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	<title>Emancipation &#38; Liberation &#187; Economics</title>
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	<description>Republican Communist Network, a platform in the Scottish Socialist Party</description>
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		<title>New issue of the commune (no. 26)</title>
		<link>http://republicancommunist.org/blog/2011/10/07/new-issue-of-the-commune-no-26/</link>
		<comments>http://republicancommunist.org/blog/2011/10/07/new-issue-of-the-commune-no-26/#comments</comments>
		<pubDate>Fri, 07 Oct 2011 16:12:48 +0000</pubDate>
		<dc:creator>RCN</dc:creator>
				<category><![CDATA[Anti-Cuts]]></category>
		<category><![CDATA[Economics]]></category>

		<guid isPermaLink="false">http://republicancommunist.org/blog/?p=2550</guid>
		<description><![CDATA[the euro in crisis editorial &#8211; opposition and the cuts balls to miliband &#8211; Clifford Biddulph pickets and porkie pies at fujitsu &#8211; Mark Harrison cleaning up the industry &#8211; Siobhan Breatnach sparks fly in electricians’ dispute &#8211; Siobhan Breatnach a weekend camping at dale farm &#8211; Daniel Harvey a state of uncertainty &#8211; Pete [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://thecommune.files.wordpress.com/2011/10/issue26.pdf"><img src="http://republicancommunist.org/blog/wp-content/uploads/2011/10/issue26cover.jpg" alt="" title="The commune issue 26" width="212" height="299" class="alignnone size-full wp-image-2553" /></a></p>
<p>the euro in crisis</p>
<p>editorial &#8211; opposition and the cuts</p>
<p>balls to miliband &#8211; Clifford Biddulph</p>
<p>pickets and porkie pies at fujitsu &#8211; Mark Harrison</p>
<p>cleaning up the industry &#8211; Siobhan Breatnach</p>
<p>sparks fly in electricians’ dispute &#8211; Siobhan Breatnach</p>
<p>a weekend camping at dale farm &#8211; Daniel Harvey</p>
<p>a state of uncertainty &#8211; Pete Jones on the Palestinian bid for statehood at UN</p>
<p>italy &#8211; a very political crisis &#8211; David Broder</p>
<p>the whac-a-mole approach to fixing the euro &#8211; Oisin MacGiollamoir</p>
<p>three myths about the crisis &#8211; Conrad Russell</p>
<p>a beginner’s guide to Marx’s <em>capital</em></p>
<p>life as a ‘chugger’</p>
<p><a href="http://republicancommunist.org/blog/2011/10/03/the-state-murder-of-troy-davis/">the land of the free -Sharon Borthwick</a></p>
]]></content:encoded>
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		</item>
		<item>
		<title>International Resistance To Public Sector Cuts</title>
		<link>http://republicancommunist.org/blog/2011/04/17/international-resistance-to-public-sector-cuts/</link>
		<comments>http://republicancommunist.org/blog/2011/04/17/international-resistance-to-public-sector-cuts/#comments</comments>
		<pubDate>Sun, 17 Apr 2011 15:26:06 +0000</pubDate>
		<dc:creator>RCN</dc:creator>
				<category><![CDATA[Anti-Cuts]]></category>
		<category><![CDATA[Economics]]></category>
		<category><![CDATA[USA]]></category>
		<category><![CDATA[Author: Eric Chester]]></category>
		<category><![CDATA[Author: Susan Dorazio]]></category>
		<category><![CDATA[cuts]]></category>
		<category><![CDATA[fixlinks]]></category>
		<category><![CDATA[public sector cuts]]></category>

		<guid isPermaLink="false">http://republicancommunist.org/blog/?p=1972</guid>
		<description><![CDATA[4 items 1. Resisting public spending cuts, the movement we need, the movement we don&#8217;t  - Emancipation &#38; Liberation no. 20 editorial 2. Holyrood Cuts &#8211; Allan Armstrong 3. Resisting the cuts in Wisconsin &#8211; Eric Chester, Susan Dorazio, Jack Gerson, Socialist Party of the USA 4. The 1% Network &#8211; John O&#8217;Neill, Irish Socialist [...]]]></description>
			<content:encoded><![CDATA[<p><strong>4 items</strong></p>
<p><strong>1. Resisting public spending cuts, the movement we need, the movement we don&#8217;t  - <cite>Emancipation &amp; Liberation</cite> no. 20 editorial </strong></p>
<p><strong>2. Holyrood Cuts &#8211; Allan Armstrong</strong></p>
<p><strong>3. Resisting the cuts in Wisconsin &#8211; Eric Chester, Susan Dorazio, Jack Gerson, Socialist Party of the USA</strong></p>
<p><strong>4. The 1% Network &#8211; John O&#8217;Neill, Irish Socialist Network</strong></p>
<h2>Resisting public spending cuts, the movement we need, the movement we don&#8217;t</h2>
<p><strong>This Editorial from the latest <cite>Emancipation &amp; Liberation</cite> (no. 20) is based on a discussion paper originally drawn up by Ewan Robertson, an <acronym title="Republican Communist Network">RCN</acronym> member and SSP candidate for Aberdeen North in the 2010 Westminster General Election. Ewan is currently in Venezuela. Readers can follow his commentary on <a href="http://theewanrobertsonblog.com/">his blog</a></strong></p>
<h3>Introduction</h3>
<p>The neoliberal austerity agenda of the Con-Dem coalition government, in the form of massive cuts to public spending, has become today’s defining political issue. Physical and ideological resistance to cuts has already begun, including mass rallies and an insurgency among youth and students. However, in building a movement that is able to defeat cuts, a set of key debates are taking place among those who identify themselves as opposed to the government’s cuts agenda. This debate among the anti-cuts movement can be grouped into three points:</p>
<p><strong>(1) Understanding cuts: what do they represent?</strong></p>
<p><strong>(2)Defeating cuts: what kind of movement and strategy?</strong></p>
<p><strong>(3)The Alternative: what alternative political and economic programme should we propose?</strong></p>
<p>For those engaged in the struggle against cuts, it is imperative to think through and debate all of these issues. The movement that emerges to combat cuts and advance an alternative, and the political realignment on the left that may result, could have a significant role in shaping political and social change in Scotland, the UK, and further afield.  Indeed, it is vital that we look to the experiences of struggle, for example, in Greece, Ireland and Iceland, which have been hit much harder, and also from France, which has recently shown significant struggles too. Furthermore, the various ruling classes have shown their readiness to utilise the EU apparatus to impose their austerity drive, nowhere more obviously than Ireland.</p>
<h3>(1) Understanding cuts: what do they represent?</h3>
<p>In participating in building a movement against public spending cuts, it is important to understand and debate with others what they represent. Within the <acronym title="Republican Communist Network">RCN</acronym>, our understanding of cuts and the nature of our opposition to them are intimately connected to our wider politics. It is fairly straightforward to state that the broad majority of the anti-cuts movement would reject the Conservative interpretation of the necessity of the cuts: that they represent public spending being ‘out of control’ or specifically the ‘mess’ of the previous New Labour government that must now be ‘cleaned up’ by the coalition.</p>
<p>The current Con-Dem austerity measures can be understood as having two distinct elements:</p>
<h4>a) Forcing workers to pay for the crisis in capitalism</h4>
<p>The financial sector had run up <q>toxic</q> debts by over-lending in order to profit from low-income household mortgages, particularly in the US, but also in the UK as the Northern Rock collapse highlighted.  When the extent of these un-repayable debts came to light, the resulting “sub-prime loan” and “credit crunch” driven recession beginning in 2008 spread to the wider economy and created the risk of financial institutions collapsing.  To prop up the banks, the UK bought shares in the banks and paid them public cash in return, while the banks wrote off billions of their “toxic” debt. To pay for the capital that they were using to bail out the banks, the UK government issued bonds, which along with reduced taxation revenue due to the economic crisis has created a massive UK debt and concomitant budget deficit.</p>
<p>Thus, the private debt created by capitalism’s insatiable quest for profit has now become public debt. The cuts to public spending and increased taxation in order to balance the budget, in the form of cutting various services and benefits, regressive taxation such as the VAT increase, and privatising remaining state enterprises (i.e. the Royal Mail), therefore represent an attempt to force the working classes to pay for the capitalist crisis, while the wealthy and the bankers continue to accumulate their wealth despite the current recession. Indeed, the process can be understood as a massive redistribution of wealth from the poor to the rich: with increasing poverty and falling standards of living for the majority, and increasing wealth for a tiny minority.</p>
<h4>b) An ideological attack on the remains of welfare provision and collective values</h4>
<p>Along with the cuts being a specific response of capitalism to its own crisis through making workers pay in order to maintain the system, the cuts also represent neoliberal forces using the opportunity of an economic crisis to push their free-market ideological agenda. Concretely this is taking the form of dismantling the remains of the welfare capitalist system, by attacking universal benefits (i.e. child benefit) and state provision in services (such as higher education or postal services). Ideologically, it is an attack on the collective values that underpin the workers’ movement and socialist ideas more generally.</p>
<p>However, it is important to understand that the pro-state sector neo-Keynesianism, peddled by much of the Left, does not represent a socialist response to the neo-liberalism associated with the business leaders of the private sector. The state and the private sectors represent two intimately connected wings of capitalism. Reagan’s ‘assault’ on the state sector in the 1980’s would have left the US private sector severely damaged if it hadn’t been buttressed by the massive state spending associated with ‘Military Keynesianism’, directed against the former USSR.  Similarly today, both the US and UK governments (whether Democrat or New Labour; Republican or Con-Dem) have been quick to resort to ‘Keynesianism for the Bankers’ to prop up private capital, and indeed to save a capitalism in crisis. The capitalists will always use their effective control of state spending to serve their interests. Yes, sometimes they have to make concessions, which may meet some of our needs; but, whenever they find the opportunity, these concessions will be snatched back &#8211; exactly as we have been seeing for the last couple of decades.</p>
<p>Therefore, we cannot interpret these cuts as simply the current government’s ‘bad’ economics in dealing with the economic crisis. The cuts are the mechanism by which capitalism makes workers pay for its periodic crisis and recessions; crises, which are themselves a fundamental reality of the instability of capitalism. During the current crisis, the cuts strategy is occurring across Europe and the wider world. While the Con-Dem government is perhaps the most unrestrained in its attempts to make the working classes pay, all of the pro-capitalist parties in the UK to one extent or another accept the capitalist logic that cuts are necessary and are prepared to implement them.</p>
<p>We have to recognise that what we are experiencing is a historical process whereby the gains made by worker’s and other popular movements over the 20th century are under attack and are being rolled back. Much has changed in the previous century, but the fundamental dynamics of capital have not. As Ed Pickford wrote in the final line of his ever-relevant <cite>The Worker’s Song</cite>, whenever wars or economic crises loom over the horizon, it is never the wealthy but rather the working classes who are “always expected to carry the can.”</p>
<h3>(2) Defeating cuts: what kind of movement and strategy?</h3>
<p>It is important to emphasise to others within the anti-cuts movement that we do not oppose cuts on the basis that they are “too fast” or “too deep”, or because they disproportionately affect one sector (i.e. students vs. claimants or pensioners), or because they are “Tory cuts”. Rather, we believe that we must oppose all the mainstream parties’ austerity drives for the following reasons, some of which have been touched on above:</p>
<ul>
<li>Public spending cuts represent an attempt to make the working classes pay for a crisis in capitalism.</li>
<li>Public spending cuts are an ideological attack on the universal provision of services and benefits, and values of collectivism, solidarity and equality.</li>
<li>Public spending cuts will have a detrimental effect on the majority of people’s quality of life and human development. These effects include: increasing relative (and in many cases absolute) poverty, denial of opportunities, increasing inequality and economic insecurity in society.</li>
<li>Neither the current Con-Dems, nor for that matter, a continued New Labour austerity programme has any genuine democratic basis. The 2010 election proceeded as a carefully managed affair, with the issue of alternatives to spending cuts being largely absent from public debate, and the details of cuts also being withheld. The result is a Con-Dem coalition government with no popular-democratic input or support. This is particularly true in Scotland where recent polling put the combined Lib-Dem and Conservative support at 10%.</li>
</ul>
<p>As participants in the wider anti-cuts movement, the above points distinguish the principled nature of our opposition to their whole austerity programme from those who purport to oppose cuts on grounds of speed or depth, or because of the political party making the cuts (i.e. Tory instead of Labour). However, they also indicate that our opposition to cuts are tied to a fundamentally different worldview and vision of society and the one that has produced both the current crisis and austerity programme. Our communist world-view is rooted in the struggle for universal human emancipation and liberation, characterised by the statements <q>from each according to their means, to each according to their needs” and where “the free development of each is the condition for the free development of all.</q></p>
<p>Highlighting this is important because an integral aspect of the struggle against cuts is the need to articulate and advance an alternative that can deal with the current economic crisis and budget deficit and move towards a society which no longer has the characteristics of the current capitalist society which caused the crisis and cuts in the first place. In developing our own alternative and advancing our values, we can counterpoise capitalism’s cuts with the cuts that we would make. These include the new Trident, military spending on imperial wars, exorbitant interest payments for PFI/PPP contracts, resort to overpaid private consultants and senior managers, and the bankers’ bonuses.</p>
