Showing posts sorted by date for query MONOPOLY CAPITALISM. Sort by relevance Show all posts
Showing posts sorted by date for query MONOPOLY CAPITALISM. Sort by relevance Show all posts

Sunday, September 29, 2024

Boeing Workers are Uniquely Situated to Disrupt the Global Economy

In their fight against Boeing, striking IAM members have significant leverage over the boss and the state.


Jason Koslowski and James Dennis Hoff
September 25, 2024
LEFT VOICE, U$A
Photo credit: Wall Street Journal

It’s been almost two weeks since more than 33,000 Boeing workers in Washington and Oregon went on strike, crippling one of the largest aerospace companies in the world. Since then Boeing has lost more than $500 million and is losing millions more every day. Thanks in large part to a series of terrible decisions, they seem unprepared to weather a long strike, but the struggle at Boeing has significant international implications as well. Boeing, after all, is the largest exporter in the United States by dollar value, the biggest supplier of commercial aircraft in the United States, and one of the main manufacturers of the weapons that Israel is using in both its genocide in Gaza and its war against Lebanon. It is also a key chokepoint in a much larger and still vulnerable global supply chain that extends across the globe.

All of this means that Boeing workers currently have a level of influence and leverage that far exceeds the immediate impact on the company’s bottom line. The union not only has a chance to recoup the major concessions forced on them by years of neoliberalism. They have a chance to throw a wrench into the imperialist machine itself.

In capitalism, the working class always has key strategic power. That’s because the source of all value and of all profit is ultimately exploited work, sucked out of us, vampire-like, by our bosses. We’re the ones who flip the burgers, drive the buses, weld the plane fuselages, teach the classes … and on and on and on. When we go on strike we remove that power — and start stemming the flow of profits made off of our labor.

But Boeing workers in particular are striking at a major strategic nexus of the global economy. It’s a “chokepoint,” and applying force here cuts off huge flows of profit across the system.

To see just how much leverage these 33,000 workers are holding in their hands, it helps to think in terms of concentric circles: the economics of Boeing, its place in the U.S. economy, and then its place in the global economy.
A Crisis of Boeing’s Own Making

Whatever kind of day you’re having, it’s not as bad as the Boeing CEO’s. That’s good news for the working class — and not just in this country.

First of all, Boeing is in the midst of a major crisis of consumer and investor confidence.

Not only is it massively in debt, but for months now, every major newspaper across the globe has been reporting on one Boeing disaster after another, highlighting how Boeing has, time and time again, put profit over the safety of its workers and consumers. In January, for instance, an emergency exit door blew off one of their planes mid-flight, leading to a loss of cabin pressure that could have been catastrophic. It was a 737 MAX 9, produced at the Renton plant outside Seattle, one of their newest models.

This was hardly just a blip on the radar.

In 2018 and 2019, two planes crashed, killing every person on board. This past July, the company’s leaders pled guilty to criminal fraud in those cases. Meanwhile, problems with the Boeing Starliner space capsule have left two astronauts stranded on the International Space Station for months. These astronauts will now not be able to return home until February.

All told, Boeing has already lost something like $1.4 billion in the last three months. It’s shouldering $58 billion in debt. And now there’s a strike.

In other words, the union has tremendous leverage over the boss: Boeing simply can’t afford this strike. If this strike is anything like the last one in 2008, they’re looking down the barrel of losing something like $100 million in lost revenue per day until the strike is settled and workers return to the production lines.

How’d we get here? To see that, we have to take a glance at the last couple of decades at Boeing.

First, it’s worth remembering that in 2004, under then-President George W. Bush, the Federal Aviation Administration (FAA) decided that Boeing can regulate its own production. In other words, it would not be regulated by an outside body. This helps to explain why Being was able to cut corners so aggressively in making its planes, to maximize its output and its profits.

The problems with this system of self-regulation were made clear when a whistleblower came forward to detail the many mistakes and safety problems that were being ignored by the company. This whistleblower was reporting exclusively on the production of the 787 at Renton, but the lack of any outside oversight means we can probably assume that these kinds of “cost cutting” procedures are common in making other planes, too. For instance, Fortune has reported that “engineers in the construction of the 777 jets” were also “‘pressured to overlook’ issues. … The complaint … alleges these defects ‘are generally not detectable through visual inspection… [and] could ultimately cause a premature fatigue failure without any warning.’”

Another key plank of this production model is the company’s attempts to undercut the union. Just after the last contract was settled with the IAM — in 2009 — Boeing announced it would be building its newest model of jets in Charleston, South Carolina, far from the unionized main plant outside Seattle. The main reason: the workers there, like so many others in the south, wouldn’t be unionized. That, in turn, meant cheaper workers whose hours and workload could be ramped up without any protections from a union. The move was a powerful blow to the IAM’s leverage, raising the specter that the company could just shut down and move production if the union did not play ball. And unfortunately that’s exactly what the union did. The leadership of the IAM cut a deal a few years later to give huge concessions to the bosses, including giving away the guaranteed pension — one of the main grievances in this current strike.

In the wake of these attempts to undermine the union’s power, union workers have faced even more pressure from Boeing to ramp up production. At the Washington plant, some aircraft “can move down the line with incomplete work in order to maintain speed,” reports Business Insider.


Speaking to National Transportation Safety Board investigators in April, another Renton [Washington] factory employee, who works on seat installation, said there were problems with time management. “You just got to work around it,” he said. “So if like, another crew is behind, we’ll just work on the next plane we need to work on.” … He added that 60% to 70% of the aircraft that come through to his station are still waiting for other work to be done. “They travel defects [defective parts] constantly. The line has to keep going” …

Boeing isn’t very original, though. These practices are part of the wider trend of “just-in-time” production that’s been a key part of capitalism over the last few decades: reduce lag time, increase shipping speeds, reduce warehouse space, and speed up production to its maximum in order to ramp up profits.

In other words, the catastrophic failures of Boeing’s planes aren’t the result of lazy workers; they’re baked into the system. Doors falling off of airplanes is par for the course.

But, as Kim Moody so elegantly explains, what makes this system of just-in-time production so profitable, also makes the company vulnerable. In On New Terrain, Moody says:


The overall picture of the context in which the U.S. working class has taken shape since the early 1980s began as one of decentralized production via outsourcing, increased precarious work, and the experience of fragmentation. As is so often the case in the expansion of capital accumulation, however, the reality of competition has produced an opposite tendency in the increased concentration and centralization of capital in almost every realm of the production of goods and services. As part of this process, more and more aspects of production are tied together in just-in-time supply chains that have reproduced the vulnerability that capital sought to escape through lean production methods and relocation

When these supply chains are broken, when production slows down, even a little, it can have knock-off effects across the industry and often the entire economy. This is why this strike in particular, and similar strikes at other major manufacturing or shipping bottlenecks like the ports, Amazon, or the Big Three auto manufacturers are so powerful. But these workers don’t just have leverage over their bosses. They have significant leverage over the global economy as a whole.
A Chokepoint in the Global Economy

Boeing, after all, isn’t just another corporation. It’s a massive monopoly and is more or less the only major U.S. supplier and manufacturer of commercial aircraft.

Its total revenue last year was an astounding $77.8 billion (up 17 percent from the year before). Though a small portion of the total U.S. GDP, Boeing is just one part of a much larger chain of production that reaches across the entire economy. Making an aircraft, for example, also requires making glass, plastic chairs, fuselages, rubber tires, microchips and entire electronic displays, and so on. The strike threatens to disrupt a long supply chain of goods in the U.S. economy — precisely when it seemed like the supply chain disruptions of the pandemic were smoothing out, and at a time when both Harris and Trump are promising a restored “normal” economy for the ruling class. Since Boeing is one of the largest suppliers of commercial aircraft to U.S. airlines, it also threatens to disrupt the airline industry, leading to potentially higher consumer costs, aka inflation, which has been a significant contributor to the labor struggles, particularly among organized labor, that we’ve seen since the end of the pandemic.

