppositions, e.g. Israel and the Palestinians, Sri Lanka and the Tamils. Meanwhile the arms corporations in the USA, UK, Europe and Israel made billions.

Despite all their support from the state, super-confident and arrogant corporate executives opposed any public scrutiny of their activities. They pushed for the ending of all government regulation of the economy. They demanded the protection of private companies’ ‘commercial confidentiality’, even when undertaking publicly funded projects.

The net result of all this direct and indirect state assistance, combined with the lack of any meaningful public scrutiny and accountability, has been a massive switch of wealth to the ‘masters of the universe’. It also led to greatly increased incomes and perks for their supporters in the media, those they fund in various ‘educational’ institutions, and of course, for their apologists in government. So, by the 1990’s, Clinton’s Democrats and Blair’s New Labour Party could easily have said, We are all neo-liberals now.

However, the current economic crisis has shown that, even in the private, privatised and deregulated sectors of the economy, over which the corporate executives declared their complete competency, they have failed spectacularly. So now they openly demand, on top of all their earlier massive, if largely publicly unacknowledged, state support, mind-boggling financial government subventions – at our expense. This is not to be done for the wider benefit of the public, who have never figured in corporate executive concerns, but to ensure that their current staggering losses are socialised, and to restore their private profits in the future.

(Neo)-Keynesianism, national protectionism and the drive to inter-imperialist wars

As the current economic crisis deepens, even those publicly unaccountable transnational institutions, which corporate capital and its political backers have created or moulded to further their global interests – e.g. G8, IMF, World Bank, WTO, GATT, NATO and the EU – are being subjected to increased internal strains. An overstretched and badly bruised USA can no longer command automatic support for its imperial ventures – especially when they are unsuccessful. China and Russia, and possibly even the EU, or its bigger constituent states in the future, are pulling in different directions, opening up the even more dangerous prospect of inter-imperialist wars.

Faced with falling profits and the devaluation of their assets, competing national ruling classes are beginning to move away from their recent international capitalist cooperation and opt instead for ‘me first and devil take the hindmost’ policies. National neo-Keynesianism is linked to new protectionist drives, designed to uphold particular national capitalist interests, to set worker against worker, and to make future shooting wars between major imperialist powers more likely.

Furthermore, there is the chilling reality that, although several national governments pursued Keynesian policies in the 1930s, these failed to end the Great Depression. Just prior to the First World War, Rosa Luxemburg had anticipated the choice facing humanity – Socialism or Barbarism. However, it took two world wars, with millions dead and the massive destruction of accumulated capital, to eventually give capitalism a new lease of life after 1945. Any future world war, however, brings the very real prospect of human annihilation, whilst the increased capitalist degradation of the environment adds another twist to Luxemburg’s warning. As the marxist philosopher, Istvan Mezsaros has said, the choice now lies between Socialism or Barbarism if we are lucky!

One worrying early example of the future likelihood of inter-imperialist wars has occurred since the last SSP Conference. The nasty little conflict, which emerged in South Ossetia, last August, highlighted the growing US/Russian antagonism. In this particular case, the US client government in Georgia, led by President Saakashvili, was unable to provoke the direct US intervention it sought on its behalf, despite the rapid Russian reaction to his bloody invasion of South Ossetia. The USA was too bogged down elsewhere to open up a new military front against such a dangerous adversary as Russia.

Saakashvili had to eat humble pie, as the Russian military took control of and guaranteed the ‘independence’ of South Ossetia and Abkhazia. The notion that Medvedev and Putin did this for the benefit of two of the many oppressed peoples of the Caucasus would not impress many Chechenyans. Successive US governments, though, have had more success in promoting their imperial aims in the one-time Warsaw Pact countries, and even in the former Soviet Baltic states. These have been drawn into NATO.

US and Russian inter-imperial competition continues, and is now focused upon Ukraine. Its shaky coalition government has recently faced threats to Russian-supplied oil and gas deliveries. This represents a warning from the Russian state not to get any closer to the West. Yet, the lengthy Russian borderlands represent just one potential shatter zone, which could become the focus of a rapid escalation of inter-imperialist wars in the future.