<h3>(3) The Alternative: what alternative political and economic programme  should we propose?</h3>
<p>In the process of building a movement against austerity measures that is <em>able to win</em>, i.e. defeat the government’s program of austerity and dismantling the remains of the welfare provision, questions of organisation, strategy, and political content and aims are being debated. We argue that such a movement must be characterised by: Understanding, Democracy, Organisation from Below, Unity, and Militancy. In debating with the wider anti-cuts movement on these issues, we also have to criticise  strategies which are unlikely to defeat their austerity programme, strategies which are usually not based on a fundamental opposition to their whole austerity programme and what they represent.</p>
<h4>a) The need for understanding:</h4>
<p>The logic that cuts are necessary is accepted by Labour, the SNP, and to some extent the Scottish Greens.</p>
<p>From understanding this social reality, we can see that there are several strategies of resistance to public spending cuts that are <em>not</em> likely to succeed. These include:</p>
<ul>
<li>Attempting to ‘convince’ the Con-Dem government (or just Clegg’s Liberal ‘betrayers in the coalition’) that the ‘moral majority’ of the population oppose cuts, and that the current cuts programme is regressive and unfair, that it could have negative economic effects such as increasing unemployment, and as a result their pace/scale should be slowed.</li>
<li>Following through solely on a strategy of ‘responsible’ mass demonstrations and lobbying/letter-writing organised ‘from above’ (NUS, TUC) to show the scale of opposition to cuts (again, to ‘convince’ the Con-Dem’s that the ‘moral majority’ oppose their unfair and regressive cuts) in the hope of creating a U-turn by the government.</li>
<li>Seeking to replace ‘nasty’ with ‘nice’ elected representatives: the main four parties will either propose or implement spending cuts. In Scotland, even the Scottish Greens accept that cuts are to some extent necessary and are prepared to implement them.</li>
<li>Pursuing purely ‘sectoral’ campaigns, i.e. opposing cuts to higher education instead of all cuts. This allows one group to be played off against another in a ‘divide and rule’ strategy.</li>
</ul>
<p>Accepting this understanding of the cuts and thus what strategies are unlikely to bring the government’s plans into disarray allows us to also outline what type of movement and strategy <em>is</em> needed to defeat cuts.</p>
<h4>b) The need for an international approach</h4>
<p>For those of us fighting the cuts in Scotland, the need for an internationalist viewpoint is evident. The SNP government’s belief in social democratic reforms, financed from a buoyant financial sector, has been blown out the water. Scottish based bankers and other capitalists have been quick to rush into the arms of New Labour and Con-Dem governments at Westminster, either to bail them out, or to coordinate their austerity drive.</p>
<p>However, ruling class ‘internationalism from above’ does not stop at Westminster.  The whole EU bureaucracy is being mobilised to coerce governments in Greece, Portugal, Spain, and particularly in Ireland, to adopt vicious austerity drives, in a similar manner to the IMF structural adjustment programmes imposed on the developing world.</p>
<p>Our answer to the bosses’ ‘internationalism from above’ is working class ‘internationalism from below. We can take inspiration from the struggles of workers in Greece and France, in particular. It remains to be seen, whether the inspiring new movements in North Africa and the Middle East can be duplicated in Europe, or whether they remain the product of particularly repressive political conditions.</p>
<p>Furthermore, it was the actions of students in London, protesting against the imposition of university fees, which has inspired many workers throughout the UK. Indeed, just as Scotland was a beacon of the anti-poll tax protest in 1989, when this tax was imposed here first, so England (and Wales) has produced the possibilities of a wider movement due to the Con-Dem government’s proposals to introduce fees there first.</p>
<h4>c) The need for democracy</h4>
<p>The anti-cuts struggle, both in terms of its internal organisation and in struggling for the kind of society we want to have, has to be radically democratic. For our internal organisations, this means allowing the full creativity and ideas of everyone involved to be expressed and shape the structure, character, aims and strategy of the movement.</p>
<p>The negative effect of denying participatory democratic practices became clear at the launch of the Sheffield anti-cuts campaign, where there was a lack of mechanisms to allow all attendees to influence the agenda, discussion and decisions of the meeting, the result being that “the undemocratic form of the meeting was unable to channel the energy and intelligence of the people in the room.” Instead, the meeting organisers tried to shepherd participants’ efforts into building for an official TUC rally, with a participant from <em>the commune</em> observing that “the politics of this campaign will mobilise people behind the official movement and their campaign for a fairer capitalism, but not a campaign from below to transform capitalism in the fight against the cuts.”</p>
<p>Additionally, a movement that is participatory, where everyone is involved and the ‘base’ maintains control over organisational affairs, is superior than one with a centralised leadership and imposed line because (i) participants’ committment is higher when they have a stake in formulating the goals and strategy of an organisation, and (ii) because a leadership (to the extent that one exists) that is strictly mandated by the ‘base’ cannot have the authority or ability to ‘sell out’.</p>
<p>In terms of the wider anti-cuts movement, the practice of radical and participatory democracy means that both in dealing with the Westminster and Scottish governments, and organisations such as the NUS or TUC/STUC, we need to be wary of the limited democracy provided by periodic electoral representation. Such a system inevitably creates elites and bureaucracies above the movement leaving it open to co-option. To avoid this, mechanisms such as strictly mandated delegates rather than representatives, the ability to recall, and lack of special privileges above other members of an organisation, are necessary. Ultimately, developing participatory democratic forms also form the basis of structures of decision-making and relations between people and communities that would be the foundation of a post-capitalist society.</p>
<h4>d) The need to organise from below</h4>
<p>Connected to the need for radical democracy, is the need for people to be allowed the space to organise autonomously from below. This point is mainly aimed at avoiding the de-moralisation and de-mobilisation that may accompany movements if organisations such as the NUS and TUC try to organise people ‘from above’, setting their own limits of the content and strategy of a campaign, and limiting the militancy, autonomy, and creativity emanating ‘from below’. Rather, we need to encourage people to independently and critically think and act as part of a wider collective movement of equals. We must also guard against any of the capitalist political parties (ie Labour or the SNP) attempting to co-opt the anti-cuts movement, and limiting activity to opposing ‘Tory cuts’ rather than their own cuts programme.</p>
<p>A further pitfall to avoid is the celebrity politics of deferring to the voice and judgment of a celebrity leader’, such as George Galloway. A key strategy to avoid this is to encourage participatory and horizontal forms of organising, rather than leaders from ‘on high’ to come up with the answers and strategies: that is the direction of de-mobilisation, de-moralisation, and defeat. Rather, the anti-cuts movement needs to involve the self-organisation of workers, students, communities who collectively hold the power to shape the movement from below. As Barry Biddulph of <em>the commune</em> has argued, “The aim is not a million strong march but a million organised in their communities and workplaces.”</p>
<h4>e) The need for principled unity</h4>
<p>Different sectors of the population, be it students, trade unionists, pensioners, community campaigns or benefit claimants have to unite on the principle of opposing <em>all</em> cuts. As was emphasised by many students active in the anti-tuition fees increase campaign, and thousands of people around the country, if we allow ourselves to be divided against each other then we will be defeated. We cannot allow ourselves to fight only for our own sector or only against cuts affecting ourselves: <em>to defeat all cuts, all of us must unite against all cuts</em>. As  Aiden Kerr wrote recently in the Scottish Socialist Youth <a href="http://ssy.org.uk/2010/12/the-times-they-are-a-changin/" class="broken_link">blog</a>, “It is in my opinion however that the Scottish youth struggle should not be tied exclusively to education policy.  It should be part of the wider anti-cuts movement and come to the aid of workers on picket lines and strikes.  Imagine what we could do if workers, students and the unemployed united.  No government could cope with a sustained campaign between such large and powerful groups within society.  That startling fact surely would put any possible attack by whoever is in charge in Edinburgh or London into a cold sweat.”</p>
<h4>f) The need for militancy</h4>
<p>Along with being radically democratic, autonomous, and united, a successful anti-cuts movement will need to be militant: the point was made in interviews with Goldsmith’s students conducted by an <acronym title="Republican Communist Network">RCN</acronym> member in December that a government determined to push through a neoliberal austerity agenda is not going to listen to only peaceful (passive) protests, no matter how big they may be. In fact, there is a feeling shared among many that ‘peaceful’ protest has been trivialised by the ruling parties of the British state due to New Labour ignoring mass protests before the invasion of Iraq.</p>
<p>Rather, the anti-cuts movement will need to engage in strategies which involve mass-direct action, strikes, occupations, and civil disobedience. An anti-cuts activist in Aberdeen has argued that, in order to defeat the government, the country would need to be made ungovernable. That is, our strategy to defeat cuts is not to demonstrate that many of us morally oppose what the government is doing by marching along a route pre-set by police before quietly going home again. Nor is it to make enough of a noise that the government is forced to ‘listen’ to us. Rather, we need to be realistic with ourselves that the government is determined to push this agenda through, and will only relent if the cuts agenda is made impossible to implement. This raises wider questions about how best to pressure local councils, the Scottish parliament, and a wider poltitical strategy linked to forcing the government to relent on cuts.</p>
<h4>g) The need for an alternative to capitalism based on human emancipation</h4>
<p>In the fight against cuts, it is becoming clear to more and more people that passive or sectoral resistance is not enough. Nor is simply replacing one set of politicians with another, ‘better’ set.  It is not enough to change who runs the system: we must change the system itself<em>. In fighting against capitalism’s cuts, we need to fight against capitalism itself, and articulate our alternative vision of society</em>: one in which social rights such as universal health and education are not final bastions of welfarism constantly under assault from the logic of capital, but the fundamental and inalienable basis of society. One in which human needs and the bases for personal development are guaranteed to all. One in which people are emancipated from the exploitation of capital, and liberated to reach their full potential, rather than being oppressed by racism, bigotry, and discrimination. Ultimately, to defeat the impetus behind cuts, we need to conquer and transcend the logic of capital with the logic of human development, people not profit, by developing and advocating an emancipatory alternative to capitalism for the 21st century.</p>
<h4>Conclusion: The On-going Strategy Debate and Advancing Communism</h4>
<p>Ultimately, the anti-cuts movement will only have a chance of winning if we have something we are fighting for, as well as against. One of the most important ways we can engage with the wider anti-cuts movement is to help develop that alternative. This means on an open, comradely basis, advancing our arguments on the nature of the spending cuts and their link with capitalist society, and the necessity and desirability of socialist measures to deal with the budget deficit/capitalist crisis, linked to the necessity and desirability of moving towards a communistic society, encapsulated by the slogan “socialism or barbarism”.</p>
<h2>Holyrood Cuts</h2>
<p>The Con-Dem government is cutting back the Westminster block grant to Scotland by over £1 billion. The Holyrood general election will take place on May 5th and the signs are that the SNP will lose out to Labour. Just as in the run-up to last May’s Westminster general election, the governing party here is being very coy about announcing exactly how the full cuts would pan out.</p>
<p>Of course there have already been many cuts, but so far only very piecemeal and partial fightbacks. In the SNP/Lib-Dem controlled Edinburgh Council, the 216 year old Blindcraft workshop for the disabled was closed down in January. The council cultivated division amongst their employees by suggesting moving to a three day week, with no longer term guarantees. Individuals were asked to sign up to this ‘deal’. The able-bodied staff saw this as a method to cut redundancy pay. Many of the disabled staff, with virtually no prospect of future work, felt they had little option but to agree. The 53 employees were divided between three unions, and the council was able to get away with a closure that hit the most disadvantaged workers particularly hard.</p>