This strike, in other words, doesn’t just hold leverage over Boeing’s bottom line. The workers are holding in their hands a significant chunk of the United States’s overall economic output. All this gives some sense of the leverage of the IAM union at this moment.

And it’s not just in the United States that Boeing has such economic weight. As the single biggest exporter in the U.S., it stands at the center of its imperial agenda. Its main competitor in the world is AirBus and together — as a global duopoly — they corner the vast majority of the world’s aviation economy. With a wobbling Boeing, though, the problem isn’t just that AirBus will take on more market share, increasingly crowding Boeing out of the market. The problem is the United States’s imperialist maneuverings against China. As a symbol of America’s technological leadership, the calamitous state of Boeing’s production process, the safety scandals, and accidents, are yet more signs of the decline of U.S. imperialism.

Both Trump and Biden have made trying to maneuver against China central to their administrations. In this, they were continuing a much longer legacy, which includes Obama’s “pivot” to Asia to try to contain China. When Biden unrolled his “Build Back Better” plan to rebuild the United States’s infrastructure, a key goal was to prepare the United States to compete with China. As it is, though, the Chinese economy is already leading in one key area: electric vehicles. They’re flooding the markets of the world with their models, with the United States struggling to respond. Now the danger to the plan of containing China economically, then, is that, with a struggling Boeing, China could better market its own aircraft abroad.

But Boeing doesn’t just make planes. It makes weapons, too — a lot of them. It’s the fourth largest weapons company in the world, and weapons manufacturing account for a full 44% of its total revenue. And in the last few years it’s also been the single biggest producer of weapons for the State of Israel, fueling the still unfolding genocide, which has completely upended the lives of millons and already led to the deaths of more than 40,000 Gazans.

In this sense, the global impact of an extended strike at Boeing not only threatens capitalist profits, it also directly threatens the imperialist firepower of the United States.

No wonder then that major players in the U.S. state have already sent federal mediators in to settle the strike as soon as possible. Though the union leadership of IAM sees such mediation as being in their favor, the rank and file should not place any trust in the U.S. state or the National Labor Relations Board (NLRB) to represent their interests or the larger interest of the larger working class. Make no mistake, the federal mediators are not there for the workers but are part of an effort to keep the wheels of imperialism well greased and running smoothly. But the rank and file have a chance to take this strike into their own hands and, alongside the larger working class, use their leverage to build a fight against both the boss and the state.
Strike Boeing for Gaza

Although the workers currently on strike at Boeing are focused mostly on their contract struggle, the strike — as we explain above — has the power to disrupt not only Boeing but also the broader U.S. economy, and even the global economy.

That leverage is a crucial weapon to reverse a long history of concessions to the bosses that led, among other things, to the elimination of IAM’s pension.

There’s much more at stake, too. Not least is our own safety.

We already pointed out that Boeing is a duopoly, and the only U.S. maker of commercial aircraft. It hasn’t just been cutting corners, it’s been slashing at them. Doors are falling off planes; the leaders of the company have already pled guilty to criminal fraud in deadly crashes. The IAM fight, in other words, isn’t just about better conditions and wages; it’s about the safety and integrity of the aircrafts that so many of us have to fly on.

However, in the midst of an unfolding genocide that is being fully funded by the United States, with weapons made by the very same company these workers are fighting against, they are also in a unique position to go further, to take a stand against that genocide, and to demand an end to all weapons shipments and aid to Israel. This is a hugely popular demand among working class people in the United States; it could garner a ton of support for the strike, while at the same time asserting the hegemony of the working class, showing how they can fight for deeply-felt causes in our society.

We already know the old story: Biden, Harris, and the Democrats wave a vague hand at the idea of stopping the slaughter, while continuing to send guns, bullets, bombs, and cash. Boeing’s CEO and its shareholders are cashing in. Stopping the brutality now is going to have to happen because of workers standing at global chokepoints.

In other words, by taking up the fight for Gaza, the workers on the Boeing picket lines have a chance to link up with one of the most militant and dynamic parts of class struggle recently in the United States — to build up wider, and militant, support for the strike.

And this is not just pie in the sky. It is something that several unions have already taken up, including the Association of Flight Attendants (AFA), the Service Employees International Union (SEIU), the National Education Association (NEA), and the United auto Workers (UAW). While the bureaucracies of these unions have done little more than make statements, the demand, thanks in part to these efforts, has become more mainstream.

In fact, IAMs own Executive Council has already called for a ceasefire — in March of this year!

In cloudy Seattle, we’re seeing thousands of workers on picket lines who have the power to throw a wrench into the local economy, the global flow of profits, and the imperialist war machine — to win their demands and actually do the thing their union leaders, and union leaders across the country, are calling for. It seems clear from the outside the union leaders don’t have much interest in following through on their own call for a ceasefire. In other words, the workers have major leverage, but to be fully used, it’ll have to be wielded by the rank and file themselves.

And even more than this, IAM rank and filers are facing down a chance to set a precedent for the entire labor movement to follow. We’ve seen plenty of our unions in the United States offering fine words — and little action — against the genocide. Taking a stand now, using the strike to fight against the shipment of bombs to Israel, could be the inspiration that other rank and filers need to help them join the fight in their own strikes: to turn words into action.

IAM’s fight is ours too; it belongs to the whole working class. It’s a powerful part of the tooth-and-claw fight to reverse the long decay of worker power and conditions in the neoliberal age. Boeing’s pickets are at the vanguard of that fight today. But IAM’s fight is at the vanguard of the working class’s struggle right now, too — a chance to disrupt the imperialist slaughter that the United States is so good at exporting.


Jason Koslowski

Jason is a contingent college teacher and union organizer who lives in Philadelphia.


James Dennis Hoff

James Dennis Hoff is a writer, educator, labor activist, and member of the Left Voice editorial board. He teaches at The City University of New York.

Dispatch from the Boeing Picket Lines

Here’s what I saw at three Boeing picket lines in Washington and Oregon.


Samuel Karlin 
September 26, 2024
LEFT VOICE, U$A



When I booked a trip to the Pacific Northwest back in April, I didn’t think for a second that it would align perfectly with the largest strike in the United States so far this year. I just thought I’d be hiking and see the world’s largest rubber chicken in Seattle.

But then 33,000 machinists at Boeing voted overwhelmingly to strike, despite the International Association of Machinists bureaucracy pushing workers to accept a sell-out contract. Less than a week later I was lucky enough to meet some of these workers on the picket lines. The flight from Newark to Seattle was six hours on a Boeing plane, so even before reaching the picket I was reminded of just how different mine and so many people’s lives would be if not for the machines these workers build.

After picking up a rental car and a quick meal, I went straight to the picket line at the Boeing factory in Renton, WA, just outside of Seattle. As I drove by to find parking, picketers were dancing along the sidewalk. Before my trip was over I’d go there once more and also visit the picket in Portland, Oregon.


September 17 in Renton, Washington

I don’t think I’ve ever strolled up to a more energetic picket line. As I approached the big tent surrounded by a large crew of workers and their families, someone greeted me with “Welcome to the block party!” It sure felt like one, with all sorts of food from pizza to freshly grilled sausages blanketing two folding tables and loud hip hop blasting from a speaker. The energy from the workers was matched by the constant stream of cars passing by and honking in solidarity.


Asian, Black, and white workers were dancing, laughing, and talking with one another. It was a beautiful reminder that despite stereotypical depictions of the working class in the United States as mainly chauvinist white men, U.S. workers are diverse and nothing breaks down the very real racial divisions of our class like a shared struggle on the picket line.