Israel represents another US client state, only too eager to provoke wider wars, to provide cover for its leaders’ desire to ethnically cleanse the remaining Palestinians. During the dog days of the outgoing Bush administration, Barak Obama was keen to be seen to take initiatives to deal with the crisis-ridden American economy, but he remained silent over the Israeli invasion of Gaza. The likely formation of an even further Right Zionist government in Israel, under Netanyahu, seems only to have prompted the US government to attempt to further cripple the elected Hamas government in Gaza, under the guise of foreign aid, channelled through the US/EU/Israeli Palestinian Authority stooges.

President Obama’s new administration includes nobody even remotely connected to those misguided radicals so important to the success of his election campaign. This is because they were not so crucial to his future project – the re-branding of US imperialism – as those big business backers, who now determine the real direction of US state policy. Obama’s Cabinet now includes Republicans, Clintonites and avowed supporters of any Israel – no matter how belligerent and oppressive the government in power. He has, in effect, formed a national coalition. Obama wants to get wider international imperial assistance, after the disastrous gung-ho, go-it-alone record of Bush and his neo-liberal advisors.

After facing unforeseen resistance, Iraq is largely being given-up as bad job. Nevertheless, it has been left in a much weakened and balkanised state, unable any longer to play a role as a regional power. Where outright victory can not be achieved, then a legacy of massive destruction and dislocation has become the preferred US policy option. Israeli operations in Lebanon and Gaza follow the same pattern. This may still provide openings for non-state terrorist organisations to operate; but if they become troublesome, then massive all-out bombing offensives can be launched, with total disregard for the wider human consequences. Increased numbers of US troops are now being sent to a disunited Afghanistan to cause even more havoc and misery. Meanwhile preparations are being made for more draconian sanctions against Iran.

Thus, just as neo-liberalism was not merely an economic strategy, but was accompanied by massive US imperial interventions throughout the world; neither is neo-Keynesianism confined to purely economic measures. It can only lead to further imperialist wars and to increased inter-imperialist competition, with dire consequences for humanity.

Looking at the world through different SSP lenses

Our annual Conference is the time to take a close look at these latest developments, and to debate the policies needed to address the situation we face. The SSP is a broad-based socialist party, which includes different organised platforms as well as less clearly formed tendencies. Conference resolutions are a reflection of these different approaches. The fact that self-declared revolutionary socialists may often find themselves in a minority can easily be understood in today’s non-revolutionary conditions. However, as long as there is genuine democracy in the SSP, the possibility of winning members (and others) to consistent republican and communist politics remains open, in the changed circumstances of the future.

So, what are the political tendencies to be found in the SSP? After the split, overt Left nationalists have become a weaker force, with the departure of the SRSM and several former SNP members. Similarly, Left unionists are a diminished presence, with the departure of the CWI/IS, SWP, and the apparent demise of the Left Unity Platform (although one of their constituents, the Left unionist and social imperialist AWL, still has members in the SSP).

The once dominant International Socialist Movement (ISM) has fragmented, leading to the rise of a variety of Left nationalist, Old Labourist, Green Left, radical/socialist feminist, and pro-social movement, spontaneist ideas. Former ISM platform members still form the majority of the SSP leadership, but are less politically cohesive than they once were. This has allowed other politics, including republican socialist, to make headway in our party.

Although Frontline no longer considers itself to be organised platform of the SSP, in some respects this journal represents a kind of ‘Continuity ISM’, where debates between and beyond former ISM members continue. The former ISM’s international contacts were less extensive than those of the CWI, which they originally broke from, but are still valued by Frontline contributors. Perhaps the closest of these are to be found in the Australian Democratic Socialist Party/Green Left and those Fourth International members, some in the French LCR, and others grouped around the magazine Socialist Resistance in England and Wales. Socialist Resistance has replaced the SWP as the main organised grouping in the post-split Respect Renewal. Unfortunately, Respect’s leader, George Galloway, is a Left unionist. He used his Daily Record column to give support to New Labour in the Glasgow East and Glenrothes byelections. Worryingly, neither Frontline nor Socialist Resistance has publicly commented on this.

Orthodox Trotskyism claimed that nationalisation = socialism

Since the old ISM came out of the Trotskyist and CWI,/Militant traditions, it will be interesting to see how their view of the economic crisis develops. ‘Nationalisation of the top 200 companies’ was always a particular Militant shibboleth. There has been much loose talk in the media, following the effective nationalisation of several major banks by the US and UK governments. Some have even declared that, We are all socialists now.