<p>However, in SNP-run Renfrewshire, the council has been forced to back down over its proposal to cut back primary school teaching hours by 2.5 hours a week. Parental opposition was made so clear that even the EIS backed the large demonstration outside the council chambers in Paisley on February 17th. Furthermore, the decision of EIS members to vote for strike action (97% for) in a ballot proved decisive in winning this particular victory, although the cuts will, no doubt, be made elsewhere, at the cost of a more vulnerable group.</p>
<p>Local councils in Scotland have taken advantage of long-standing social partnership agreements with trade union leaders. With their cooperation, more and more workers have been appointed, over the years, on a temporary contract basis. This now gives councils the flexibility to terminate these contracts, i.e. sack their workers.  Trade union leaders turn a blind eye, saying they only oppose compulsory redundancies (i.e. amongst permanent staff).</p>
<p>Yet the cuts being demanded over the next few years are so great that, instead of redundancies of permanent staff, Labour councils such as Glasgow, are also proposing massive attacks on existing employees’ conditions and suggesting pay freezes (i.e. big cuts in the light of escalating inflation). This is also bringing the council into conflict with such groups as the teachers. Yet EIS leaders are so deeply tied up in social partnerships that, without massive pressure from below, they will no doubt start to sell-off hard-won conditions. They already have form in this regard.  They allowed the last Tory government to break-up national agreements covering FE colleges. Instead, EIS leaders concentrated all their efforts upon targeting those members who attempted to resist this.</p>
<p>In Glasgow the council has also removed many services from its direct control to ‘independent’ organisations, often run by well-renumerated councillors. When these organisations go on to cut-back services, jobs, pay and conditions, trade union members can not legally ask for support from other council workers, since they are no longer directly employed by the council.  Meanwhile, the councillors involved in running these ‘independent’ organisations continue to do very well financially, with a personal vested interest in making cuts.</p>
<p>The STUC organised a very lacklustre rally against the cuts in the Pavilion Theatre in Glasgow on February 26th entitled ‘Organising for the Better Way’. There were speakers from all the major public sector unions, and even rhetoric from the platform about maintaining public sector unity and refusing to pay for the bankers’ crisis. Yet, although calls went out to support the lively lobby of the Lib-Dems Scottish Conference in Perth on March 5th, primarily in support of the disabled betrayed by the Lib-Dem government ministers; and for a massive representation from Scotland to the TUC-organised demonstration in London on Saturday March 26th, there were no proposals for industrial action beyond that date.</p>
<p>However, interestingly, in marked contrast to previous STUC events, nobody on the platform suggested that voting Labour on May 5th was any solution. Indeed there was no official Labour spokesperson. Tories in Scotland, even by their own admission, are seen as ‘toxic’; but neither is there any great enthusiasm for Labour. Votes for Labour are a sign of desperation. SNP government-promised social democratic reforms have been largely abandoned since the collapse of the Royal Bank and the Bank of Scotland; whilst socialists, who had 6 MSP’s as recently as 2007, remain hopelessly divided after the Sheridan debacle.</p>
<p>There only remains one openly socialist councillor in Scotland, the SSP’s Jim Bollan in the SNP-controlled West Dunbartonshire. He put forward an alternative no cuts budget, baked by local council workers’ unions, tenants and community groups.  It received no support from either the SNP or Labour councillors. Jim had already been suspended as councillor for nine months for his consistent support of workers taking action against the council.</p>
<p>Therefore, at present there is little to be gained from trying to build a campaign around councillors standing up for all the workers and service-users in their areas. Such councillors are scarcer than heatwaves in a Scottish January. Indeed, the pressure is all the other way. Breakaway Solidarity’s one elected councillor, Ruth Brown, defected to Labour in Glasgow, developing a close political relationship with its corrupt former council leader, Steven Purcell.</p>
<p>Some of the more imaginative actions being taken against the cuts have been very much encouraged by the student actions in London last December. Groups such as Citizens United have occupied banks in Glasgow, whilst Uncut has targeted tax-avoiding employers in Aberdeen, Edinburgh and Perth. Students at Glasgow University have been in occupation of the Hetherington building for several weeks, and are using it as an organising centre for wider anti-cuts activity.</p>
<p>Cameron hopes to inflict the kind of defeats upon organised public service workers that Thatcher achieved over industrial workers. However, public sector workers enjoy a closer relationship with their service users, than industrial workers do with consumers. Developing these links will mean breaking out of the political limitations and organisational barriers in existing trade unions.  It will also certainly mean organising independently of those trade union leaders so wedded to social partnership and the maintenance of their own privileges, that all they ever look for is some face-saving deal.</p>
<p>Furthermore, providing people with the confidence to take on the state/employer austerity drive means that socialists need to be involved in showing there is real alternative. This means preparing the ground now for moving beyond reactive defence actions to building a movement based on meeting our real social needs, and showing that this is only possible when our class takes control of the production of goods and the provision of services. Political boldness now will develop an anti-cuts movement with much greater potential in the future.</p>
<p>Allan Armstrong, Republican Communist Network<br />
edited versions of this article have already appeared in <em><a href="http://thecommune.co.uk/2011/03/09/holyrood-and-councils-brandish-the-cuts-knife/">the commune</a></em> and in the new pamphlet from <em><a href="http://www.permanentrevolution.net/entry/3296">Permanent Revolution</a></em></p>
<h2>Resisting The Cuts In Wisconsin</h2>
<p>It&#8217;s Our Turn!  Greece, Spain, Tunisia, Egypt, Libya, and Wisconsin Are Showing the Global Working Class the Way to Revolution</p>
<p>The streets of Europe, North Africa, the Middle East, and the US midwest are filling up with people sick of capitalism and US imperialism.  And the message is clear.  We want grass-roots democracy.  We stand together in revolt against the entrenched power of corrupt governments, unprincipled trade union bureaucrats, and thoroughly compromised politicians.</p>
<p>Our path to replacing global capitalism with worldwide democratic socialism is being forged by the converging actions of many groups and individuals courageously speaking out on a host of interrelated human rights and workers&#8217; rights issues.</p>
<p>Here in Wisconsin, a Republican governor and state legislature have pushed through legislation that will significantly reduce the pay and benefits of public sector workers while, at the same time, attacking the right of these workers to join unions and collectively bargain their wages and benefits.  Democratic legislators sought to block this attack on public sector unions, but were more than ready to accept the pay cuts. Union officials opted to subordinate themselves to the Democratic Party, and thus no serious effort was made to protest the drastic cuts in pensions and health benefits previously won by public sector workers.</p>
<p>As long as unions continue to rely on Democratic Party politicians, we are bound to see further cuts in social services and the pay of public sector workers. The Democrats will continue to demand <q>shared sacrifice</q> &#8212; which means more cuts to public programs, to jobs, and to pay and benefits. The union bureaucrats will continue to say that workers must accept these “economic concessions” because there is no alternative.  But there is an alternative: Tax the Rich! Tax the banks, corporate and private wealth!  No Cuts, No Concessions!</p>
<p>Together, we must stop the war at home.  This can happen only by reversing the attack on the public sector, not only by opposing budget cuts but by putting forward our own program of fully-funded health, education, and social services&#8211; one that goes well beyond the meager services we have today.  In the case of education, we must demand free tuition for care and schooling from infancy through adult education; well paid and well trained staff, guaranteed the right to organize and the right to strike; low student-teacher ratios; maximum class sizes; a full range of course offerings and support services; a safe and healthy environment for staff and students; and worker, student, and community control of centre and school curriculum and management.</p>
<p>It&#8217;s time for public sector workers to take an active role in the global drive for the creation of, and full participation in, truly democratic systems and structures where human rights and social justice for all workers and communities come first.  And time for democratic socialists to reach out to people being side-tracked by complacent and complicit leadership.</p>
<p>We must demand what we deserve!  Through international solidarity and coordinated actions we can create a global movement for democratic socialism based on principles and practices that will bring out the best in us and future generations.<br />
<strong>Eric Chester, Susan Dorazio, Jack Gerson</strong>, Labor Commission members, Socialist Party USA</p>
<h2>The 1% Network</h2>
<p>Ireland is undergoing neo-liberal shock therapy as a result of the Government decision to guarantee the debts run up by speculators in our hyper-inflated housing market that went down the proverbial tubes. The Fianna Fail government, now in its death throes, embarked on pay cuts and reductions in the public sector as its principal strategy for getting out of the mess. It has cut the pay of the 300,000-strong public sector workforce, reduced the minimum wage by €1 per hour and reduced all social welfare payments, pandering to their pals from the Irish Business and Employers Confederation (IBEC) who demand a 10 percent reduction in pay for all workers (except themselves!), and the retention of our low corporation tax rate, their ‘holy grail’ of economic recovery.</p>
<p>The game plan is clear to all on the left: by inflicting a major defeat on the public sector, where the vast bulk of unionised workers are concentrated, the state and employers hope to launch a new and devastating series of severe wage cuts which it is claimed will increase Ireland’s competitiveness. Translated for workers this means working for less pay, paying more tax, with the introduction of a plethora ‘non income’ taxes like water charges, tolled roads, etc. They display not the slightest shame when a comparison is made between these cuts and their bailout of the banks. In 2009 about €13 billion of public (workers’) money was spent propping up Ireland’s banking system. This is equivalent to the total amount spent on the Irish health service for a whole year.</p>
<p>Back in 2007, the Bank of Ireland’s ‘Wealth of the Nation’ report revealed that 1% of the population owned 34% of the wealth. In October of 2010, Cork Institute of Technology lecturer Tom O’Connor analysed what has happened to this wealth. His figures showed that the total ‘net worth’ (excluding the value of their principal residences and allowing for any borrowings) of the 33,000 Irish millionaires is still a massive €121billion. This fact has largely been ignored by our media who have decided almost unanimously to advance the Fianna Fail/Green Party mantra that we are all collectively responsible for the ‘economic crisis’; therefore all will have to pay for our supposed over-indulgence and that a wealth tax would be counter-productive as ‘high earners’ are already paying proportionally more than everyone else.</p>
<p>The 1% network is a coalition of socialist groups which came together to oppose the cut-back agenda of the government and to promote a socialist alternative to the current socio-economic system. The name of the coalition was chosen to highlight the fact that just 1% of the population control in excess of 34% of the wealth of the nation. Organisations within the coalition include éirígí, Workers Solidarity Movement, Revolutionary Anarcha-Feminist Group, Seomra Spraoi collective and the Irish Socialist Network along with individual activists. The 1% Network is mindful that the immediate beneficiary of Fianna Fáil’s decline is an even more right-wing rival Fine Gael, who will implement a vicious neo-liberal agenda destroying any remnants of the public sector and the trade union movement – with the support of the Irish Labour Party who will probably be the junior partner in the next administration.</p>
<p>The 1% Network is a democratic forum. Organising and planning activities, press statements, all decision making is made at meetings open to all. Although some organisations have activists at meetings they don’t attempt to dominate them, preferring to have collective agreement from all. This is an important aspect of the Network which encourages greater involvement of progressive individuals who are not aligned to any particular organisation.</p>
<p>The 1% network is driven by the belief that it is clearly both wrong and corrupt that a small number of people should hold onto such vast wealth while the majority of people face savage attacks on our living standards and on our public services. More importantly, this concentration of wealth in a tiny number of hands means that political power is also concentrated in the hands of this elite. The Network exists to highlight the fact that Government and opposition solutions to the capitalist economic crisis are deeply unequal – for instance a 5% cut to social welfare payments isn’t the same as a 5% cut in pay for someone earning €150,000 per annum no matter how much media spin is put on it. The Network wants to promote the fact that capitalism is the cause of our economic woes and capitalists should be both held accountable and made to pay for their crisis. It also wants to instigate a discussion on how to re-shape and build a new society based on equality and real democracy, to find a way to take political power away from the wealthy elite.</p>