I grabbed a sign and stood at the curb soaking it up. Pretty early on it became clear that vehicles were still regularly driving in and out of the facility, almost always honking or raising their fists in solidarity with the workers on strike. Even though these drivers were still helping Boeing run, the striking machinists seemed to mainly just appreciate the honks from these workers and see them as acting in solidarity.

After about an hour I spoke with a machinist who works at the end of the line, checking the quality of the product. He was practically bursting with excitement to be on the picket line. It was his first ever strike. He was ecstatic that I’d come all the way from New Jersey to support, yelling every few minutes at his coworkers “They came all the way from New Jersey!”

He also said in passing that he was surprised I was there to support because “A lot of people don’t like Boeing.” I see where he’s coming from. Boeing has been in the news lately for planes breaking down, and especially in light of this strike I’ve noticed a media campaign trying to pin the blame on the workers who construct the planes. The truth is, these workers are incredibly talented craftspeople spending long hours making machines that improve countless people’s lives and help the world run. It’s the company and bosses who deserve scrutiny for trying to cut corners and ramp up production to save money which degrades the quality of the planes and thus the safety of the workers making them and the passengers using them.

From the still constant stream of honks from passing cars, it seemed that even if people don’t like Boeing the company, they like workers and agree that for their contributions they deserve the 40 percent raise and quality retirement and healthcare that they’re demanding.

I then talked to another machinist who works at the end of the line. “I’m here for my coworkers,” he said, emphasizing that his highly-skilled position pays comfortably, but that he knows so many Boeing workers who aren’t paid a decent wage and that it was important to him to support them. He also expressed some anger with the union leadership which had tried to sell out these workers and prevent a strike. He talked about the union not managing retirement funds well, and donating to “all sorts of political campaigns.” This point really resonated. Especially in this election year, it’s been clear to me that the role of the union bureaucracies is to align workers with the capitalist parties at a time when the labor movement is becoming much more combative. Along with strengthening the parties of the bosses, this work of the union bureaucracies leads many workers to distrust unions as organizations that can be by and for the rank and file. Unions should be organized from below by people like this machinist who was committed to fighting for his less well-off coworkers, not by bureaucrats beholden to the Democrats.

After spending some time at this main tent, I walked down the road where there were smaller (but still highly energetic) pickets sprinkled outside each entrance to the factory. At one of these spots a group of workers kept yelling “do a wheelie” at the passing cars. They were clearly having just as good a time away from the main tent. Eventually I left to check into my hotel and take a desperately needed nap, but very excited to return.

As I was leaving I walked past signs taped to a large traffic pole, reading “THE UNION SOLD US OUT,” and “2014 ALL OVER AGAIN,” the latter referring to the 2014 contract that passed by a mere 51 percent due to pressure on workers from the union leadership. There were also signs encouraging a no vote on this recent contract that the union had been pushing prior to the strike. Another reminder that if the workers win, it’ll be from the fight that the rank and file puts up.


September 18 in Renton, Washington


I returned the following evening to a much different scene. Maybe it was just a weird day and time for the picket. Maybe it was because this was the day that Boeing and the union returned to negotiations which are closed to the rank and file. Maybe it was the news of Boeing furloughing thousands of white collar employees. Whatever the case, far fewer people were out on the picket line, and the mood was much more passive.

I arrived at the location where there’d been about 80 people celebrating the day before. This time there were just five workers holding it down, not talking to each other much, though occasionally one would crack a joke to another. Despite the small numbers, these workers seemed to be in good spirits.



At one point a pedestrian walked by and while waiting to cross the busy intersection, asked about the negotiations. One of the more talkative workers responded that if they don’t get the 40 percent raise that they’re demanding, then “We’ll vote no again.”

I walked down to some of the other locations. The first one I approached had about ten workers. A child of a worker, maybe about eight years old, sat in a camping chair blasting a horn at passing cars. Some workers stood in clusters making small talk.

I walked to another entrance covered by a small but mighty group of workers who were putting all their effort into getting honks from passing cars and hollering “Just give me my money!” One or two cars flipped off or yelled racial slurs at the workers as they passed, an unfortunate reminder that there’s still people out there who are hostile to class struggle, especially when Black and Brown workers are part of it. Still, only about two people like this passed. Dozens if not hundreds honked in support.

Again, I noticed that whenever vans drove in and out of the factory the drivers tended to honk and express solidarity, and the picketers seemed to appreciate it. I asked a worker about it and he simply said, “Yeah they’re in a different union. I think the forklift drivers?” I thought to myself how powerful it would be to see these drivers join the strike, showing clearly that Boeing is nothing without workers in all points of production, from the machinists building planes to drivers transporting materials. Sadly, labor law has greatly attacked the historical practice of workers in different unions striking in solidarity with their class siblings who go on strike for better pay, benefits, and conditions. But at least at the Renton factory, there’s clearly some driver/machinist solidarity that can be built upon for greater shared struggle.

Later on I heard a younger worker telling his fellow picketers about his typical work shift which starts around 2am and runs through to the morning. He said, “It’s not too bad,” but he and his coworkers joked that if he wants a girlfriend he’ll have to meet her in the factory and take her on a date in the cafeteria. A worker who’d been there a decade at least replied, “I’ve seen this work break up so many families,” referring to the long hours that seem to be the norm for most of the machinists.

While it didn’t come up at these pickets, there has been much reporting on how Boeing uses forced overtime to make workers labor for long hours, with some workers spending 70 hours a week at the factory.

September 21 in Portland, Oregon

After a drive down the 101, I was in Portland where I had the opportunity to check out another picket at a different factory. This one was smaller than the first one I attended, about 30 people maybe, but it ended up being the most overtly friendly picket of the three. Just about everyone along the sidewalk outside the factory was smiling as I pulled up.

I arrived at a small tent with two people and we immediately started talking. I asked how they felt about the strike. One said she’d start looking for work soon because she didn’t want to be sitting around with nothing to do. The other seemed more content, adding “we’ve had years to prepare for this.”

I soon learned from conversations that this factory in particular had about 1,000 workers and while the strike was taking place there were 4 scabs inside trying to fill the tasks of about 30-something people and operate machines that they had no clue how to use. I was also happy to learn that this picket had received support from many other unions including firefighters, representatives from the local AFL-CIO, and Society of Professional Engineering Employees in Aerospace, to name a few. Plenty of passing cars also showed solidarity with their horns.

“I think how these negotiations go will affect how all negotiations in the future go,” one worker said. Adding that “If Boeing can get away with cutting retirement, what’s stopping other companies from doing it? If they can go after healthcare, other companies will.” He clearly understood this strike not just as a fight for himself and his coworkers, but for the larger labor movement.

I also learned from talking to another worker that the union was in charge of scheduling who showed up for which picketing shifts, and at least at this factory that meant workers were mostly only scheduled to picket with people they’d typically work with inside the factory. This type of bureaucratic organization of the picket lines is the norm and presents an obstacle to this strike and many others becoming as powerful as possible. Pickets should be spaces that bring out as many workers and community members as possible. In fact, the pickets should serve as spaces where workers have the opportunity to decide how to organize their strike rather than having the union bureaucracy dictate tactics to the workers. These could be spaces where Boeing workers try to convince drivers to join them on strike, affirm their most important demands, and strategize the fight so that the picket can last the long-haul and no contracts skimp out on their demands.

As I headed out I saw some type of box for telecommunications just inside the factory lawn, with “free Palestine fuck Boeing” scrawled across the top. It was powerful to see this message right outside the factory given the role that Boeing is playing in the current Israeli genocide in Gaza. Boeing has long been one of the top weapons manufacturers, and reporting from The Intercept highlights the company’s direct, currently expanding role in Israel’s genocidal campaign.

