August 17, 2003

Bush became so abreactive after 9/11, that he declared the Iraq war as a crusade. It was simply an act of naked aggression so that Unicol, Arbusto and Exxon may have sole access to Iraqi oil

“IT CAN be said that indeed the bulk of capital formation in British industry during the Industrial Revolution was paid for by the colonial tributes. The surplus arising in the colonies was accumulated not at home but in the metropolis.” (Hamza Alvi; Colonialism and the Rise of Capitalism).

“Just as military power provides the muscle, economic power provides the lifeblood for a successful strategy for victory in World War III.” (Nixon; The Real War).

“The hidden hand of the market will never work without the hidden fist; McDonald cannot flourish without McDonald Douglas (the designer of F15).” (Thomas Friedman; New York Times, March 1999).

Though the USA has fought 133 wars since 1896, the war against Iraq has clearly manifested US designs. It was the demise of the Soviet Union and birth of the uni-polar world that made the USA more willing to use force abroad, and to establish a neo-colonial empire in the garb of free trade and a new global order. It is nothing but a new form and a new phase of imperialism, which has become more barbaric, more brutal and more savage to serve the interests of multinationals and transnationals.

Bush became so abreactive after 9/11, that he went as far as to declare the Iraq war as a crusade, as a war against terrorism, war against uncivilized world, war against the Axis of Evil. It was simply an act of naked aggression to occupy Iraq so that Unicol, Arbusto and Exxon may have sole access to Iraqi oil. US imperialism has designs to own resources, secure markets and exercise a geopolitical control of the world; but this war is the beginning of an end.

Iraq did not surrender; resistance against the occupation forces is on the increase. The changing winds have punctured a bloated Bush and the US. And if it dares to attack Iran, there will be backlash. This new phase and new form of imperialism actually began in the 1950s.

After the Second World War, the US became the sole beneficiary. During the reconstruction of Europe, the multinationals emerged. During the initial stages, these multinationals prospered under the patronage of the US Government, but later they became powerful enough to dictate it. This profound change continued and the multinationals became dominant oligopolies in the world market. At present, there are about 200 huge multinationals out of which one-third are American. Of the 10 largest multinationals and transnationals, eight are American. David Kurten in his book When Corporations Rule the World writes that two-thirds of all international trade is in the hands of multinationals, and out of it only one transnational carries one-third of the share.

The second profound change which occurred is the surplus capital of the multinationals which is hovering the world over to invest, particularly in the Third World countries. According to Mahboob-ul Haq, in 1997, it was $1,300 billion. Eric Hobson in his Age of Extremes writes that these multinationals endeavour that the government may take loans to buy arms or they invest in prestigious projects by hook or by crook.

In order to achieve the objects of these multinationals and to provide them the paradise, from 1945 to 2000, the US has spent $190 trillion on building military force. At present, the military budget of the whole of Europe is $150 billion, whereas the military budget of the USA is $450 billion. Today, the strategy of US imperialism is to colonize by proxy. American stooges are enthroned and they serve their masters with the help of American forces and the FBI, and in the process they cede the sovereignty of the nation and the people. The IFAs also work as agents of these multinationals. A research undertaken by Samsung describes the IMF as a tool of the American free market ideology and the US ambition to secure economic superiority in the post-Cold War era.

In this new phase, mass production for mass markets gave way to segmentation of the market for differentiated products. Before this phase, standard goods were produced in anticipation of demand. Now, the products are produced first and then the demand is created. This job can only be done by multinationals which go for inventions and innovations on the basis of the new power of technologies and marketing campaigns on a global scale.

Another far-reaching change has occurred in division of labour, which has created more surplus for capitalists. Now, in place of national division of labour, international division of labour has become the order of the day. On the one hand, there is the continuous brain drain towards developed countries, and on the other, multinationals get cheap labour from poor countries. Nike pays a mere $1.5 for eight hours’ work to a worker in Vietnam, while Nike shoes are sold for $100 to $150 a pair.

It can also be observed that a separation between stockholders and stakeholders has taken place. CEOs are a class in themselves, who go on expanding the corporation without an eye on productivity; thus misallocation and waste of resources takes place. Another feature is that together with finance capital, speculative capital has assumed unprecedented importance in the global market. Almost all the countries of South Asia came on the verge of collapse, and it was George Sorace who did it and earned one billion dollars.

The globalization of capital has its own dynamics. John Gray of LSE, who happened to be an advocate of the free market economy, writes in his book False Dawn that those who unleashed the neo-liberal revolution underestimated the revolutionary nature of global capitalism. In Gray’s view, global capitalism wrecks social cohesion, endlessly churning nations and communities. There is worldwide unrest in the West as well as the East; developed and underdeveloped nations. It can be seen that the working class of the developed countries demonstrated against IFAs from Seattle to the remote small town of Spain because the spectre of unemployment and insecurity of jobs are haunting them. Unemployment in underdeveloped countries is also mounting.

Monarchies and dictatorial regimes are repressing them, but the kettle is boiling. Before and during the Iraq war, billions of people came on streets — a phenomenon which has no precedent. The Italian Government was all out to support US aggression in Iraq, but violent demonstrations by the 2.5 million people forced the Italian Government to retreat. This globalization of the downtrodden people is a new phenomenon which is the natural outcome of the globalization of capital. The irony of the developing countries is that democratic forces are weak and living under suppression, but they will certainly enter the mainstream because they are most oppressed.

Globalization of the downtrodden people is the corollary of globalization of capital. They are gathering on one platform. The peoples’ movement is going to be a great threat. The World Social Forum (WSF) was formed in 2001, twice the number attended in 2002, and in 2003, the number tripled and came to a figure of 125,000 in the Brazilian city of Alegro. In this convention, thousands of workers and peasants were present.

Now is the time when the citizens of the world should take advantage of the contradictions of capitalism and force France, Germany, Russia, China, etc, to take a bold stand against US imperialism. It is a time that civil society and its organizations, like that of advocates, doctors, industrialists, traders, students, teachers, peasants and above all, workers, should put pressure on Third-World countries to form regional alliances to counter this threat. They should also become the part of the WSF which can be a precursor of a socialist movement.

With the demise of the Soviet Union, common sense was the first casualty and people were made to believe that unfettered, unregulated global markets is the panacea. History has proved that it failed to achieve global prosperity and political freedom. The poor have become more poor and the rich have become richer.

The cleavage between rich and poor countries has increased. This situation has awakened the people, and once again socialism is emerging as an alternative. The old socialist policies and structures have failed. Its old nature and form has come to an end, but the aims and values remain the same. Now, the social democracy of Rosa Luxemberg or the pattern of Oscar Lange, or some form and content like it, will emerge. Socialism will mean global solidarity of the people, global interdependence, cooperation, unity of action, collectivism and social ownership of resources for a just and prosperous world.

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