<p>Since its inception the 1% network has carried out a number of activities including a educational walking tour of the private mansions, corporate headquarters, secret meeting spots and private banks of the business elite. The trip through Dublin’s Georgian and business districts included stops outside the townhouses of Dermot Desmond, Johnny Ronan and Sir Tony O’Reilly, as well as sites linked with gross inequality or the state’s economic collapse. They also organised a well-attended protest focusing on zombie banks at Hallowe’en.</p>
<p>Gregor Kerr, one of the founding members of the 1% Network said on the walking tour that there was a concerted attempt to pretend that wealth didn’t exist anymore, but the tour was designed to disprove this<em>. “The reality is that not everyone is sharing the pain. Those most responsible for this crisis are escaping relatively unscathed,”</em> he said. The network wants to make the 1% of the rich pay for the crisis: we are not content to demand &#8216;fairer&#8217; cuts for the working-class majority. When the Irish Congress of Trade Unions called a national demonstration on 27th November 2010 in Dublin, the 1% Network decided to become active in promoting and participating in it despite the fact that the ICTU leadership called the march on the basis of &#8216;fairer&#8217; cuts and a return to the disastrous policy of ‘Social Partnership&#8217;. Unfortunately the current Trade Union leadership, with some notable exceptions, have accepted the government’s cuts agenda and are limiting their activities to campaigning for the cuts to be implemented over a longer period of time.</p>
<p>The 1% network took part in the demonstration &#8211; not to support the demands of the ICTU leadership, but to outline an alternative, not in the expectation that the ICTU leadership would be convinced but because we want to make the argument to the thousands of workers who took part that it is up to all of us to organise what is needed, a general strike against Government austerity measures that are being imposed without any mandate from the Irish people. The 1% network had the slogan &#8216;The 1% have the Wealth &#8211; We have to take the Power’. The Network argued for the Trade Union movement to instigate a grassroots resistance to the cuts in workplaces and community associations, to begin to build a strong, united campaign and to begin the process of working towards that general strike.</p>
<p>The union bureaucracy, which is joined at the hip to the Labour Party, is scared stiff of the movement that is welling up beneath it. During their ongoing negotiations with the Government on alternative ways of cutting the public sector budget, they suggested they could offer “more for less”, and were willing to trade up to 15,000 public sector redundancies and ‘worker flexibility’ if pay cuts were withdrawn. The union bureaucracy even offered to give up over-time rates in hospitals by allowing its members to be rostered to work anytime from 8am to 8pm. But even after they had got on their knees, the Fianna Fáil-Green government arrogantly replied “Not nearly enough”.</p>
<p>This rebuff has signalled the death of social partnership and means that the union leaders are now under the spotlight as many ask: will they lead a fight? Up to now they are showing extreme reluctance to do so. They are reeling from the collapse of a cosy 22-year relationship with the State and are desperate to avoid a strategy of national stoppages to drive a deeply unpopular government out of office. The 1% Network is trying to raise consciousness amongst the working class that Capitalism is the cause and socialism is the cure, and that Tweedledum (Fianna Fail) being replaced by Tweedledee (Fine Gael) will only further erode workers’ living standards and increase the wealth of the exploiting class.</p>
<p>This article is by John O’Neill of the Irish Socialist Network. It appears in the current issue of <cite>Emancipation &amp; Liberation</cite> (no. 20) where it is wrongly attributed (our apologies to John).</p>
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		<title>‘Celtic Tigers’ And ‘Celtic Lions’ Both Pussycats For Big Business</title>
		<link>http://republicancommunist.org/blog/2008/10/14/%e2%80%98celtic-tigers%e2%80%99-and-%e2%80%98celtic-lions%e2%80%99-both-pussycats-for-big-business/</link>
		<comments>http://republicancommunist.org/blog/2008/10/14/%e2%80%98celtic-tigers%e2%80%99-and-%e2%80%98celtic-lions%e2%80%99-both-pussycats-for-big-business/#comments</comments>
		<pubDate>Tue, 14 Oct 2008 19:18:15 +0000</pubDate>
		<dc:creator>RCN</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[Emancipation & Liberation]]></category>
		<category><![CDATA[Issue 16]]></category>
		<category><![CDATA[Scotland]]></category>
		<category><![CDATA[Author: Allan Armstrong]]></category>

		<guid isPermaLink="false">http://republicancommunist.org/blog/?p=585</guid>
		<description><![CDATA[I have come to Dublin to set our aspirations for Scotland’s future. Alex Salmond, speaking at Trinity College, Dublin, 13.2.2008 There two official economic visions currently being offered to the electorates of these islands. The first has been promoted by Blair, Brown and New Labour. Their British imperial vision involves bowing and scraping before the [...]]]></description>
			<content:encoded><![CDATA[<blockquote><p>I have come to Dublin to set our aspirations for Scotland’s future.<br />
Alex Salmond, speaking at Trinity College, Dublin, 13.2.2008</p></blockquote>
<p>There two official economic visions currently being offered to the electorates of these islands. The first has been promoted by Blair, Brown and New Labour. Their British imperial vision involves bowing and scraping before the rich and powerful, and subordination to the interests of big business, whilst flying the union jack.</p>
<p>The second vision initially had a more limited appeal – to the electorate of the 26 counties of the Irish Republic. Successive Fianna Fail governments have bowed and scraped before the rich and powerful, and have subordinated themselves to the interests of big business, whilst flying the Irish tricolour. This ‘alternative’ vision has been labelled the ‘Celtic Tiger’.</p>
<p>The night before St. Valentine’s Day, Alex Salmond declared his love for the ‘Celtic Tiger’, when he made a keynote speech to politicians, businessmen and union leaders, at Trinity College, Dublin. Only in Scotland’s case this vision is to be marketed as the ‘Celtic Lion’, and is to be labelled with a saltire. Salmond hopes to build a wider alliance, bringing in the new administrations in Wales and Northern Ireland, to promote a common front of ‘Celtic Tigers’, ‘Lions’ ‘Dragons’, and perhaps, ‘Red Hands’, against the beleaguered British New Labour vision, now clouding over after the collapse of Northern Rock.</p>
<p>So, what can we expect in Scotland, if we go down Salmond’s ‘Celtic Tiger’ road? Scotland’s right wing Policy Institute has highlighted what it sees as the key policies in Ireland’s economic success story. Ever since the launching of the 1987 National Economic Plan, Irish governments have pursued a policy of slashing corporate taxes, so that they now lie at 12%. It has very low inheritance tax. It has encouraged a huge speculative property boom, mightily helped by some of the loosest planning regulations to be found anywhere. New infrastructure projects are done under <acronym title="Private Finance Initiative">PFI</acronym> schemes. In other words, Irish governments do whatever big business wants. A series of corruption charges, going to the very highest levels of the Irish government, have underlined this.</p>
<p>A key feature of this pattern of development has been the neglect of social investment in housing, education and health. The private sector has been given responsibility for dealing with this and, as usual, is highly selective in its approach. Increasing swathes of society are left trapped in poor quality peripheral housing schemes. The labour shortfall is made up by importing migrant labour, forced to live on low wages in sub-standard, overcrowded accommodation.</p>
<h3>Poor shape</h3>
<p>A decade ago, Ireland’s outdated physical infrastructure was in a very poor shape. Now, with business interests demanding change, new motorways are being rapidly built. This is being done with total disregard for Ireland’s historical heritage, particularly in the case of the new M3 near the ancient Celtic site of Tara. The Irish government now allows National Monuments to be destroyed, if they interfere with the plans of big business. Where people need new infrastructure, however, there is no such haste, as the scandal of Galway’s contaminated public water supply has highlighted.</p>
<p>However, perhaps the starkest example of the ‘Celtic Tiger’s subordination to big business, has been Shell’s development of the Corrib gasfield, located off the coast of north Mayo. Ray Burke, former Minister of Communication and Energy, now facing corruption charges, made the following deal, when in office. The Irish state undertook to pay Shell’s exploration and development costs. Shell would pay no royalties to the Irish government. Shell was given executive powers to undertake compulsory access and purchase orders for the land it wanted at Rossport to build a new refinery. Irish citizens became, in effect, Shell’s corporate subjects.</p>
<div class="wp-caption alignnone" style="width: 610px"><img alt="A North Mayo mural of Ken Saro-Wiwia, campaigner against Shell, executed by Nigerian government." src="http://www.republicancommunist.org/i/EL016/DT3.jpg" title="A North Mayo mural of Ken Saro-Wiwia, campaigner against Shell, executed by Nigerian government." width="600" height="400" /><p class="wp-caption-text">A North Mayo mural pf Ken Saro-Wiwia, campaigner against Shell, executed by Nigerian government.</p></div>
<p>Mike Cunningham, former director of the Irish Statoil, said that, <q>No country in the world gives as favourable terms to the oil companies as Ireland</q>. The World Bank considered Ireland to be a softer touch than even Nigeria. It was here that Shell had brought about devastation to the Niger Delta lands occupied by the Ogoni people. Ken Saro-Wiwa, the Ogoni’s best-known public advocate, was executed by the Nigerian military government in 1995.</p>
<p>In 2005, the Rossport Five were imprisoned for 94 days by the Irish government, at the behest of Shell. They had protested against Shell’s proposed seizure of their land in Mayo, and the construction of a dangerous high pressure gas pipeline, near to their homes and community. They were only released after massive protests. Nevertheless, Shell got their way and are proceeding to build an onshore refinery, against the wishes of the local community, who campaigned for one built offshore – ‘Shell to Sea’.</p>
<div class="wp-caption alignnone" style="width: 298px"><img alt="Hey Mac - just do as youre told!" src="http://www.republicancommunist.org/i/EL016/DT1.jpg" title="Hey Mac - just do as youre told!" width="288" height="430" /><p class="wp-caption-text">Hey Mac - just do as you&#39;re told!</p></div>
<p>Policy Scotland and Scotsman writer, Bill Jamieson, made the following observation, when comparing Ireland and Scotland. <q>The loose planning system… is in marked contrast to attitudes in Scotland. The planning regime is much stricter</q>. Well, that is until the <acronym title="United States">US</acronym> property tycoon, Donald Trump, made his demands. Then, the <acronym title="Scottish National Party">SNP</acronym> administration, and fawning local media, went into hyper drive to bulldoze local objections to Trump’s proposed development of the environmentally sensitive, Balmedie Beach, on the Aberdeenshire coast.</p>
<p>Trump wants to build 2 championship golf courses, a 5 star luxury hotel, 1000 holiday homes, and 36 luxury villas. He even has the nerve to invoke his one-time, croft dwelling, Lewis mother, as an inspiration for a development that will amount to a new ‘clearance’, as far as public access goes. ‘Mactrump Towers’ has all the hallmarks of yet another exclusive gated development for the very rich. Trump has also pushed for the cancellation of the proposed offshore wind farm, important for the development of renewable energy. It might offend his ‘guests’. And, just like Ireland’s National Monuments, so Scotland’s Special Sites of Scientific Interest, may well prove expendable too, if Trump gets the final go-ahead.</p>
<p>Of course, Jack McConnell, when he was Scottish First Minister, personally lobbied Donald Trump in New York. Under the new <acronym title="Scottish National Party">SNP</acronym> administration, any ‘McTrump Towers’ reception centre may have to fly the saltire instead of the union jack. But whether its New Labour, <acronym title="Scottish National Party">SNP</acronym>, or Fianna Fail, ‘It’s business as usual’.</p>
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		<title>Parecon: Participatory Economics and Socialism for the 21st Century</title>
		<link>http://republicancommunist.org/blog/2007/03/13/parecon-participatory-economics-and-socialism-for-the-21st-century/</link>
		<comments>http://republicancommunist.org/blog/2007/03/13/parecon-participatory-economics-and-socialism-for-the-21st-century/#comments</comments>
		<pubDate>Tue, 13 Mar 2007 19:17:05 +0000</pubDate>
		<dc:creator>RCN</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[Emancipation & Liberation]]></category>
		<category><![CDATA[Issue 14]]></category>
		<category><![CDATA[Author: Neil Bennett]]></category>

		<guid isPermaLink="false">http://republicancommunist.org/blog/?p=20</guid>
		<description><![CDATA[by Neil Bennet What do you want? It’s a question that we, as revolutionary socialists (or communists) face more often than any other when talking about our politics. We are more than happy to tell people what we are against – war, exploitation, suffering, injustice…but more often than not, when it comes to telling people [...]]]></description>
			<content:encoded><![CDATA[<h2>by Neil Bennet</h2>
<h3>What do you want?</h3>
<p>It’s a question that we, as revolutionary socialists (or communists) face more often than any other when talking about our politics. We are more than happy to tell people what we are against – war, exploitation, suffering, injustice…but more often than not, when it comes to telling people exactly what it is we stand for, our answers fall short.</p>
<p>We might point out, for example that we stand for real socialism, for a democratic socialism – and contrast this with what was called ‘socialism’ or ‘communism’ in the Soviet Union, for the propaganda purposes of both sides of the Cold War.</p>