With no context of who wrote the message or how long it had been there, I don’t want to make too many assumptions. Maybe it was from an unrelated protest. But it made me hopeful that the historic movement for Palestine can find its way onto the picket line in solidarity with these workers fighting for the company to pay them what they deserve. The historic, youth-led movement for Palestine in the United States has shown that imperialist countries should not be written off as sites of struggle against oppression of the world’s most vulnerable people. Meanwhile, the Boeing strike and other recent struggles from the U.S. working class shows the unparalleled role that workers play in making everything, including imperialist companies like Boeing, run. These two struggles, the movement for Palestine and the strike at Boeing, showing up for one another is a scenario that could greatly change how each movement understands its own power and the role that the U.S. working class can play in resisting oppression and all forms of imperialism.

So far, there have only been a few examples of connections being made between the striking Boeing machinists and the anti-imperialist movement for Palestine. The bureaucratic control of the union leadership also is likely to present an obstacle to more militancy in Boeing workers, whether it be the workers taking up anti-imperialist demands or organizing the strike from the rank and file. Despite these limits, I can’t help but feel moralized by these picket lines and what they show about the growing desire of the U.S. working class to fight for everything we deserve.



Samuel Karlin
  is a socialist with a background in journalism. He mainly writes for Left Voice about U.S. imperialism and international class struggle.


Thursday, September 26, 2024

Techno-Fascism, Techno-Terrorism, And Global War

September 25, 2024
Source: Originally published by Z. Feel free to share widely.

Image by David Merrett



The world is moving inexorably towards war. Any imaginary poll of the world’s population would show that nobody wants war. But war will probably break out before the end of the decade. Most countries in the world claim to have democratic regimes, but no party with any electoral significance, from left to right, considers war an imminent danger and takes up the fight for peace as its main banner. Peace doesn’t win votes. War brings dead people and dead people don’t vote. No party can imagine carrying out electoral propaganda in cemeteries or mass graves. Nor does it imagine that without the living there are no parties. All this seems absurd, but absurdity happens when reason sleeps, as Francisco de Goya warned us 225 years ago in his painting El sueño de la razón produce monstruos. We don’t need to go that far back.

The lessons (or illusions) of history

Let’s go back to 1900. England was then the most powerful country in the world. But as every apogee means the beginning of decline, the peaceful competition of the US was beginning to be feared. Economic growth in the US was vertiginous, the latest inventions of the industrial revolution were taking place there and, among the many advantages over Europe, one was particularly precious: the US spent very little money on weapons. According to reports at the time, a country of 75 million inhabitants had an army of 25,000 men and a ridiculous defense budget for a country of that size. On the other hand, the most developed European countries (England, Germany and France) were in increasingly fierce competition with each other over colonial sharing and industrial superiority (Germany was increasingly in the spotlight) and were entering the arms race. In addition, between 1899 and 1902, England was fighting a sordid colonial war against the Boers in South Africa. At stake was the control of gold production and Cecil Rhodes’ imperial dream: from the railroad between Cape Town and Cairo to total control of the world so that “wars would become impossible for the good of mankind”. Imperial capitalist domination demanded war and the arms race, allegedly to make war impossible in the future. Are there any similarities with the current war speeches of the US and the European Union to defeat Russia and China? There are, but there are differences.

In the first decade of the 20th century, two movements were visible: one in public opinion and the other in business. Public opinion was dominated by an apology for peace against the dangers of a war that would be fatally deadly. The 20th century was to be the century of peace, without which the prosperity that was being announced would not be possible. In 1899, the first International Peace Conference was held in The Hague and, the following year, there was the World Peace Congress. From then on, there were many international congresses and meetings on peace. It was deplored that international cooperation was deepening in all areas (postal services, railways, etc.) except politics. Between 1893 and 1912, 25 books were published against the arms race. Who is Who in the Peace Movement was widely published. Recent inventions in war material (smokeless gunpowder, rapid-fire rifles, explosive substances such as lyddite, melinite and nitroglycerine, etc.) were said to make war not only very deadly, but impossible to win for either side in the conflict. War would always end in a stalemate and after much death and devastation. A journalist from the English Echo resigned from the paper so that he wouldn’t have to defend the war against the Boers, and 200 high-profile English intellectuals organized a dinner in his honor. Between 1900 and 1910, more than a thousand pacifist congresses were held: workers, anarchists, socialists, freethinkers, Esperantists, women. The growth of democracy in Europe and the USA was said to be incompatible with war and that the large number of arbitration agreements was the best demonstration of this. The Russian sociologist Jakov Novikov demonstrated that the well-being of the masses had never improved with the wars, quite the opposite. People wrote about “the illusion of war” and the publications sold many thousands of copies.

There was a current of opinion that the real illusion would be the “illusion of peace” if the struggle were not reoriented against capitalism. If this didn’t happen, war would be inevitable. This was the position of socialists, anarchists, and the workers’ movement, which socialists and anarchists sought to control. War was the great obstacle to social revolution. The general strike and the refusal of military service were two of the most frequently mentioned forms of struggle.

But the world of public opinion was one thing and the world of business was another. In the business world, since 1899 the arms race had been advancing at a rapid but discreet pace. At the 1907 International Workers’ Congress in Stuttgart, Karl Liebknecht revealed the extraordinary growth in arms spending, which meant that countries were in fact preparing for war. The profits of the big arms companies reflected this: Krupp in Germany, Vickers-Armstrong in England, Schneider-Creusot in France, Cockerill in Belgium, Skoda in Bohemia and Putilov in Russia. It was clear that the accumulation of weapons would lead to war. In fact, the big companies were beginning to use a new propaganda weapon: paying journalists and newspaper owners to publish fake news about the growing armament of their probable opponents in the coming war in order to justify spending more on weapons. Sounds familiar to today’s ears? Yes, but there are differences and for the worse, much worse.

The socialists were right: the fight is against capitalism

The apogee of US-led global capitalism came in 1991 with the end of the Soviet Bloc. Just like a hundred years before, the apogee of the most powerful power meant the beginning of its decline. And just as before, the most profitable industry in periods of decline is the one that produces goods whose use consists of destroying and being destroyed. Such goods have to be ceaselessly replaced by others for as long as the war lasts. The longer the war lasts, the greater the profits. Eternal war is therefore the most profitable. Now the big arms companies are no longer European, they are American, and the US, unlike a hundred years ago, is by far the country that spends the most on armaments and therefore has the greatest need to use them (that is, to use by destroying and replacing). The US spends a trillion dollars on armaments, but it’s certainly not enough because war entrepreneurs invent disadvantages for the US in relation to its enemies which have to be overcome promptly.

The struggle for peace is now more than ever a struggle against capitalism. Why more than ever? If, in the wake of Immanuel Wallerstein, we take the world as a unit of analysis, we can say that between 1917 and 1991 the world experienced a period of intense transnational civil war. It was a civil war because it took place within a single system – the modern world system. Although globally dominant, capitalism had to contend with another strongly competing economic system, state socialism, whose influence extended far beyond the Soviet Union. This civil war was fought by multiple means, including counter-insurgency, development aid to dependent countries and proxy wars (Korean War, Vietnam War, etc.).

The Second World War was a period of calm in this civil war, since the USA and the USSR were allies against German Nazism. With the end of the Soviet Union and the transformations that had taken place in China in the meantime, which would integrate the Chinese economy into the world capitalist economy, albeit with some specificities (maintaining national control of financial capital), the transnational civil war between capitalism and socialism ended. There was an interregnum, which lasted just over ten years, in which Russia was a capitalist country of intermediate development like any other and China was an economic partner, also of intermediate development, but with strategic value for US multinational companies bent on the monopolistic conquest of the world.