This equation of ‘nationalisation’ with ‘socialism’ has been the hallmark, not only of neo-liberal economists, but also of official and dissident communists (or socialists as Trotskyists prefer to call themselves in the British Isles). The last vestiges of effective workers’ control of the Soviet economy had been eliminated in 1921, after the crushing of the Kronstadt Rising. After that, official and dissident communist claims that the USSR was still moving towards ‘socialism’, rested either upon the continuation of Communist Party rule, or the extension of nationalised property relations. The idea of socialism became separated from that of genuine democracy or effective workers’ control.

In the USSR, the reality was that the working class had no effective control over the economy, only the ability to passively resist top-down directives – They pretend to pay us, we pretend to work. Indeed, in the West, during the highpoint of class struggle between 1968-75, workers exerted more effective influence over the private companies they worked for, than did those workers in the East over ‘their own’ so-called ‘Workers’ States’. This was because of the relative strength of workers’ organisations in the West, at that time, compared to the situation workers faced in the East, where they had no independent class organisations of their own.

We have to be on guard against any notion of ‘socialism’ that separates state control from effective workers’ and popular democratic control. Any nationalisation or large-scale government funding measures under New Labour can only be aimed at meeting the needs of Brown, Darling and Mandelson’s real class backers – the global corporations.

Therefore, all those parties, which just voted for the government bail out of the banks, behaved in the same manner as those First World War Social Democrats who voted to provide war credits for their governments. For the decision to give trillions of dollars, pounds and euros to corporate capital amounts to a declaration of war upon the working class. We are going to be called on to pay for this through a massive austerity drive and further wars.

What is socialism and communism? – The need for a widened debate in the SSP

Nick McKerrall (Frontline) has been arguing for some time, that the SSP has not yet really developed a programme, which can address the situation we face. The RCN disagrees with Nick’s advocacy of a temporary retreat from public politics, in favour of a period of internal education. We believe, not only that you can do both, but that theoretical and programmatic development stems from political practice as well as from internal party education. However, we do agree with Nick that a new SSP programme is required. To do this though, the SSP needs to undertake a serious analysis of exactly what we mean by socialism (and/or communism) and, in particular, what role we see for the state, both today and in any revolutionary transition to a new society.

This is why, following on from our well-received pamphlet, Republicanism, Socialism and Democracy, we intend to produce another later this year, which addresses the issue of Communism and Socialism. Istvan Mezsaros’ challenging new book, with its essay, Socialism in the Twenty First Century, makes a major contribution to the wider ongoing international debate on this largely abandoned area of theory. The RCN has also been following the interesting ideas put forward in The Commune, a new website magazine, which is also beginning to re-examine earlier ideas about what constitutes socialism/communism.

There have always been some in the SSP who hanker after the days of ‘Old Labour’ (albeit within a Scottish national framework). This is not surprising, given the historical strength of Labourism in Scotland, and the spectacular betrayals of New Labour. The sudden revival of officially sponsored Keynesianism could give some sustenance to those who claim that state ownership is inherently better than private ownership, regardless of who controls the state.

However, the renewed debate between neo-liberals and (neo)-Keynesians should be used as an opportunity to put forward a distinctive socialist challenge to both these variants of capitalist thought. If all we do is become Left Keynesians, championing the role of the capitalist state over the capitalist corporation, then this can only contribute to the rebuilding of the discredited Labour Left, and to the possible demise of the SSP. Over a decade’s hard work to create an independent socialist organisation will have gone to waste.

The political dangers of national protectionism – ‘British jobs for British workers’

If the war in South Ossetia heralded possible new inter-imperialist wars, then the politically ambiguous legacy left by the recent strike at the Lindsey oil refinery, highlights the dangers of the shift to the politics of national protectionism. The defence of hard-won national contracts for all workers, whatever their nationality, is vitally important, especially since Lord Mandelson is the main promoter of ‘drive to the bottom’ in the EU. However, the reactionary demand of ‘British jobs for British workers’ can not be glibly dismissed. The BNP may have been seen off the picket lines, but you can bet it will be their support that grows in the forthcoming EU elections, and not those of some socialist parties hailing a great victory. Furthermore, the claim that such specifically ‘British’ appeals have little purchase in Scotland, are also worrying, given the undercurrent of unionism and loyalism, which can still be found here. Union Jack caps were to be seen amongst the Grangemouth strikers.