<p>But what does this really mean?</p>
<p>None of the phrases we might use goes into much detail about what an alternative to capitalism, a ‘socialist’ or ‘communist’ economy, might look like. What do we imagine the structures of such an economy to be? And how will it function?</p>
<p>These are questions that the socialist movement, and even the broader global anti-capitalist movement cannot leave unanswered. Sure we can make powerful and legitimate demands – from shutting down the <acronym title="World Trade Organisation">WTO</acronym> and stopping climate change to scrapping the council tax and getting free school meals. But without an economic vision, our campaigning will lack structure and direction, and we will struggle to convince more people to join us in the fight if we cannot articulate more clearly what it is we are fighting for.</p>
<h3>An economic vision</h3>
<p>As a starting point for exploring the question of what socialism might look like, it is important to discuss what an economy is, and what features characterise the different possible forms one might take.</p>
<p>The primary functions of any economy are the production, allocation and consumption of goods and services. Historically the most important division for socialists has been concerning ownership – that is who owns the means of production. However other things can influence class relationships in an economy just as powerfully, and must be considered when proposing a <q>good economy</q> or socialist economic model. But first let’s look at the basic differences between economic systems.</p>
<p>The two defining features of capitalism are the private ownership of the means of production (utilised for profit) and a market allocation system – that is a system where buyers and sellers attempt to maximise their own advantage at the expense of the other. There are many other features which flow from these, such as massive hierarchies of wealth and power, wage slavery and remuneration (payment) according to output and bargaining power. However ownership and market allocation are the aspects that define an economy as ‘capitalist’ in the commonly understood sense, so let’s stick with those.</p>
<p>So what other models have existed in the past? The most obvious answer is the command economy that existed in the former Soviet Union and Eastern Block countries. What had changed in these places that differentiated them from capitalism? Well ownership has certainly changed – in place of private capitalists we have an authoritarian state. And market allocation no longer exists, having been replaced with central planning performed by the state bureaucracy. But which of the injustices of capitalism does this actually resolve? Jobs still exist in a hierarchy – with people at the top having greater access to wealth and power, compared to those at the bottom. Some people are still forced into demeaning work for little reward, while other use power to gain privilege, and privilege to gather yet more power. In fact by concentrating power in ever fewer hands, command economies create new horrors, distinct but comparable to those inherent in capitalism.</p>
<p>What about ‘market socialism’? In this model (such as could have said to have been attempted in Tito’s Yugoslavia) ownership is distinct from capitalism, the means of production either being owned by the state, or by workers collectively. However the market allocation remains, the <q>profits</q> ostensibly shared amongst the workforce. So the question arises – do markets themselves have a negative impact on the people in an economy, or are they only so destructive when combined with private ownership? I think the answer becomes obvious if we again look at the defining features of a market – that is selfishly motivated buyers and sellers, prices determined by competition, profit and surplus maximisation and remuneration according to output and bargaining power – again necessitating hierarchical corporate divisions of labour.</p>
<p>So we have reached a crossroads.</p>
<p>We understand that no current or historical economic model achieves what we want to achieve. So what model can? Well first we have to consider what it is exactly that we want from our economic system.</p>
<h3>An economy of values</h3>
<p>What do we want our economy to do? We know we want it to produce, allocate and consume things, and we know we want to avoid the destructive and unjust qualities of other systems. So what values should our economy promote? Advocates of Parecon (or participatory economics) suggest they should be the same values we hold as important: equity, diversity, solidarity, and participatory self management. The last of those values is of fundamental importance, and is reflective of what should be meant when we talk of <q>democratic</q> socialism – that is that decisions should be made democratically by people <strong>in proportion to how much they are affected by those decisions</strong>.</p>
<h3>Parecon overview</h3>
<p>What are the important questions we have to answer when proposing a new economic model? What areas merit our attention when deciding on the institutions our model needs? The points highlighted below should be of primary concern:</p>
<ul>
<li>how people should be remunerated (paid)</li>
<li>how workplaces should be organised</li>
<li>how decision-making should take place</li>
<li>how we can settle on what is produced and consumed</li>
</ul>
<h3>Remuneration due to effort and sacrifice</h3>
<p>How do we define a just form of economic remuneration? Marx wrote <q>From each according to ability: to each according to need</q>. But is that an accurate picture of a just economy? And is it a realistic one?</p>
<p>I would suggest that it is not – that it is utopian and fails to take into account a concept of just rewards – making it wholly unworkable. What then are the alternative norms of remuneration we could consider? The forms that exist currently are mixed, and dependent on many variables. Income can be determined by output (i.e. the productive output of you as an individual), by bargaining power, by some natural advantage (perhaps you a smarter or stronger than I am), or often simply by luck. Under capitalism greed and cunning are also useful attributes in maximising your income.</p>
<p>However none of these could be said to just. There is no moral reason why someone should have more money because they were born into a rich family, happened to have a particularly useful skill, or worse because they lacked compassion for their fellow human beings.</p>
<p>The only just way for workers to be remunerated in an economy is according to effort and sacrifice.</p>
<p>In other words it is not economic output that should be measured in a just socialist economy, but the amount of work someone puts in – that is how hard they work and for how many hours. Who can determine how much effort and sacrifice is expended? Peers in the same workplace would presumably be better able the mos to determine such a thing. What’s more, in an optimal economy, effort and sacrifice would tend towards an average – meaning most people would be remunerated to a similar degree, variation occurring mostly in number of hours worked. But more on this later.</p>
<p>But let’s go back to Marx’s catch-all phrase first. There is something I’ve neglected to account for above. There will of course in any economy be those unable to work – be they too old, in hospital, incapacitated etc. Here Marx’s phrase comes into some relevance, as there are those with need but without ability. According to Parecon, those unable to work (and those between jobs) should be remunerated according to social averages. That is they should be paid as if doing the ‘average’ amount of work in an economy – that way neither gaining significantly nor losing out significantly from being unable to work. Of course medical treatment etc should be considered a social cost and underwritten by all.</p>
<h3>Balanced job complexes</h3>
<p>Orthodox Marxist theory defines two social classes – the capitalist class (who own the means of production) and the working class (who sell their labour to the capitalists). In other words the class system is solely down to ownership of the means of production. Sure there are other sub-classes described, but that is the basic model as understood by most.</p>
<p>Advocates of Parecon see things differently. Ask any regular worker about their job, and what pisses them off about it, what do you think they will say? Will they name some remote venture capitalist, or board of investors?</p>
<p>Or will they tell you how their boss treats them like shit?</p>
<p>Pareconists define three broad economic classes. As well as the capitalists and the majority working class, there is a third class situated between the two know as the ‘coordinator’ class. These coordinators include managers, professionals, doctors, lawyers, academics. They have a large degree of empowerment in their workplace, are often in charge of others  and usually receive far greater levels of income than the majority working class. They have their own class interest – acting (like the working class) for greater gains and concessions from the capitalists, but at the same time trying to maintain their position of privilege and power over the majority working class.</p>
<p>Economists estimate the coordinator class to compose around 20% of the working population in developed countries such as in Western Europe and the <acronym title="United States of America">USA</acronym>.</p>
<p>It is this class of people that – with the absence of the capitalists – came to power in the Soviet Union.</p>
<p>And while we continue to allow this class division to exist, we will never achieve true equality of circumstance. Workplace hierarchies are an anathema to equity and diversity, and so have no place in a socialist economy.</p>
<p>So what is the answer? If we are to rid ourselves of the capitalist divisions of labour, what are we to replace them with? Parecon’s answer is the ‘balanced job complex’.</p>
<p>Put simply our demand is that everyone should do their fair share empowering, interesting work, and their fair share rote, boring, or unpleasant tasks. As we have already decided on remuneration according to effort and sacrifice, if we were to maintain capitalist labour divisions, people doing crappy jobs would be paid more for their extra sacrifice. This would be just, but would undermine equity. Similarly those doing more empowering jobs would be more able to take part in decision making, meaning others would be overpowered and lose all relative influence. This would undermine self-management and democracy.</p>
<p>If however peoples work is balanced into a variety of empowering and rote tasks, so that everyone’s job is more or less equal (though all very different), we re-enforce all the values we seek to promote.</p>
<p>Of course certain workplaces will sometimes have more or less empowering tasks than the social average. In these circumstances individual workers will have to spend some of their working week (or month, or quarter etc) in another workplace, in order to balance their complex.</p>
<h3>Workplace decision-making</h3>
<p>At the moment in capitalist workplaces, with corporate hierarchies, decision making is concentrated in the hands of the few. At the top level the capitalists decide where to invest their money. Below that decision making powers are monopolised by high-level management – whose decisions are influenced less by the needs of the workers or consumers, but more by the need for company profit and their own power within the organisation.</p>
<p>In a parecon workplace – where as we have established all workers will be paid according to effort and sacrifice for doing more-or-less balanced job complexes – decisions will be made by the whole workforce. But not by some abstract mechanism of majority rule. Rather each individual worker will have a say relevant to how each decision affects him or her. So if we are deciding which colour to paint your office, only you have the power to influence that decision, as only you are affected by it to any large extent (presuming you don’t share the office, and you don’t choose extravagantly expensive paint!). If however a decision affects a whole team – such as hiring a new colleague – then that decision must be made by the team as a whole, using norms they themselves have agreed upon. This system of democratic decision-making would form part of a working day, and would be paid for as such.</p>
<p>Larger scale decisions – such as on workload, productive outputs etc – for whole workplaces or even whole industries would be conducted by democratic councils of workers, with each group or department sending a delegate. Delegates would of course be immediately recallable and all decision-making and background information available to all. This brings us neatly onto the process itself.</p>
<h3>Participatory planning</h3>
<p>Readers may be familiar with the participatory budgeting, as practised by some Workers Party controlled local authorities in Brazil, such as in Porto Alegre. In these projects the limited local budget is controlled directly by delegated popular assemblies – an example of a community taking control of public spending and deciding its own priorities. This could be described as a form of participatory planning, only limited to social consumption. In a parecon, we would apply a similar model to the whole of the economy, for both production and consumption.</p>
<p>Participatory planning is the form of allocation system we describe as an alternative to markets and the central planning of the command economies. The main process is that of council democracy – both of workers in a workplace or industry, and of consumers in a community. The reasons for this are quite simple – every worker is also a consumer – that is they have two specific relationships within the economy. If we want a democratic economy we have to democratise both these relationships.</p>
<p>So how does the participatory economy settle on what is to be produced and consumed in any given time?</p>
<p>At the start of each planning period (say a year) every individual makes a proposal of how much they want to work, and how much they want to consume. This is easier than it sounds – last years production and consumption information will be available, so any changes can be considered relative to this. These proposals are taken to workplace and community councils and combined into joint proposals. These proposals are delegated to higher level councils and federations of councils, until at the end of the first round of planning there are full production and consumption proposals for the whole economy.</p>