After the global financial crisis of 2008, a new transnational civil war began, this time between the capitalism of US multinationals and the state capitalism of China. In order to neutralize China, it was necessary to block its access to Europe for two reasons: Europe was, alongside the US, the other major affluent consumer in the world; through cooperation with China, Europe could have some claim to escape the increasingly evident decline of the US in the world economy and become an additional factor of competition and weakness for the US. In order to block China’s access to Europe and subject the latter to the US, it was necessary to separate Europe politically and economically from Russia (whose territory is mostly in Europe). Russia, with its thousands of kilometers of borders with China, is not only China’s access route to Europe, but also the strategic territory of Eurasia. The idea that whoever controls Eurasia controls the world has been around for a long time. This has led to a new transnational civil war, the first proxy wars of which are the Russia-Ukraine war and the Israel-Palestine war.

This civil war is totally different from the previous one. In the previous one, the struggle was between two economic systems (capitalism versus socialism), while now it is between two versions of the same economic system (multinational capitalism versus state capitalism). Nothing guarantees that this war will be less violent than the previous one. On the contrary, as we have seen, at the beginning of the 20th century, the dispute took place between countries with a long common past located in a small corner of Eurasia. Today, it is a struggle for global domination that extends beyond the planet. Monopoly capitalism was born in 1900 when US financial capital began to expand into railroads and from there into many other sectors and, potentially, into every country in the world.

For monopoly capitalism, the idea of a multipolar world is as threatening as the idea of competition with other economic systems, and the same destructive drive is present in both cases. What’s more, the potential and degree of destruction are now immensely greater than before. I’m not referring to the existence of nuclear weapons, a life-destroying technological innovation that makes the preoccupation of commentators at the beginning of the last century with the warlike inventions of their time ridiculous. I’m talking about the nature of today’s global capitalism and (dis)governance, and the emergence of two of its consequences. We are entering an era in which forms of potentially destructive power without limits are strong enough to neutralize, circumvent or eliminate any democratic process that seeks to put limits on them.

Global techno-fascism: Elon Musk

At the beginning of the 20th century, we saw that the struggle for peace and the peaceful resolution of conflicts saw sovereign states as the units of analysis and the privileged political actors. We know that sovereignty was an abstract good that only the most developed countries could really enjoy, and that much of the world was subject to colonialism or the tutelary influence of Europe. Today, however, technological development, neoliberal globalization and the concentration of wealth mean that the power to control human and non-human life is no longer subject to democratic scrutiny. At the beginning of the 20th century, the illusion of peace was based on the rise and strengthening of democratic governments. After all, democracy was based on replacing enemies to be defeated by war with political opponents to be defeated by voting. Hence the mobilizing capacity of the fight for suffrage. For many, democracy had the capacity not only to promote the peaceful resolution of conflicts, but also to regulate capitalism in order to neutralize its “excesses”.

Today, most national governments consider themselves democratic, but democracy, if it was ever capable of regulating capitalism in any country, is now strictly regulated by it, and is only tolerated insofar as it is functional for the infinite expansion of capitalist accumulation. Undoubtedly, the most powerful national states continue to exercise formal power, but the real power that controls their decisions is concentrated in a very small number of plutocrats, some with their faces blatantly visible, others, the majority, faceless. Real power is enhanced to an extent that is hard to imagine by a toxic fusion of the technological capacity to control the human life of vast populations down to the smallest detail and regardless of their nationality, with the financial capacity to buy, co-opt, blackmail or obliterate any obstacle to its purposes of domination.

This is a new kind of fascist power, a global techno-fascism that knows no national boundaries. Elon Musk is the metaphor for this new type of power. Unlike Adolf Hitler or Benito Mussolini, Musk’s specific personality, although repugnant, is of little importance, since what matters is the power structure that he commands today and that tomorrow may be commanded by another individual. The strength of this new global techno-fascism is well expressed in the worldwide dramatization of the struggle of a relatively powerful national state against a simple foreign individual simply because he is a global techno-fascist. When, on August 31st of this year, the X network was suspended in Brazil by a decision of the Supreme Court because its owner refused to delete accounts on the network that reached millions of people and whose content spread fake news, seriously violated the most basic democratic values and incited hatred, violence and even murder, it was news all over the world. Was it imaginable ten years ago that a lone individual, and a foreigner at that, could afront a sovereign state?

Global techno-terrorism: from the Trojan Horse to killer pagers

On September 18th, thousands of pagers and walkie-talkies exploded in Lebanon, killing dozens of people (including children) and injuring thousands. These transmitters had been bought by Hezbollah apparently because they are secure devices that allow communications without locating the users. This terrorist act has been attributed to Israel’s secret services and its origin was the implantation of an explosive substance next to the battery, coded to explode by remote control.

The killer pagers are not just a new edition of the Trojan Horse, the huge hollow wooden horse built by the Greeks to enter Troy during the Trojan War. The horse was built by Epeius, a master carpenter and boxer. The Greeks, pretending to abandon the war, sailed to the nearby island of Tenedos, leaving behind the false deserter Sinon, who persuaded the Trojans that the horse was an offering to Athena (goddess of war) that would make Troy impregnable. Despite warnings from Laocoon and Cassandra, the horse was taken inside the city gates. That night, Greek warriors got off the horse and opened the gates to let the Greek army in. The story is told in detail in Book II of the Aeneid.

The similarity between the Trojan Horse and the killer pagers lies only in the fact that the term “Trojan Horse” has come to designate subversion introduced from the outside. The visibility and transparency of the device, embodied in an object that was not in common use, prevented it from being realistically reproduced (if ever) effectively in the future. On the contrary, killer pagers signify a qualitative change in the technology of war and population control. The same technology and the same murderous complicity that insidiously installed explosive material in these devices could tomorrow install in any other electronic device (cell phone or computer) any substance that, instead of killing, might damage the health, create panic or alter the behavior of its user, without any possibility of control by the user. With the development and spread of artificial intelligence, any everyday device can be used for this purpose, whether it’s a car or a microwave.

The international conventions against terrorism, which the Gaza genocide reduced to a dead letter, will no longer even make sense in the future when any citizen not fighting in any war is condemned to live in a society in which the most trivial act of consumption can bring with it, in addition to the guarantee and the expiry date, your death certificate, your certificate of mental insanity or your compulsion to commit a crime.

The international division of the labor of war and Cassandra’s curse

In an environment of global techno-fascism and techno-terrorism, Euro-North American capitalism is actively preparing to move from cold war to hot war. Faced with the blank or revoltingly impotent gaze of its citizens, a strange international division of the work of killing is being prepared: Europe will take care of beating Russia while the US will take care of beating China. At almost the same time, the European Union’s first defense commissioner, Andrius Kubilius, former prime minister of Lithuania, says that Europe must be prepared for war with Russia in 6-8 years, and a high-ranking US Navy officer declares that the US must be prepared for war with China in 2027.

There is little point in predicting that the war will take place, but that its outcome will be very different from what is imagined by these war entrepreneurs intoxicated by the think tanks financed by arms producers. Cassandra’s curse hangs over the few who dare to see what is obvious.


ZNetwork is funded solely through the generosity of its readers.  Donate



Boaventura de Sousa Santos is the emeritus professor of sociology at the University of Coimbra in Portugal. His most recent book is Decolonizing the University: The Challenge of Deep Cognitive Justice.

Sunday, September 15, 2024

Privatisation myth


Aasim Sajjad Akhtar 
Published September 13, 2024



BEYOND sensational late-night arrests of opposition MNAs, impunity for abductors and unending intrigue, there is a remarkable degree of continuity and consistency in how the Pakistani ruling class rules.

Working people and ethnic peripheries are of secondary importance to all who occupy the corridors of power; their primary concern is to appease big creditors and foreign investors.