At present, the main danger to workers in Scotland is not the BNP, but the revived credibility of such Labour Party trade union leaders as UNITE’s Derek Simpson. He jumped on to the ‘British jobs for British workers’ bandwagon to cover up his opposition to any rank and file control in the union, and to smother the recent exposes of his privileged fat-cat lifestyle, paid for by union members. It was the Broad Left leaders of UNITE who undermined earlier militant strike action by Heathrow cleaners – but they were largely Asian women workers.

There has also been the attempt by Bob Crow of the Broad Left led RMT to play the ‘British workers’ card. He is trying to form a ‘No2EU’ electoral challenge in the forthcoming Euro-elections, with a platform defending ‘British democracy’ and opposing ‘social dumping’, i.e. migrant workers. Much of this could be accepted by the anti-EU UKIP.

The only significant strike in the last year in Scotland was that conducted by Grangemouth refinery workers to defend their pensions. Their success was linked to their key role in the economy, and has not been repeated by other workers whose pensions are under attack. Although there have been other strikes, involving civil servants and post office workers, these have been the token one day strikes used by trade union bureaucrats to let off steam. This perhaps explains the lack of motions this year to Conference addressing industrial struggle.

Broad Left versus Rank and File

Broad Leftism, however, remains the dominant industrial strategy pushed by the SSP leadership. In this there has been little movement from the old Militant tradition. Broad Leftism sees the main job of socialists in the unions as being to try and replace Right wing leaders with Left wing leaders, through winning leading posts within the union bureaucracy. The underlying problem with this strategy is highlighted by the appearance of new Broad Left campaigns to replace old Broad Left leaders who have themselves become the new Right.

The alternative Rank and File approach, advocated by the RCN, represents an industrial republican approach. We see union sovereignty lying not in the union HQs, but in the collective memberships in their workplaces. Socialists should not accept the union bureaucrats’ right to dismiss workers’ own actions as ‘unofficial’. When such activity occurs, this amounts to independent workers’ action. When action is extended by means of mass picketing, it should still remain under the effective control of the workers involved. Elected officials, on the average pay of the members they represent, should service not control rank and file union members.

Furthermore, there are now large swathes of non-unionised workers in the country. A debate needs to be opened up in the SSP about the possibility of building additional, new, independent rank and file controlled unions. Too often, socialists can become mere recruiting sergeants for the existing cynical dues-pocketing bureaucrats, who offer no real support to their new members. Here, the experience of the Independent Workers Union in Ireland could be valuable. Ireland is a country where trade unionists have been hamstrung, since 1987, by the bureaucrats’ support for social partnerships with the government and employers.

As with Derek Simpson’s posturing, we should also be on the look-out for other moves to hoodwink workers, who are increasingly questioning union leaders’ near total commitment to New Labour and ‘social partnership’. We could well be told that, We are all in this crisis together, and that ‘our’ union leaders intend to push for more widely-based ‘worker participation schemes’, so that our concerns can be aired. Remember, the irregular conjugation of the verb ‘to participate’ in government/corporate speak – I participate; you participate; he and she participates; we participate; you participate, but – They decide.

The real importance of trade unions is that they are a key part of working class self-organisation – well, when they are not the playthings of privileged officials, or instruments in the hands of the governments and employers, that is. We can exert no meaningful control over the wider economy and society if we have no effective control over our own organisations. So the strengthening of independent working class organisations is the most pressing task of all in the current crisis. It will be necessary to return to the Broad Left versus Rank and File debate in the SSP.

Socialist unity can not be divorced from ‘internationalism from below’ in these islands

If motions addressing industrial struggle are absent from the Conference agenda, a call for socialist unity has come from Renfrewshire branch. This, however, is largely confined to Scotland, with a nod and a wink to certain developments in England and Wales – such as the Convention of the Left and the RMT initiative. However, the geographical scope of this motion doesn’t cover the full extent of the UK state, which also includes the ‘Six Counties’. Nor does it address the problem of the shared British and Irish governments’ promotion of the ‘Peace Process’ and ‘Devolution-all-round’. Together these policies are designed to maintain the best political framework for the corporations’ profitable operations in these islands. This common ruling class strategy has the backing of the British, Scottish and Welsh TUCs, and the Irish CTU. They are all locked into the ‘social partnerships’, which have turned union leaders into a free personnel management service for the employers.