<p>Now after this first round, it is quite likely that consumption proposals and production proposals do not match. These initial proposals are submitted to what are known as Iteration Facilitation Boards (<acronym title="Iteration Facilitation Boards">IFBs</acronym>). These would process the submissions, generating <q>indicative prices</q> based on the value of social inputs needed to produce different products and services. Based on these values, as well as all available qualitative information, people reassess there proposals and come up with new ones. This is repeated several times (i.e. iteratively) until consumption and production proposals are reasonably close, and a workable plan is created.</p>
<p>It should be made clear that the <acronym title="Iteration Facilitation Boards">IFBs</acronym> hold no economic power – they will simply be making calculations based on various data and socially agreed algorithms. In fact most of the process could be automated. To the extent that work has to be done, the <acronym title="Iteration Facilitation Boards">IFBs</acronym> would be a workplace like any other and subject to the same conditions of remuneration and balanced job complexes. If there was still any concern over the possibility of <acronym title="Iteration Facilitation Board">IFBs</acronym> employees gaining some undue economic influence, the positions could be rotated amongst many individuals. However this would be exceedingly cautious.</p>
<h3>Socialism for the 21st century?</h3>
<p>Described above are the basic attributes of the parecon model of a democratic socialist or communist economy. I hope from this introduction that I have at the very least convinced you of the need for economic vision. I hope too that you might consider that some of the arguments for participatory economics make sense, and that you might be interested enough to explore these ideas further.</p>
<p>If so, I suggest you visit the <a href="http://web.archive.org/web/20080211041349/http://www.parecon.org/index.html">website</a>, or read some of the many books and articles on the subject by Michael Albert and Robin Hahnel – the principal proponents of Parecon. immediately recallable and all decision-making and background information available to all. This brings us neatly onto the process itself.</p>
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		<title>The Euro Referendum: The case for an active boycott</title>
		<link>http://republicancommunist.org/blog/2002/07/25/the-euro-referendum-the-case-for-an-active-boycott/</link>
		<comments>http://republicancommunist.org/blog/2002/07/25/the-euro-referendum-the-case-for-an-active-boycott/#comments</comments>
		<pubDate>Thu, 25 Jul 2002 21:06:52 +0000</pubDate>
		<dc:creator>RCN</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[Ireland]]></category>
		<category><![CDATA[Issue 02]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Allan Green]]></category>
		<category><![CDATA[Author: Allan Armstrong]]></category>
		<category><![CDATA[Aznar]]></category>
		<category><![CDATA[Berlusconi]]></category>
		<category><![CDATA[Blair]]></category>
		<category><![CDATA[BNP]]></category>
		<category><![CDATA[Boycott]]></category>
		<category><![CDATA[Chirac]]></category>
		<category><![CDATA[CWI]]></category>
		<category><![CDATA[Denmark]]></category>
		<category><![CDATA[Euro]]></category>
		<category><![CDATA[Hugh Kerr]]></category>
		<category><![CDATA[Jospin]]></category>
		<category><![CDATA[March on Paris]]></category>
		<category><![CDATA[Red-Green Alliance]]></category>
		<category><![CDATA[Rifondazione Communista]]></category>
		<category><![CDATA[SSP]]></category>
		<category><![CDATA[SWP]]></category>

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		<description><![CDATA[Allan Armstrong why workers should support an active boycott of the Euro referendum The rise of the populist and fascist Right in Europe The rise of the populist and fascist Right in the Netherlands, France and England has caused considerable debate amongst the Left throughout Europe. We cannot be complacent in Scotland, just because the [...]]]></description>
			<content:encoded><![CDATA[<h2>Allan Armstrong why workers should support an active boycott of the Euro referendum</h2>
<h3>The rise of the populist and fascist Right in Europe</h3>
<p>The rise of the populist and fascist Right in the Netherlands, France and England has caused considerable debate amongst the Left throughout Europe. We cannot be complacent in Scotland, just because the far Right is a negligible force here at present. Racism, sectarianism and both British and Scottish nationalism have deep roots in Scottish society, providing combustible material for far Right parties if circumstances permit, or if the Left provides them with the opportunity.</p>
<p>One issue which unites all the Right populist and fascist parties in Europe is opposition to the euro currency. All moves towards greater European integration are anathema to parties whose prime purpose is to promote a single national culture backed by a strong national state. Much of the initial support for the far Right comes from traditional conservatives nostalgically looking back to the glories of their states imperialist past. However, whether it be in Rotterdam, Marseilles, the former Red Belt of Paris, or Burnley and Oldham, the far Right has managed to extend its support to working class areas which traditionally gave their vote to social democratic and Labour or even to Communist Parties.</p>
<p>One reason for this is that the far Right parties increasingly address the concerns of workers – the decline of traditional industries, the decay of public housing, the rundown of local schools and community facilities. These were once the concerns of social democratic and Labour parties too. However, both continental social democrats and, in particular New Labour, now openly declare that the only way that such issues can be dealt with is by bowing to the needs of the global corporations and handing public welfare over to private companies. Meeting genuine human needs is a very low priority for the fast-buck, profit seekers of turbo-capitalism. Therefore, not surprisingly, support for the Labour Party is evaporating in its former strongholds. This is where the far Right hopes to make its biggest gains.</p>
<p>The current worldwide anti globalisation movement still remains most strongly associated in the public&#8217;s mind with anarchists, left populists and socialists. However, we are now seeing the spectacle of the far Right opposing globalisation by defending traditional national state welfare measures once associated with the social democratic and <q>official</q> Communist Left. Once this common ground with the traditional Left has gained the far Right a working class audience, they then promote their own distinct theories and policies.</p>
<p>To the far Right, those promoting globalisation are seen as an alien and evil conspiratorial elite. Global <q>conspirators</q> seek to undermine traditional national culture through the promotion of large scale immigration designed to <q>swamp</q> and <q>dilute</q> traditional national cultures, in the process weakening traditional community defences. Thus the far Right makes an emotional appeal, heightening the feeling of insecurity by pointing to the threat from above represented by the <q>anti national</q> globalisers; and to the threat from below represented by all those from different ethnic cultures now living in <q>our</q> state.</p>
<h3>The Right against the euro</h3>
<p>It is not surprising therefore that opposition to the<br />
 euro represents a natural stamping ground for the far Right in the <acronym title="United Kingdom">UK</acronym>. Defence of the pound allows the fascists to pose as the opposition to the foreign <q>globalisers</q> and their anti national allies at home. The pound isn&#8217;t just seen as an economic symbol, but as a powerful political and cultural symbol too. It conjures up British imperialism&#8217;s mighty past, when the pound sterling was the international currency and when Britannia ruled the waves, (as well as waiving the rules lesser states had to abide by!). The monarch&#8217;s head also provides a symbol for all the authoritarian Crown powers the British state has at its disposal, putting the <q>Great</q> into Great Britain.</p>
<p>By making such links, the issue of the euro offers the fascists potential allies amongst the populist Right in the <acronym title="United Kingdom">UK</acronym> Independence Party and the Tory Eurosceptics. By joining together powerful City interests, middle-sized companies and many small businessmen, farm and fishing boat owners, the decidedly Right wing nature of the <q>No to the euro</q> campaign can be clearly seen.</p>
<p>Therefore the Left in the <acronym title="United Kingdom">UK</acronym> should take warning from Denmark. Here the <acronym title="Scottish Socialist Party">SSP</acronym>&#8216;s fraternal organisation, the Red-Green Alliance, decided to oppose the Euro-bosses and bureaucrats by joining the anti-euro campaign in 2000. They celebrated a <q>No</q> referendum victory by waving their red flags amongst crowds rather ominously displaying many more Danish national flags. When the Danish general and local elections were held the next year, the Red-Green Alliance lost one of its parliamentary and two of its council seats, However, the far Right Danish People&#8217;s Party, which had also campaigned vigorously against the euro, increased its parliamentary representation from 13 to 22!</p>
<p>In this country, unlike Denmark, there are major capitalist interests, represented by the Tories, who are also in the <q>No</q> camp. This makes the situation even more dangerous for the Left in the <acronym title="United Kingdom">UK</acronym>. If the Left tries to join this much wider Right on the <q>No</q>s playing field, they are only going to be small bit players. Any criticisms of the game being played by <q>our</q> team mates are going to be brushed aside.</p>
<p>The day after a referendum, any victory for the ‘No&#8217; camp would reaffirm the independent power of the Bank of England, of powerful City interests, along with those Tories competing with Tony Blair to be even keener advocates of a <acronym title="United States">US</acronym>/<acronym title="United Kingdom">UK</acronym> imperialist alliance. It would do little good for the Socialist Alliances and the <acronym title="Scottish Socialist Party">SSP</acronym> to wave their red flags, claiming we fought the campaign for better wages and conditions. Our voice would be drowned in a sea of union jacks, whilst those few remaining worker&#8217;s rights would come under an immediate and increased attack by an alliance of Right wing politicians and bosses, who would feel their day had arrived. No, the only other winners would be the fascist <acronym title="British National Parrt">BNP</acronym>, who would have waved their union jacks even more furiously and shouted their loyalty even more loudly than the Tories. The <acronym title="British National Parrt">BNP</acronym> can also look to their <q>No</q> camp allies in the European populist and fascist far Right, who, in Austria, Denmark, France, Germany and Spain have all made opposition to the euro a central issue. Le Pen travelled to Brussels to make an anti-euro speech days after he came second in the first round of the French Presidential elections.</p>
<h3>Left nostalgia gives succour to the Right</h3>
<p>However, it isn&#8217;t the populist Right and the fascists&#8217; intentions to confine their appeal to traditional conservative supporters. They want to construct a Right-led <q>popular front</q>, which reaches deep into the working class, splitting us on ethnic lines and dividing the Left. And there can be nothing more corrupting of and demoralising for the Left than to be drawn on to the rocks of defending the national state and culture.</p>
<p>This is why the <acronym title="British National Parrt">BNP</acronym> is openly challenging the Left on its own declared territory by claiming to be the defendants of the post-1945 Labour welfare state and working class communities. When fascists link their defence of welfare provision to defence of the state, it has indeed found the Achilles heel of much of the Left today. This is why it is most disturbing to find powerful supporters for a <q>No to the euro</q> campaign amongst the <acronym title="International Socialist Movement">ISM</acronym>, <acronym title="Socialist Workers Party">SW</acronym> and <acronym title="Committee for a Workers International">CWI</acronym> Platforms (as well as supporters of Socialist Outlook) in the <acronym title="Scottish Socialist Party">SSP</acronym>, and outside their ranks in the <acronym title="Socialist Labour Party">SLP</acronym> and <cite>Morning Star</cite> camps.</p>
<p>All these Left forces like to wear the cloak of old Labour in public, proudly displaying their post-1945 Labour welfare state <q>golden days</q> colours. Yet, it was always the case that Labour leaders&#8217; commitment to welfare reforms was part of a social imperialist deal with the British ruling class. For thirty years, the British ruling class was prepared to accept the welfare state on condition that Labour promoted British imperialist interests in the world. From Greece, India, Malaya and Palestine, to Rhodesia and Ireland and now in the Gulf, Kosova, Afghanistan and Sierra Leone, Labour leaders have faithfully kept to their side of the deal, long after the British ruling class has reneged on its part.</p>
<p>Today global corporations, British included, have largely escaped the one-time constraints imposed by national state governments. They are in the process of creating new transnational institutions to advance and defend their interests &#8211; the <acronym title="World Trade Organisation">WTO</acronym>, <acronym title="International Monetary Fund">IMF</acronym> and <acronym title="North Atlantic Treaty Organisation">NATO</acronym> and new regional power blocs such as the <acronym title="European Union">EU</acronym> and <acronym title="Free Trade Area of the Americas">FTAA</acronym>. Therefore the old deal has collapsed. Guaranteed pay rises and improved conditions have given way to labour flexibility. Welfare has given way to austerity and permanent war.</p>
<p>Even in the heyday of old Labour&#8217;s social imperialism, welfare was very much the junior dependant. However, with an organised British national Labour Movement it was possible to extract real concessions from a British national ruling class. But Old Labour, whether in office or as her majesty&#8217;s loyal opposition, was completely unprepared to fundamentally challenge a British ruling class which offered it some small slices of the imperialist cake. Today New Labour has accepted that its bargaining power is limited to squabbling with other states over the crumbs that fall from the global corporations&#8217; tables.</p>