Which is why former finance minister Ishaq Dar’s unveiled dig at the IMF is somewhat amusing. Let’s be honest: all bourgeois parties seek only to secure a share of the piece in the debt-ridden, militarised structure of power, so much so that policymaking is akin to farce. Whoever is in the seat of government reproduces the same tired economic policy prescriptions. There is no bigger example of this than the privatisation mantra.

The present turbo-charged hybrid regi­­me has followed the previous one in depicting privatisation of ‘sick’ state-owned ent­erprises as a panacea for our economic woes, an initiative, Mr Dar should be rem­inded, is entirely consistent with the IMF’s agenda.

The argument is simple: SOEs offer poor quality services while draining the public exchequer, so sell them off to the private sector and all will be well.

PIA is at the top of the chopping block. But there are many government departments either slated for sale or touted for a rechristening. Take PWD for example, which is to be abolished and replaced by a new infrastructure authority which will likely be a handmaiden of FWO. There are dozens of other public institutions that will, to use established policy-speak, be downsized or rightsized.

Privatising SOEs has been presented as a cure to our economic woes.

Let’s start with big fish like PIA. While airline travel is not the best example of truly public transport, it is nevertheless true that PIA used to offer highly subsidised fares to destinations like Gilgit and Gwadar.

Did this represent a burden on the public exchequer? It did, but then public services are not supposed to be subjected to the logic of profit-maximising capitalist firms. More generally, PIA’s performance and finances have not nosedived because it is state-owned; it can be argued that its financial plight is at least partially explained by the short-termism of the highly paid foreign consultants and executives hired over the past two decades precisely to fix the airline’s woes.

In the case of Pakistan Railways, financial woes are even easier to trace: until the 1980s, PR had a monopoly on freight traffic. In 1982, the National Logistics Cell was created, and a road-building frenzy was initiated that continues to this day. The NLC has now totally displaced PR in freight. The Railways’ passenger service was always subsidised by its cargo revenues.

Moving on to PTCL: when the enterprise was forcibly privatised under the Musharraf dictatorship, it was one of the most profitable enterprises in the country. In almost 20 years since, there has neither been a marked improvement in PTCL’s services, nor has its share value recovered to what it was in 2005. Arguably, the most notable fact is that it was sold to Etisalat, the UAE’s state-owned telecom company.

I could give more examples — of private sector IPPs that have run riot in the power sector, or local commercial banks that dole out cheap credit with reckless abandon, fuelling conspicuous consumption in cars and real estate, thus reinforcing jobless growth that accompanies the ‘privatise everything’ mantra loved by both our own economic czars and omnipotent creditors.

But I will save the last word for the long-suffering ethnic peripheries, where a hybrid privatisation of land, forest, water and minerals — a true enclosure of the commons — takes all ma­­nner of hybrid forms, depriving indigenous populations of even a modicum of the benefits of what our rulers call ‘development’.

Reko Diq, Saindak, Gwadar, Sindh’s coa­stal islands, Thar, the mountains of Gilgit-Baltistan, the Pakh­tun tribal districts, Swat, Dir, Kohistan and so many more are literally up for grabs: the nexus of foreign firms, the establishment and local big men pillage at will, sometimes by signing formal contracts and at other times through sheer gangsterism.

The case of Reko Diq is astonishing — a reckless contract award to one multinational company resulted in a fine of $6 billion, only for the government to turn around and promise a concession for the mine to another multinational company.

They call it privatisation to make it sound like the state and private sector are somehow at odds. In fact, both are engaged in what Marx called primary accumulation, an inherently violent process that is becoming more brazen by the day. Neither our own ruling class nor its foreign patrons have any interest in taming the particularly exploitative and brutal nature of the beast that is Pakistani capitalism.

The writer teaches at Quaid-i-Azam University, Islamabad.

Published in Dawn, September 13th, 2024

Friday, September 13, 2024

 International situation

State of the world: economic crisis and geopolitical rivalries

Monday 9 September 2024, by Claude Serfati

My interpretationof the current situation is based on the hypothesis that the global space is being transformed under the dual pressure of economic dynamics and geopolitical rivalries, the interactions between which differ according to historical circumstances.

Bringing these two dimensions together and keeping them in mind in the analysis is difficult for two reasons. On the one hand, disciplinary hyper-specialisation in academic research leads to compartmentalisation of thinking and ignorance of work on similar themes. Secondly, there is what might be called a certain Marxist ‘bias’ which has privileged economic dimensions on the grounds that they constitute the ‘infrastructure’ of any society. Yet Marx was at least as interested in the ‘superstructure’ and the role of human beings in the course of history. ‘The 18th Brumaire of Louis Bonaparte’ is a good example of his interest in these questions. And I would remind you that ‘Capital’ is not an economic work, but a critique of political economy.

However, there is an analytical framework for analysing these interactions between economic dynamics and geopolitical and military rivalries: it is the one proposed more than a century ago by Marxist analyses of imperialism.

To understand the current situation, and in particular hierarchical capitalist multipolarity, we have at least two theoretical points of support.

Firstly, the definition given by Lenin in “Imperialism, the Highest Stage of Capitalism’: ‘If it were necessary to give the briefest possible definition of imperialism we should have to say that imperialism is the monopoly stage of capitalism.’ This definition would cover all the essentials, for, on the one hand, finance capital is the result of the fusion of the capital of a few large monopoly banks with the capital of monopoly groups of industrialists; and, on the other hand, the division of the world is the transition from colonial policy, extending unhindered to regions which have not yet been appropriated by any capitalist power, to the colonial policy of monopolised possession of the territories of an entirely divided globe.

Financial monopoly capital and the division of the world are closely linked, and this is the singularity of imperialism. Admittedly, Marxist analyses have often had difficulty in linking the two. But capitalism walks on two legs: it is a regime of accumulation with a predominantly financial component, as Chesnais has been pointing out since the 1990s, but it is above all a regime of social domination, whose defence is ensured by the police (internally) and the army (externally), and even, at times, allow its survival. These are the messages in ‘La mondialisation armée’, a book I published a few months before 11 September 2001, and also in ‘Un monde en guerres’, published in March 2024.

Another analytical tool for analysing contemporary imperialism is Trotsky’s hypothesis of combined and uneven development. For me, this hypothesis is an integral part of the analysis of imperialism, even if for many ‘Marxologists’ his name is often ignored as a theorist of imperialism alongside Bukharin, Hilferding, Luxemburg and a few others.

Trotsky based his analysis on the existence of a global space that constrained nations and prevented them from going through the same stages of development as the advanced countries. This was the opposite of Stalin’s ‘stagist’ approach. This concept of successive stages can also be found in the recommendations of the World Bank, which considers that the countries of the South should follow the development stages followed by the countries of the Centre. For the World Bank, the rules of good governance and the economic programme of the developed countries must be put in place.

Trotsky reminds us in the ‘History of the Russian Revolution’ that ‘Under the whip of external necessities, backward life is forced to advance by leaps and bounds. From this universal law of unequal rhythms flows another law which, for want of a more appropriate name, may be called the law of combined development, in the sense of the coming together of various stages, the combination of distinct phases, the amalgam of archaic forms with the most modern’. And he goes on to say of Tsarist Russia that ‘it did not go through the cycle of advanced countries again, but rather became part of it, adapting the most modern results to its backward state’. In my view, this characteristic of Tsarist Russia a century ago is fully applicable to contemporary China, albeit in a different context.

The hypothesis of combined and uneven development is a hypothesis that looks at changes and mutations, in other words, it looks at the transformation of capitalism. It invites us not to take a static view of the criteria used by Lenin to define imperialism - none of which are obsolete - but to take into account the changing face of imperialism. Today, imperialism remains a structure of world domination, and it also continues to define the specific and differentiated behaviour of a few major powers.