Since 1992, the ‘Peace Process’, originally pioneered under Major’s government, has enjoyed shared Tory/Labour support. This reflects the widespread British (and Irish) ruling class agreement, in the face of their pressing need to pacify and reassert control over the republican ‘communities of resistance’ in the ‘Six Counties’. The disillusionment with the lack of any real ‘peace dividend’ has contributed to the re-emergence of physical force republicanism, with the killing of two British soldiers and a local PSNI officer by dissident republicans. In the absence of a wider political and social movement, such actions can only lead to further demoralisation and increased state repression.

It had already become clear that ‘British normality’ had not been established in the ‘Six Counties’. Nevertheless, the UK government is now sufficiently in control that current Labour/Tory bipartisan support is fraying, as both parties develop their own strategies to preserve the Union in the face of the wider challenges.

Significantly, the Conservatives and Ulster Unionists have decided to form their own alliance to contest the next UK General Election. This represents the emergence of a new distinct and potentially dangerous Rightist strategy. The UUP is still heavily coloured by Protestant sectarianism, with many members active in the Orange Order. As yet, even after 87 years of the ‘Six County’ statelet and the UUP’s existence, it has not fielded even a single ‘Castle Catholic’ parliamentary candidate. This should be a wake-up call to the SSP, when Conservatives look for support in Scotland for their alliance with the UUP.

In the past, sections of the SSP, still influenced by the Militant’s old Left unionist traditions, were unable to make the distinction between the Irish republican struggle to end political and religious sectarianism, breaking the link with the UK, and the Ulster loyalists’ defence of Protestant privilege and the British Union. This was all dismissed as a ‘war between two tribes’. Gordon Brown’s call for ‘British jobs for British workers’ has been widely condemned for playing into the BNP’s hands. Now that the Conservatives want to give new life to Right Unionism in Scotland, it won’t only be the BNP who are given succour, but those supporters of the even more dangerous loyalist death squads, currently lying low over here.

Real headway has been made in the SSP over adopting a republican socialist strategy to break-up the UK and to end Irish partition, as opposed to a Left nationalist strategy for Scotland only. Nevertheless, the latter notion still enjoys some influential support in our party. The SSP initiated Calton Hill Declaration of October 9th, 2004, and the Republican Socialist Convention held last November 29th, were significant landmarks in the development of socialist republicanism. However, in the face of new reactionary pressures, we will need to stand firm in our commitment to democratic republicanism and to an ‘internationalism from below’ alliance with socialists in Ireland, Wales and England.

Such a strategy will be needed, not only to confront Unionism in all its forms, but to make any meaningful moves towards socialism in these islands. The failure of the ‘Peace Process’ to create ‘British normality’ in the ‘Six Counties’, along with the spectacular demise of the Irish ‘Celtic Tiger’ economic model, now offer socialists a real opportunity to put forward our alternative to both the unionists and the nationalists, if we can clearly see what is at stake.

The SNP retreats – the Republican Socialist Convention shows the way forward

The Republican Socialist Convention also drew the attention of visiting socialist republicans in England, Ireland and Wales to the political significance of the centrepiece policy of the SNP-led Scottish Executive – a referendum on Scotland’s independence. Although the various unionist parties have been quick to see the possible dangers this represents to the future of the UK, there has hardly been any discussion about this amongst the British Left. Their supporters in Scotland have probably put the issue to the very back of their minds, now that the economic crisis has taken the wind out of the SNP’s sails.

The SNP’s ‘independence’ project was based on the backing of key sectors of the Scottish business community, and tied to continued capitalist economic growth, led by a lightly-regulated Scottish-based finance sector. Indeed the Royal Bank of Scotland’s document, Wealth Creation in Scotland, provided the economic underpinning for the SNP’s proposed mild social democratic measures.

Alex Salmond, once keen to be seen in the company of the likes of Sir George Mathewson, now keeps his distance – at least in public. Whether Donald Trump’s proposed new business venture in Aberdeenshire survives the crisis remains to be seen. However, other SNP big business backers such as Brian Souter, Sir Tom Farmer and Donald Macdonald recently demanded to meet Salmond. Soon afterwards, the SNP’s other flagship policy, the abolition of the council tax, was dropped. It probably won’t be long before the independence referendum is abandoned too, in favour of the more ‘realistic’ ‘Devolution-max’ proposals emanating from the British unionists’ Calman Commission, which the SNP once scorned.