<p>Indeed, having an organised Labour Movement is counter productive for New Labour. The new global corporations, unlike the old British bosses, can <q>up and off</q> if they feel they are being <q>put upon</q>. Therefore the former, very British deal between the representatives of British Labour and the British ruling class has been abandoned. Now we have New Labour&#8217;s give-aways and knock-down offers to the <acronym title="United States">US</acronym>, Japanese, German and, of course, British global corporations. This is done in a desperate attempt not to be left out in the worldwide Dutch auction of pay and conditions.</p>
<p>Just as workers can not conjure up the days when (a limited number of) Victorian local employers showed paternalist and philanthropist concern for their workers, neither can we just conjure up the days of old Labour&#8217;s national welfare state (which were also decidedly limited, particularly if you were a woman or black).</p>
<p>To construct a national welfare state behind a protectionist wall in today&#8217;s global capitalist environment means promoting national austerity when the cost of necessary imported goods goes through the roof. It means promoting heightened ethnic conflict as migrant workers are locked out and targeted minority cultures are scapegoated. It means large-scale repression of all internal opposition. It means moves to war to control access to needed raw materials and to impose strict military discipline on society. Fascists of course are prepared to do all of these things, even if they are coy at present in spelling out the logic of their politics in public. Whatever temptations there may be for today&#8217;s Left to nostalgically invoke the <q>golden days</q> of old Labour, it should be clear that the terrain on which we fight the global corporations can not be defence of the national state or its institutions, including whatever currency it sponsors. Today the Tories may loudly defend <q>the pound in your pocket</q>, yet at all other times they try their damnest to ensure it is only pennies in our purses!</p>
<p>Of course, the welfare reforms, securer employment, better working conditions and rising living standards won after the Second World War and in particular, during the late 60&#8242;s and early 70&#8242;s, should be widely celebrated by the Left. Yet, despite the many false claims, they weren&#8217;t really the gift of Labour politicians, but were largely won through hard fought class struggle. Indeed, it was always at the points when our class left it to Labour politicians to deliver reforms, that they were either diluted or snatched away. The <acronym title="United Kingdom">UK</acronym> state exists firstly to defend British ruling class interests, so our class&#8217;s needs are always going to be a low priority. Yet, it is precisely to this state that social democrats and later the official Communists, with their <q>British (state) road to socialism</q> always looked for their reforms.</p>
<p>This is why those in the <acronym title="Scottish Socialist Party">SSP</acronym> and Socialist Alliances, who wish to create a new, <q>Old Labour Party</q>, could lead our class to serious defeats. The populist and fascist Right are competing on the same national state grounds as this traditional Left. The former want to use the state to impose their counter-reforms, the latter to introduce its proposed reforms. Despite all those loudly ringing warning bells, whether from Denmark, Austria, France or closer to home, in Lancashire, it is nostalgia for old Labour and the British welfare state, which is still pushing many socialists into the camp of the Right in defence of the pound.</p>
<p>Some on the Left, of course, will insist on separate campaigns, refusing to join Right wing platforms. But on referendum day the only issue being voted on is for or against the euro or the pound. There will be no box to mark an <q>X</q> for better wages and conditions!</p>
<h3>The false arguments of the <q>No</q> and <q>Yes</q> groups</h3>
<p>Now, if willingness to adopt old Labour clothing goes a long way to explain how some on the Left end up giving succour to the Right, what possible arguments can they use to justify this?</p>
<p>The starting point for their reasoning is correct. Those promoting the euro, including Blair&#8217;s New Labour government, are acting on behalf of existing and would-be European global corporations. They seek a strengthened European Union to pursue their global interests, seeing the existing European national states as too small for effective competition on the world market. They also see the significance of the <acronym title="European Union">EU</acronym>&#8216;s Maastricht Convergence Criteria which imposed a 3% of <acronym title="Gross Domestic Product">GDP</acronym> limit on supporting governments&#8217; deficit spending. This is meant to force governments to cutback on welfare spending. Labour costs are then lowered and new opportunities for further privatisation measures are provided.</p>
<p>However, despite the claims of some on the Left, Blair doesn&#8217;t want the <acronym title="United Kingdom">UK</acronym> to join the eurocurrency zone to enforce these measures over here. He doesn&#8217;t need to! This was achieved by the Tories and has been massively reaffirmed by Gordon Brown. Indeed Chancellor Brown went further, showing his commitment to meeting the City&#8217;s requirements for financial stability and spending discipline above all else, by ending government control of the Bank of England and handing it over to Eddie George.</p>
<p>Yet there is a division of opinion in the City over the pound versus the euro. The City has been able to make large profits out of growing European monetary integration by offering itself as an off-shore tax haven for euro-finance. From this point of view, the City benefits both from the growing strength of the euro-zone and by remaining outside it &#8211; a bit like the Isle of Man in relation to the <acronym title="United Kingdom">UK</acronym>! However, others in the City see that the Frankfurt, Paris and Milan finance centres are not going to accept this British offshore status for ever and may encourage <acronym title="European Union">EU</acronym> bureaucrats to take retaliatory measures. Those in the City taking this view, realise that their interests may be better advanced by joining the euro and using the City&#8217;s considerable expertise to capture a greater share of the increased business inside an expanded eurozone.</p>
<p>There is obviously a similar division amongst British industrial and service companies. Some would have preferred Blair not to have signed up to the <acronym title="European Union">EU</acronym>&#8216;s Social Chapter, so that British labour costs could have remained lower, the better to undercut German, French, Italian and other businesses on the <q>mainland</q> <acronym title="European Union">EU</acronym> market. Others, also looking to the <acronym title="European Union">EU</acronym> market, want to be <q>on the inside</q>, the better to deal with the challenge of <acronym title="United States">US</acronym> and Japanese corporations.</p>
<p>Blair&#8217;s appeal to British companies with sizeable European operations doesn&#8217;t lie in seeking their support to impose criteria which have already been met. He wants their support for a joint offensive, alongside his new Right wing allies, Italy&#8217;s Berlusconi and Spain&#8217;s Aznar, to undermine the Social Chapter and lower labour costs from within the eurozone.</p>
<p>Now there is a small group inside the <acronym title="Scottish Socialist Party">SSP</acronym>, including ex-Labour Lefts, Allan Green and Hugh Kerr, who appreciate that, in general, social provision in most <acronym title="European Union">EU</acronym> member countries is considerably better than in the <acronym title="United Kingdom">UK</acronym>. A welfare gap has opened up between <acronym title="United Kingdom">UK</acronym> and French, Italian and German workers, after years of old and <q>new Tory</q> rule particularly since the crushing of the Miners&#8217; Strike. Whilst Blair immediately signed up to the Social Chapter when New Labour gained office in 1997, this was a political ploy. Acceptance of the Social Chapter was mainly to gain access to the inner corridors of <acronym title="European Union">EU</acronym> power. No inspectorate has been set up to ensure that superior European employment laws are implemented at work over here &#8211; they all still have to be fought for, workplace by workplace, industry byindustry. Blair wants to work from inside the <acronym title="European Union">EU</acronym> to dismantle these.</p>
<h3>What would a ‘Yes&#8217; and ‘No campaign look like – choose your poison</h3>
<p>The logic of the <acronym title="Scottish Socialist Party">SSP</acronym>&#8216;s pro-euro camp is to form an alliance with the small group of Left Europarliamentarians, to defend and extend the Social Chapter. The scope of such a campaign is likely to be fairly limited &#8211; a few public meetings with distinguished international parliamentarians and polite lobbies at Holyrood, Westminster and Brussels. The <acronym title="Scottish Socialist Party">SSP</acronym>&#8216;s pro-euro Left like to pretend the <acronym title="European Union">EU</acronym> flag already has sixteen stars (one for Scotland) on a radical red background, rather than fifteen stars on a conservative blue background. Hugh Kerr goes along with this illusion, drawing some comfort from the Alex Neil&#8217;s shrinking social democratic wing of the <acronym title="Scottish National Party">SNP</acronym> which entertains similar illusions. In the meantime, the free marketeers of the growing <acronym title="Scottish National Party">SNP</acronym> Right, led by John Swinney, join with the European bosses&#8217; pro euro advocates, dropping more and more old social market baggage as they go.</p>
<p>The logic of the <acronym title="Scottish Socialist Party">SSP</acronym>&#8216;s anti-euro camp is to seek unity and make an agreement with the Right over a division of labour in the campaign. This would be the best way to maximise the <q>No</q> vote and therefore to defeat Tony Blair. Back in 1975 when a then Labour Left and <acronym title="Communist Party of Great Britain">CPGB</acronym> alliance led the Left opposition to Common Market membership, we saw the walls of trades councils adorned with union jacks behind a platform of trade union officials, Labour and Tory politicians. This unholy popular front extended from Tony Benn and Michael Foot to Enoch Powell and Teddy Taylor! It was but a short step from this unity behind the national flag to that disastrous pact <q>in the national interest</q> between the Labour government and trade union leaders &#8211; the <q>Social Contract</q> (soon to be termed the <q>Social Contrick</q>).</p>
<p>Indeed we don&#8217;t have to go so far back to see a trade union and labour movement campaign following the full logic of such nationalist thinking. When British Leyland&#8217;s Rover plant at Longbridge was threatened with closure; instead of strike action, occupation and the seeking of  wider solidarity, the campaign decked itself out in full red, white and blue colours, looking for a patriotic employer to save the day. Despite a few face-saving red flags, any <q>No</q> campaign would be similarly swamped with union jacks and ultimately provide as little real comfort for workers.</p>
<p>An argument used by both the <acronym title="Scottish Socialist Party">SSP</acronym>&#8216;s pro and anti-euro groups is that we must take sides. However, the anti-euro camp claim that many more workers are instinctively against the euro, so that is why we should join the <q>No</q> camp. The weakness of these arguments should soon become apparent. It took a hard political battle to persuade many socialists that it wasn&#8217;t necessary to automatically side with Labour in general elections, even though many workers still <q>instinctively</q> voted for them. The <acronym title="Scottish Socialist Party">SSP</acronym> was built by standing against both Tory and New Labour (as well as the populist <acronym title="Scottish National Party">SNP</acronym>). It is precisely these two parties which are leading the <q>No</q> and <q>Yes</q> campaigns and whoever wins, neither has the slightest intention of improving our pay and conditions.</p>
<p>Then our <q>No</q> and <q>Yes</q> camps fall back on their last ditch defence. <q>So, you are arguing for an abstention campaign</q>, they say. <q>Who will be listening?</q> Now, an abstention campaign would actually be better than a political campaign which helped to build the hard Right or Blair and the Eurocrats. However, what socialists should really be arguing is for an Active Boycott Campaign.</p>
<h3>An Active Boycott Campaign &#8211; the recent European experience</h3>
<p>Here, the recent developments in Europe are most instructive. When Le Pen won the first round of the recent French presidential election, the Left &#8211; not only the Socialist and Communist Parties, went into a panic. How was Le Pen to be stopped? The French ruling class, which currently does not want a Le Pen victory, pushed out all the stops to ensure a Chirac victory. The Socialist Party and <acronym title="Communist Party of France">CPF</acronym> quickly obliged by offering their support against the fascist danger. Yet the slogan, <q>Better a thief than a fascist</q> proved to have considerable pulling power over the revolutionary Left too. As a result they gave out mixed messages in the run-up to the second round play-off.</p>
<p>The problem with recommending a Chirac vote is the reason Le Pen beat Jospin in the first round is that the revolutionary Left gained an unprecedented 11% of the vote, much of it from the Socialist Party. Yet the revolutionary Left were quite right to offer an alternative to all those voters disillusioned with the Jospin-led government. However, if you later accept that the main priority is to keep out the fascist, then the logic is that the revolutionary Left shouldn&#8217;t have stood in the first place – something that many French Socialist Party members are openly saying! Now the rise of the National Front vote in France is indeed disturbing, but there was no real threat of a fascist takeover &#8211; or even a Le Pen presidential victory. His National Front did not have control of the streets and was not ready to <q>March on Paris</q>. The only real political gain for Le Pen was to be seen as the only remaining opposition to the establishment when the second round election took place.</p>