It is an undeniable fact that there have been many changes in the physiognomy of imperialism since the Second World War, in particular the construction of US hegemony. These changes led some Marxists to announce the obsolescence of imperialism, based in particular on the end of inter-capitalist wars. Over the last few decades, the processes of globalisation have also given rise to claims that imperialism has been overcome by the emergence of a transnational capitalist class, or even a transnational state.

The current historical conjuncture contradicts these analyses and underlines the fact that within the framework of contemporary imperialism, capitalist social relations remain politically constructed and territorially circumscribed.

A concordance of temporalities: the 2008 moment

Three points are worth mentioning:

a) Since the end of the 2000s, the global space has been characterised by a convergence of crises. I use the term crises for want of a better term, because each of them has its own temporality, determined by its economic, geopolitical, social and environmental specificity. However, the fact that they converged at the end of the 2000s confirms that capitalism is facing an existential upheaval, a multidimensional crisis. We might mention:

 the 2008 financial crisis, which turned into a ‘long depression’ (M. Roberts).
 the emergence of China as a ‘systemic rival’ to the United States (in the language of US strategic documents). This is another way of seeing the decline of US hegemony;
 the spiral of environmental destruction produced by the capitalist mode of production and consumption;
 the social resistance that has spread across the planet since the Tunisian revolution of 2011, crying out for ‘Work, bread, freedom and dignity’.

The efforts of the dominant classes to overcome these crises can only accelerate the march towards catastrophe and barbarism.

b) A major characteristic of this 2008 moment is that it re-establishes a close proximity between economic competition and politico-military rivalries. As I mentioned earlier, this proximity was already a feature of the pre-1914 situation.

c) The 2008 moment opens up an area of global rivalry that is broader than the East-West confrontation of the Cold War era, and not that of a ‘Western’ world pitted against the ‘Global South’. My framework of analysis is that of a hierarchical capitalist multipolarity and therefore of inter-imperialist rivalries. These rivalries seem new after the transitional period of overwhelming US domination that followed the Second World War, but they were a major feature of the pre-1914 era.

However, in the space of a century, the world has become much denser. As a result, rivalries are more open, with a greater number of countries aspiring to play a role in a global economy marked by the formation of regional blocs. Rivalries are also taking more diverse forms than they did before 1914. They establish a continuum between economic competition and military confrontation, including what some experts call ‘hybrid wars’ (cyber-warfare, disinformation and surveillance and so on).

I would point out, however, that although the hierarchy and status of imperialisms were more limited, they were already under discussion before 1914. [1] It is interesting to recall Trotsky’s characterisation of Tsarist Russia in his ‘History of the Russian Revolution’. He wrote: ‘Russia’s participation was of an ill-defined nature, intermediate between the participation of France and that of China. Russia thus paid for the right to be the ally of advanced countries, to import capital and to pay interest on it, in short, the right to be a privileged colony of its allies; but, at the same time, it acquired the right to oppress and despoil Turkey, Persia, Galicia, and in general countries weaker and more backward than itself. The equivocal imperialism of the Russian bourgeoisie had, in essence, the character of an agency in the service of greater world powers’.

This ambiguous status of Russia obviously did not prevent Marxists from placing Russia on the side of the imperialist countries. This flexibility of analysis and the taking into account of multidimensional factors - economic, political and military - makes it possible to account for the diversity and hierarchy which characterise capitalist multipolarity. For example, following on from the work of the Brazilian sociologist Ruy Mauro Marini, some Marxists today use the term ‘sub-imperialism’ to describe a more or less long list of countries (South Africa, Brazil, India, Iran, Israel, Pakistan, Turkey and so on) which find themselves in an intermediate position.

In a way, then, capitalist multipolarity is the historical norm. It is hierarchical, and the dominant imperialisms, whether declining or emerging, are fighting for a slice of the global cake (the mass of value created by labour), which is not only no longer growing sufficiently, but also requires gigantic environmental degradation in order to be produced. The aspiration of emerging countries to achieve the status of regional or global power is widening the scope of economic and military rivalries. These emerging countries are not anti-imperialist; on the contrary, they are trying to carve out a place for themselves within contemporary imperialism. The governments of these countries often develop anti-Western rhetoric that is falsely equated with anti-imperialism.

The social movement must obviously take advantage of inter-imperialist rivalries and contradictions. However, in the name of ‘anti-Western multipolarity’, this must never lead to support for the governments of countries such as Russia, Iran or India, and thus give the impression that they could open up emancipatory prospects for the peoples who are the victims of capitalist exploitation, even though they are harshly repressing their own people.

China-US: a clash of imperialisms

In my view, it is these transformations of the world space that justify the term ‘clash of imperialisms’ between China and the United States.

We need to look briefly at how their relationship has evolved, because it confirms that interdependence between rival countries has grown considerably. Before 1914, interdependence was used to justify the liberal theses which saw international trade as a factor for peace. Interdependence was also used by Kautsky to herald the emergence of an ultra-imperialism that would put an end to wars.

It is clearly important not to make the same errors of assessment, and therefore not just to observe the growing interdependence of nations, but to consider the economic and geopolitical environment in which it is developing.

In the 1990s and 2000s (up to 2008), interdependence between the United States and China was a ‘win-win’ game for the capitalist classes. China provided new territories for Western capital, which was then suffering from over-accumulation following the crisis of the 1970s and 1980s. This crisis of over-accumulation, which reflected a fall in the profitability of capital, had not been overcome in the central countries. On the other hand, it had shaken the emerging countries, which were the repeated victims of financial crises: Mexico in 1983, Asia, Russia and Brazil in 1997-1998, and Argentina in 2000.

However - confirming the hypothesis of combined and uneven development - China has not only remained a host territory for the accumulation of Western and Asian capital, it has also become an economic and military power that is challenging US domination.

China’s emergence on the world market thus provided a temporary solution to the structural ills besetting capitalism. However, the intensification of economic competition in a context of low economic growth has rapidly transformed the world market into a ‘place of all contradictions’, as Marx put it. Conversely, by becoming the ‘workshop of the world’, the Chinese economy has passed on to its own territory the contradictions in the global economy that arise when capitalism reaches its limits. Chinese industry has been over-accumulating capital for years. The crisis was first triggered in property construction, but according to economists’ analyses, this over-accumulation is now affecting dozens of traditional construction-related sectors (steel, cement, etc.), and even emerging industrial sectors. This is the case with solar panels, where China has conquered a virtual world monopoly, and more decisively with the battery sector for electric vehicles. So it’s hardly surprising that this sector is one of those experiencing the greatest trade tensions between China and the United States and the European Union (i.e. mainly German industry).

Economic interdependence therefore has contradictory effects. China’s economic growth must not be incompatible with US economic leadership, declared the Secretary of State for the Treasury, and she proposed relocating the activities of major US groups present in China to ‘friendly countries’ (nearshoring). [2]

Let’s listen to the response from the CEO of RTX (formerly Raytheon), designer of the US and Israeli missile defence system and the world’s second largest military group: ‘It’s impossible to leave China because we have hundreds of subcontractors who are essential to our production’. This says a lot about the degree of interdependence built up by the global production chains of major groups, including those with military specialisations.

Another example of interdependence: the Chinese government is now involved in drawing up prudential rules for the financial markets, which were introduced in the wake of the 2008 crisis and are designed to prevent the emergence of new financial crises. The US Secretary of International Finance strongly welcomed the excellent relationship between the US Treasury and ‘our Chinese counterparts at the Central Bank of the People’s Republic of China as co-chairs of the G20 working group on the development of sustainable finance’. This call from the US to China means that, for the US ruling classes, preserving the stability - and therefore the prosperity - of financial capital must not be compromised by trade rivalries. It is, however, a fragile balance.