The RCN has long predicted that the SNP would fall fully into line with other constitutional nationalist parties, such as the Parti Quebecois, Catalan Convergence, the Basque National Party (PNV) and now ‘New’ Sinn Fein too (after taking ministerial office in her majesty’s Stormont government and voting in the Dail for government bailout of the Irish banks). An SNP, now holding office, will follow these constitutional nationalist parties in opting for gradual political reforms acceptable to the major imperial powers, the global corporations, and in particular, to their respective national business communities. The SNP’s recent, openly declared support for the British monarchy is a clear indicator of the very cautious road they have adopted. It also shows us exactly whose support they are courting.

If the SSP is to make its policy of the break-up of the imperial and unionist UK a reality, this means an end to tail-ending the SNP in such organisations as Independence First and the Scottish Constitutional Convention. These organisations are completely tied to the SNP leadership’s rate of movement – which could very soon be in a reverse direction. The precedent of the successful Calton Hill Declaration, and the new links to Ireland, Wales and England, made through the Republican Socialist Convention, offer the best basis for a campaign of radical constitutional and social change.

There has been general agreement within the SSP that any intervention in an ‘independence referendum’ campaign would be accompanied by clearly articulated economic and social measures, which would point to the type of society that we would want to help create. The fact that a Scottish Executive launched referendum is looking more unlikely does not lessen our need to develop a programme with such policies. Indeed the current crisis of capitalism makes it even more imperative, since it will increase the strains upon the Union.

Two things should be clear though – any calls the SSP makes for government intervention should be coupled with the demand for increased democratic control. Indeed, it is the republican demand for greater democracy, and not the nationalist desire to paint more British unionist institutions tartan, that should inform our campaign for political independence. Secondly, we can’t afford to confine such a campaign to Scotland. The various unionist parties are quite capable of whipping up British chauvinist feeling within the various countries constituting the UK, whilst warning an Irish government, which will be only too keen to comply, to keep its nose out.

The need for wider international contacts and campaigns

The ongoing economic crisis has created divisions amongst the leaders of the EU. We can take some cheer from the massive students and workers’ struggles, which emerged in Greece, and the mass strike action in France. The ‘unofficial’/independentworkers’ occupation at Waterford Glass has also given the trade union bureaucrats such a nasty jolt, that it has even prodded the Irish CTU into action. They called the massive 120,000 strong, Dublin demonstration on February 21st. Significantly, the wildcat actions of those fighting for ‘British jobs for British workers’, has not been seen by the TUC to represent a similar threat. The TUC and STUC remain bogged down in complacent inertia, pleased to hear a few sympathetic remarks from such government ministers as Alan Johnson and Peter Hain.

However, mounting resistance elsewhere will not stop European capitalists from trying to offload the cost of the current crisis on to workers’ shoulders. They are still trying to revive the neo-liberal Lisbon Treaty. Their attempt to browbeat the Irish into overturning their clear ‘No’ vote last year, should be met by an international campaign to back rejection once again. We hope that our Irish comrades in the Irish Socialist Network and Fourthwrite will consider seeking such support.

Unfortunately, the still divided European (and worldwide) Left is a long way from creating the new International we need to properly meet current challenges. This is one reason why the SSP must participate more fully in those wider international initiatives that do exist. To this end, the RCN has brought the formation of the New Anti-Capitalist Party in France, along with the European Anti-Capitalist Alliance (EACA), to the attention of Conference. We also offer a suggestion on how to improve their election platform for the forthcoming Euro-election.

Hopefully, the South Edinburgh SSP motion, which also advocates being part of the joint EACA campaign in the forthcoming Euro-elections, will also be adopted by Conference. Support for such policies would highlight the SSP’s active participation, alongside other European socialists, in promoting international solutions to counter the austerity and war-mongering drives being promoted by European capitalists, and by the Union Jack chauvinists of the BNP, UKIP, the Tories and sections of the Labour Party, as well as showing those SNP supporters committed to genuine independence that this can not be achieved on the coat-tails of the likes of Matthewson, Souter, et al. The purpose of the SSP is not to represent the interests solely of Scottish workers, but to act as an organisation representing all workers living and working in Scotland, whatever their nationality. This can only be achieved successfully in an active international alliance with others.

Despite the depth of the current crisis, capitalism could still yet be given new life, in a more barbaric form, and at the expense of the vast majority of working people. However, we shouldn’t underestimate its capacity, though, to bring about our complete extinction through nuclear war or man-made environmental catastrophe. Only socialists can offer an alternative future for humanity and the Earth. This is the bold challenge the SSP has to face up to at its 2009 Annual Conference.