<p>However, elections are just one form of political action, which actually demand relatively little from the voter. Street mobilisations are another more significant form, particularly when they put strict limits on the fascists&#8217; room for manoeuvre.</p>
<p>And it was precisely this alternative which exploded with elemental force from the hour the Le Pen vote was announced on April 21st. It began with thousands in the streets on that night and culminated, on May Day, in a 400,000 demonstration in Paris (with hundreds of thousands elsewhere), which dwarfed the National Front march of 10,000. But there was clearly an alternative to voting for Chirac. What if the revolutionary Left had thrown its whole weight behind a refusal to vote for Chirac, increasing the abstentions significantly, and hence increasing Le Pen&#8217;s proportion of the vote, what would have been the real effect? First, hundreds of thousands of workers, students and others actively mobilised is a much more potent force than even millions of passive voters. Many of those most angry were young people with no vote. What was their opinion? <cite>The Sunday Herald</cite> reported that one 15 year old declared that, <q>If Le Pen becomes president, it&#8217;ll be a civil war&#8230; and I think I&#8217;ll fight in that war</q> (28.4.02). And given the relative strengths of the Left and the Rights&#8217; mobilisations over this period, there can be little doubt that Le Pen would have been forced to retreat, particularly since the French ruling class don&#8217;t support his anti-<acronym title="European Union">EU</acronym> policies.</p>
<p>However, the revolutionary Left could have gone further and suggested an alternative combination of direct action and voting tactics. Whilst continuing mass mobilisation on the second round election day itself, they could have encouraged people to spoil their ballot paper. They could have provided <q>No to Le Pen, No to Chirac</q> or <q>No to Thieves and Fascists</q> stickers for the ballot papers. Interestingly, even without such clear guidance, 1,738,609 voters (or 4.4%) spoiled their ballot papers. An organised Left campaign could have built on this, but more importantly it could have shown those people disillusioned with the establishment parties, that there was indeed a real alternative, helping to deprive Le Pen of being the sole claimant to this mantle.</p>
<p>This is what an Active Boycott Campaign would look like. But our <acronym title="Scottish Socialist Party">SSP</acronym> <q>No</q> and <q>Yes</q> campaigners may still object &#8211; the <acronym title="United Kingdom">UK</acronym> and even Scotland isn&#8217;t France. This only shows how little they have appreciated the significance of anti-globalisation/ anti-capitalist mobilisations, not least in Genoa and Barcelona.</p>
<h3>Making the European Socialist Alliance a real force</h3>
<p>Let us look to what we can all agree on in the <acronym title="Scottish Socialist Party">SSP</acronym> and Socialist Alliances &#8211; workers&#8217; rights are under attack throughout Europe; the campaign for a 35 hour week first initiated in the late 70&#8242;s has floundered, particularly in the <acronym title="United Kingdom">UK</acronym>; racist sentiment designed to divide and weaken workers&#8217; organisations is being whipped up against asylum seekers everywhere in the <acronym title="European Union">EU</acronym>. It shouldn&#8217;t be difficult to draw up a common platform with our European allies. Indeed, the framework for this already exists in the <acronym title="Republican Communist Network">RCN</acronym>-initiated, <acronym title="Committe for a Workers International">CWI</acronym> supported and <acronym title="Scottish Socialist Party">SSP</acronym> Conference voted resolution on a <a href="http://republicancommunist.org/blog/2002/07/25/the-euro-referendum-the-case-for-an-active-boycott/">European Socialist Alliance</a>. We should write to all our fraternal European socialist organisations proposing a meeting to organise a campaign, including international mobilisations to advance an agreed platform.</p>
<p>At present, the front line of the defence of employment rights lies in Italy. Here the Berlusconi government is trying to end laws which protect workers in small workplaces. On 23rd March a million demonstrators marched through Rome in protest. Our fraternal organisation, <span lang="it">Rifondazione Communista</span> was central to this.</p>
<p>The Left in Italy appreciate that Berlusconi has firm allies in Aznar and in Blair (and probably soon in Chirac too!). It should not be difficult to persuade them of the virtue of a series of international demonstrations, as part of their ongoing campaign to defend workers&#8217; rights. If we could make solidarity with the Italian working class part of the European Socialist Alliance platform, then demonstrations in say, Madrid, London and Paris, would seem to fit the bill. When it came to the London demonstration, we could march from the Bank of England to the <acronym title="European Union">EU</acronym> Commission Offices to show our opposition to both sets of bosses, and their New Labour and Tory backers.</p>
<p>In the run-up to any referendum, it would also be good to be able distinguish ourselves from the blatant, red, white and blue trimmed British chauvinist posters of the <q>No</q> campaign; and the liberal pacifistic, <q>No more wars in Europe &#8211; lets all be nice Europeans</q> or <q>Shop easier on your European holiday</q> paid hoardings of the <q>Yes</q> campaign. Our street posters could have their main slogans in several languages, whilst our demonstration platform speakers would be drawn from different countries, but all united before a forest of red flags. Lastly on the day itself, we could produce suitable stickers to register our protest in their false choice ballot. Such a campaign would raise the Left&#8217;s profile much higher and would certainly avoid the pitfalls of the other alternatives on offer &#8211; tailing either the Tory or New Labour <q>No</q> and <q>Yes</q> campaigns. An Active Boycott Campaign would involve us in a far more serious campaign than merely abstaining but the potential gains  would be so much greater. We would also be building on firm internationalist principles.</p>
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		<title>Boycott Any Euro Referendum</title>
		<link>http://republicancommunist.org/blog/2002/03/24/boycott-any-euro-referendum/</link>
		<comments>http://republicancommunist.org/blog/2002/03/24/boycott-any-euro-referendum/#comments</comments>
		<pubDate>Sun, 24 Mar 2002 20:23:30 +0000</pubDate>
		<dc:creator>RCN</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[Emancipation & Liberation]]></category>
		<category><![CDATA[Issue 01]]></category>
		<category><![CDATA[Publications]]></category>
		<category><![CDATA[Author: Matthew Jones]]></category>
		<category><![CDATA[Bretton Woods]]></category>
		<category><![CDATA[Economy]]></category>
		<category><![CDATA[Euro]]></category>
		<category><![CDATA[Europe]]></category>
		<category><![CDATA[Finance Capitalism]]></category>
		<category><![CDATA[gold standard]]></category>
		<category><![CDATA[Karl Marx]]></category>
		<category><![CDATA[Paris Commune]]></category>
		<category><![CDATA[Russian Revolution o]]></category>

		<guid isPermaLink="false">http://republicancommunist.org/blog/?p=1150</guid>
		<description><![CDATA[Matthew Jones on an independent working class response to the bosses’ referendum Neither the European ruling classes, which have created the Euro nor the British capitalist supporters of the pound sterling are friends of the working class. Both are our sworn enemies. The choice being offered to us in this referendum is – a yes [...]]]></description>
			<content:encoded><![CDATA[<h2>Matthew Jones on an independent working class response to the bosses’ referendum</h2>
<p>Neither the European ruling classes, which have created the Euro nor the British capitalist supporters of the pound sterling are friends of the working class. Both are our sworn enemies. The choice being offered to us in this referendum is – a yes vote in support of the Euro or a no vote in support of the pound – not as some would put it Yes in support of Blair and New Labour or No against them.</p>
<h3>The nature of money</h3>
<p>To understand the class forces at work and where the working class should stand on the Euro it is first necessary to look at the nature of money. Originally precious metals – particularly gold – served as money. Karl Marx pointed out that the high value of gold relative to other commodities was due to the large quantity of labour time taken to produce gold. Historically the value of gold in the modern world market has changed slowly, falling only with the development of new extraction techniques or the discovery of major new deposits with easier workings.</p>
<p>For a time capitalism was able to sustain gold-based currencies as a world currency, a universal equivalent. At this time the gold backed pound sterling and the actual gold sovereign, the currency of Britain, the dominant capitalist power was the international currency. Other, poorer countries such as the various German states had to make do with a paper currency and the demand to import stronger currencies similar to the use of the dollar in Russia today.</p>
<h3>Surplus value</h3>
<p>However, the basis of all paper currencies is the surplus value extracted from the working class. Surplus value being Marx’s term for the tribute taken from the working class by the capitalist class and bearing a number of labels including profit, interest, rent etc.  History shows that the value of each currency depends on the success of each capitalist class in exploiting workers. Where workers are successful in winning concessions then the degree or even the absolut eamount of surplus value extracted by the capitalists will fall, as will the value of the currency. This is called inflation.</p>
<p>The rise of the workers’ movement internationally was heralded by the Paris Commune in 1871 and declared as a fully fledged alternative to capitalist rule by the Russian Revolution of 1917. It forced the gradual abandonment of the link between paper currency and gold – the <q>gold standard</q>- the last vestiges of which were swept away when the Bretton Woods currency system collapsed in 1971.</p>
<h3>No accountability</h3>
<p>Because money is so central to the operation of capitalism itself there is no way that the capitalist classes can or will concede any democratic control or accountability over their currencies. Only their trusted servants will be allowed anywhere near the system. Thus the notion that the operation of the European Central Bank controlling the Euro is somehow less accountable than the Bank of England controlling the pound is just untrue. Similarly the notion that controls over public spending currently being used in Euroland are significantly worse than the attacks perpetrated by Blair and Brown in the service of British capital is likewise false.</p>
<h3>Exploitation of workers</h3>
<p>Massive concessions to the working class were institutionalised after 1945 and produced a currency system where for the first time inflation was a permanent feature, for the ruling class and its assorted political servants <q>the war against inflation</q> became code for attacking the working class both nationally and internationally.</p>
<p>In class terms, the conflict between the supporters of the new Euro and those attempting to preserve the pound is a dispute between different factions of the ruling class on how best to maintain the exploitation of the workers. The Euro is a creation of the European Union which at its heart is a deal between the German and French capitalist classes. It is both a pact against the working class in Europe and an attempt to challenge the economic and political dominance of the <acronym title="United States">US</acronym> capitalist class.</p>
<p>In Britain, those forces supporting the Euro are led by those major manufacturers which remain in Britain plus that section of finance capital, which is either European owned or aligned to interests in the European Union. In some industries, such as cars and chemicals, there is a real fight over whether the Euro or the dollar will be the most significant currency. On the other side, the pound is supported by a large section of finance capital which is seeking to maintain the alliance between the British and <acronym title="United States">US</acronym> ruling classes plus a majority of small business. The advent of the Euro would undoubtedly mark another attack on sections of small business by large capital.</p>
<h3>Anti working class</h3>
<p>Both sides of this argument are united in one thing: their absolute determination to maintain the oppression of the working class and to press home further attacks upon it where possible. On one side we have the Tories with their base in small business and the more extreme elements of finance capital supporting the pound and on the other we have Blair with another throughly antiworking class programme.</p>
<p>It is difficult to see how the working class can fight for its own interests other than by calling for a boycott. Both sides of this argument represent the interests of different factions of the British ruling class.</></p>
<h3>Overthrow of capitalism</h3>
<p>The success of the working class in winning concessions from the capitalist class, whether in the form of wage rises and better conditions or better services from the state, undermines money itself by reducing its value through inflation. Whenever the working class comes close to overthrowing capitalism, money automatically becomes worthless because the capitalist class(es) concerned are unable to exploit workers and extract surplus value.</p>
<p>This is not to say that we should not demand more money as part of demanding concessions from capital or the state. But in a future Euro referendum the question will be posed <q>Are you in favour of this money or that money?</q> In other words are you in favour of this set of capitalist interests or the other bunch of bloodsuckers? Our answer must be no – we will fight for a greater share for the working class and for the overthrow of capitalism and it is not in our interests to choose the kind of chains the capitalists want to put on us.</p>
<p>Boycott the Referendum! Fight for Workers’ Interests not those of Capitalists!</p>
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