China, an emerging imperialism

China is an emerging imperialist country because, like the capitalist countries before 1914, it combines strong economic development with first-rate military capabilities.
Of course, it would be absurd to compare the role of the military in China’s global economic expansion with that of the United States, and only those who apply the concept of imperialism solely to the ‘US model’ can do so. Conversely, because it is emerging as a rival imperialist to the United States, China is almost automatically compelled to develop an expansive foreign policy, as confirmed by its diplomatic insertion in the war being waged by Israel. China already has a strong presence in the Middle East, where it is developing relations with both Iran and the oil monarchies (and Israel), allies of the United States.

China’s Belt and Road Initiative (BRI) is a sprawling construction of physical and digital infrastructure. It is reminiscent of the expansion of railways before 1914 - the essential infrastructure of the time - in the dominated countries, whose role both economic (to make the excess capital in European countries profitable) and geopolitical (the role of the Berlin-Baghdad train in the alliance between Germany and the Ottoman Empire!) was analysed at length by Lenin, Luxemburg and others.

Israel, the arsonist defender of the transatlantic bloc

Israel’s war is fully in line with the analytical framework of imperialism: it is a neo-colonial project. Let’s look at the figures: 40,000 dead in Gaza is equivalent, in proportion to the Palestinian population, to more than half the number of deaths in France caused by the 1914-1918 war. There is, however, one essential difference: most of the victims were soldiers, whereas in Gaza 60-70% of those killed were women and children.

‘Our common enemies throughout the world are watching us and they know that an Israeli victory is a victory for the free world led by the United States’, declared Israel’s Defence Minister the day after 7 October 2024. He thus confirmed that his country is a major pillar of the transatlantic bloc. However, the way in which the Netanyahu government is behaving towards the Biden administration also confirms that contemporary capitalist multipolarity is more diversified than it was before 1914.
From the point of view of the analysis of the current imperialist structure and its hierarchy, it is undeniable that the Israeli government would be forced to stop the war as soon as the USA stopped its arms deliveries. [3] In this sense, the image of Israel as a ‘vassal’ of the United States no doubt remains accurate. However, the deterioration in the position of the United States in the world order, the rise of Israeli militarism, largely connected to dominant sections of the US establishment and its ‘Military-Industrial Complex’, and finally the global chaos that underpins contemporary international relations, allow the vassal to play his own game without it corresponding to the immediate imperatives of the US dominant classes.

The ‘scorched earth’ policy pursued by Israeli governments is no longer just an image, as shown by Israel’s desire to raze Gaza to the ground (i.e. to level the territory to ‘ground zero’) and to physically pulverise the Palestinian people. It is based on murderous - genocidal - processes that neither the United States nor the European Union, which is at least as guilty of supporting Israel’s war as the United States, want to stop, even as Israel prepares the next stage of its attack on Iran. For the leaders of the United States and the EU, unconditional support for Israel is the price to be paid for defending the material interests and values of the ‘Western world’.

Yet all Western leaders know that this war is bringing the region - and possibly other regions - to the brink of collapse. They also know that it is accelerating the disintegration of the ‘rules-based international order’, to use the slogan that has served as the political and ideological underpinning for the domination of the transatlantic bloc since the Second World War. This is the dilemma facing the West. They must support the conduct of the Israeli government at a time when Netanyahu’s policy is precipitating the end of this ‘liberal international order’ and thus heralding new areas of conflict between the transatlantic bloc and many countries.

France’s Indo-Pacific horizon

Announced in 2013 under the presidency of François Hollande, the Indo-Pacific horizon has taken an ascendant place in France’s military-diplomatic strategy since the election of Emmanuel Macron as president in 2017. Macron’s interest in this region was undoubtedly stimulated by the fact that, as soon as he was elected, he had been informed by the General Staff of the disaster looming in the wars waged by the French army in the Sahel. The Indo-Pacific strategy put forward by Macron is therefore the result of the need to offer the military a new horizon, even if sub-Saharan Africa remains indispensable in economic and geopolitical terms despite the Sahel debacle.

Macron’s determination to keep New Caledonia within the French state is therefore primarily due to this setback in the Sahel, but there are other reasons too. Possession of these territories gives France an exclusive economic zone (EEZ) twenty times larger than that of mainland France. This EEZ offers prospects for the appropriation of undersea resources. Above all, it allows the French army to operate nuclear-powered ballistic missile submarines. Alongside the French Air Force, these vessels are the other component of the nuclear deterrent. This presence of nuclear forces in the Pacific protects France’s status as a permanent member of the United Nations Security Council, despite the considerable decline in its economic position in the world. Another reason for Macron’s policy is the importance of the archipelago’s nickel resources.

Macron’s determination to deprive the Kanak people of their legitimate rights and to maintain the neo-colonial status of New Caledonia is therefore understandable if we take into account all the advantages offered to the French economy and diplomacy. However, its negative effects must be measured, even beyond the repression suffered by the Kanak people, more than ten of whom have died. Macron’s decisions have in fact provoked a social explosion in New Caledonia on a scale not seen since the 1980s, which testifies to the scale of popular resistance. What’s more, the bloody repression of these demonstrations is damaging the image of the so-called ‘homeland of human rights’ among the people of the Pacific region, and complicating France’s diplomatic activity.

Like the interventions in the Sahel in 2000 and 2010, the deployment of 3,000 troops relies on the military apparatus. Macron is seeking to bolster his wavering power and appeal, through this neo-colonial project, to the reactionary metropolitan electorate on the right and far right in France. From a certain angle, Macron’s determination is reminiscent of what happened in Algeria at the end of the 1950s. The position of the fascist faction of the army, supported by the majority of the European population, was to keep Algeria within France. In their view, this was the only way to maintain France’s ‘greatness’. In contrast, De Gaulle, also a military man, advocated ending the war against the Algerian people and granting them independence in order to maintain what he called ‘France’s standing in the world’. In his view, leaving Algeria would finally enable France to turn its attention to the world, thanks to nuclear weapons, the construction of a Europe in which France could project its power, and an industrial revival based on major technological programmes with military and strategic aims. It was, of course, this Gaullist ‘vision’ of an imperialist France that prevailed over the withdrawal into Algeria. The fact that Macron is sending three thousand soldiers to protect 73,000 Europeans in New Caledonia (out of the island’s 270,000 inhabitants, according to INSEE figures) shows the extent to which the wheel of history has turned for France’s place in the world. Macron’s policies can only encourage nationalist and chauvinist impulses in mainland France, which are a breeding ground for racism.

To conclude, as I suggested in my speech, the transformations of capitalism cannot be read from its structural determinants alone. Marx’s remark in ‘The 18th Brumaire of Louis-Napoleon’ that ‘Men make their own history, but they do not make it as they please; they do not make it under self-selected circumstances’, underlines the importance of what in Marxist literature are called ‘subjective factors’. These include the behaviour and actions of the ruling classes and governments - as well as the resistance and offensives waged by hundreds of millions of individuals who are the victims of decisions taken by ‘those above’ ‘History does nothing, […], it wages no battles. It is man, real, living man who does all that, who possesses and fights.’ (Marx and Engels, ‘The Holy Family’).

• Claude Serfati teaches at the Université de Versailles Saint-Quentin. This was his contribution to the 16th Summer University of France’s Nouveau Parti anticapitaliste (NPA), held from 25-28 August 2024.

Footnotes

[1See for example the different classifications made by Lenin in ‘Imperialism, the Highest Stage of Capitalism’ (and in his preparatory ‘Notebooks on Imperialism’).

[2US Department of Treasury 2023, Communication of Janet L. Yellen, Johns Hopkins School of Advanced International Studies, April 20, https://home.treasury.gov/news/press-releases/jy1425

[3On 25 August 2024, the Israeli defence minister boasted that since the beginning of the war ’50,000 tons of military equipment have been delivered to Israel by 500 planes and 17 ships’.