GLOBALISATION: A new stage of capitalism

Representatives of communist and workers parties from 55 countries 
participated in an international conference in Athens from May 21-23 on the 
theme "the capitalist crisis, globalisation and the response of the labour 
movement".* The following are edited extracts from the paper given by Dr 
Mufid Kuteish, Vice-President of the National Council of the Lebanese 
Communist Party.

Our conference is taking place on the eve of the third millennium at the 
time of major and minor dramatic events: the war waged against Yugoslavia 
by NATO; the war declared against Iraq; regional and local conflicts.

Despite all the possible arguments and justification of the above-mentioned 
wars, as well as efforts aimed at reshaping international public opinion in 
support of these wars, they have been strongly condemned by the 
international society.

In order to evaluate the present situation and predict the possible course 
of events, it is necessary to analyse the essence of them, to consider the 
new stage in the world capitalist system — globalisation — and to reveal 
the essence of the economic and political orientation.

What we are witnessing today is the process of new life being injected into 
the world capitalist system, transition to a new stage of its development 
in the direction of setting up monopolies on the basis of the law of 
capital and industrial concentration, the monopoly stage.

The present stage of capitalist development must be treated as the direct 
continuation of the first stage investigated by Marxism in the 19th century 
and V I Lenin at the end of the 19th and beginning of 20th centuries.

The present stage is characterised by the following features:

* transition of the whole world into a single industrial area without 
boundaries, with full freedom of movement for merchandise, workforces, 
services and capital;

* a global capitalist economy aimed above all at extracting the maximum 
possible surplus value and amassing capital;

* modifications to the laws of capitalism in order to re-adjust them to new 
conditions.

World without boundaries

In our opinion, globalisation is a new stage in the development of the 
world capitalist system, the essence of which can be defined as the 
globalisation of surplus value and capital extraction; integration of 
production relations on the international scale, i.e. in a world without 
boundaries where production loses its national distinctions.

The implementation of this process is carried out by global capital that is 
represented in numerous multinational corporations under the control and 
leadership of US capital.

This process presupposes transfer of foreign direct investment, production 
and technology to different countries of the world.

This stage is viewed as the logical continuation of the previous stages in 
the development of the world capitalist system.

It modifies the action of the laws of capitalism and its characteristics, 
sharpening the inner contradictions of the capitalist system.

It is an objective and logical process of the capitalist development since 
it reflects objective interests, natural consequences of the development of 
the capitalist contradictions and their new forms at the present historical 
stage.

Driving forces of globalisation

The driving forces of globalisation are the three leading capitalist 
centres: the USA, Europe and Japan, represented by the G7, multinational 
corporations, international financial and trade organisations (IMF, WB, 
etc), regional organisations (EU, NAFTA, etc), the organisations of world 
trade, well-known and eminent figures (e.g. George Soros) and the military 
block of NATO.

It would not be an exaggeration to say that owing to its economic and 
military power, the USA is undoubtedly the leader in this bloc and its 
dominance is unquestionable.

They seek to reinforce their position, to ensure, to preserve and to 
strengthen their world leadership through penetration into their zones of 
interest.

Their ambition is clear cut, they strive to avert any threat to their 
policies, to eliminate all obstacles in the way of their capital and goods, 
introducing and advertising the American way of life and its values.

Their efforts are aimed at acquiring the position of the "engineer" of the 
new world order or of the centre of the world economy.

The fact that the USA owns 65 per cent of the world information data makes 
it possible for it to impose not only its economic and political but also 
cultural dominance and hegemony in the world.

The world globalisation process is being directed by the leading G7 
countries due to their power and dominance.

The G7 control the main part of foreign direct investments.

International organisations have been granted the right to manage and plan 
the globalisation process, to set up the terms for other countries to 
receive investments, credits and financial aid.

Multinational corporations are regarded as a driving force of the 
globalisation process at different levels.

National governments are obliged to work out their economic direction and 
regulations in support of these corporations and their policies.

Needless to say that it is these corporations who decide how much, when and 
where certain investments are to be made, what technology and production 
occurs, and what goods are imported or exported.

Forty per cent of the world's total GDP belongs to the leading 500 
corporations.

For instance, the sales of General Motors exceed the total combined GDP of 
Switzerland, Pakistan and South Africa.

These 500 corporations control the trade of natural resources including 90 
per cent of wheat, coffee, corn, tobacco, wood, and metals; 85 per cent of 
copper; 80 per cent of tin; and 75 per cent of banana, rubber and oil 
sales.

Financial markets are controlled as well by the same 500 corporations, 
which are considered to be an extremely influential force on questions of 
financial policy-making, as their financial reserves exceed the total 
financial reserves of all world central banks taken together.

Impact on people

It is not accidental that capitalist development has aggravated and 
sharpened a great number of problems of world character.

The extensive industrial development and exploitation of natural resources 
has caused a severe resources and pollution crisis.

Moreover, despite the visible successes achieved by the leading capitalist 
countries during the post-war period, conflicts have not disappeared.

We would remind you of the crises of the '70s, '80s and '90s.

The successful post-war development did not lead to stable economic growth 
that could ensure a solution to the unemployment problem. Unemployment is 
estimated at 35 million people in the leading capitalist countries.

The contradictions between labour and capital are still basic and we are 
reminded of them by frequent strikes and demonstrations, as well as a 
constant increase in the number of people living below the poverty line.

There is a visible effort here being made by capitalists to reduce 
production costs by means of neglecting the implementation of social 
programs, ignoring their social obligations and putting into practice the 
theory of labour market flexibility.

Though there has been a recent tendency to reconsider and modify the social 
policy being pursued by the bourgeoisie, it is done only with the aim of 
increasing competitiveness.

The conclusion seems hard to escape that bourgeoisie intends to solve all 
of the problems at the expense of people in both developed and developing 
countries. And this is guaranteed by the world globalisation process.

Thus, globalised capital strives to fight for cheap workforces, and 
penetration of natural resources and commodities markets while trying to 
avoid ecological crises.

All of these measures help companies to relieve the main contradiction by 
means of extension of its boundaries, the sharpening and deepening of 
exploitation, globalising not only the crisis of the capitalist system but 
enlarging the number of new members of the system as well.

Globalisation for developing countries has a unique meaning: the end of the 
epoch of aid, support and concessions, the bulk of which has been made for 
the sake of supporting of certain forces that were in opposition to 
socialist trends.

It has been recommended that the policy of support be substituted at the 
present stage by the creation of an investment climate that can attract 
overseas investments.

These measures form a set of stimuli for capital dominance with a limited 
and reduced role for national governments.

Needless to say, that provision of all of these conditions does not exert 
any pressure or impose any obligations on foreign investments.

It is globalised capital that will determine and monitor the investment 
quantity and the fields of investments.

Consequently, these measures and the world globalisation policy serve the 
interests of capital and have nothing to do with the national economic 
structure of the country where the investments are implemented.

Aimed at the implementation of its goals in the countries in question, 
capital is well "equipped" and takes advantage of the following 
instruments:

* using international organisations and establishments in order to impose 
their will on national governments (through financial terms and legal 
regulations including the policy of promises, threats, isolation and 
sanctions);

* shaping social opinion within these countries in support of their course 
by means of propaganda and persuasion of people that the course chosen by 
them will never give any positive results.

In other words, propaganda in support of globalisation presupposes 
reshaping of national mentality, injecting new alien images, ways of 
conduct, values, ideas and needs — a mental colonisation of people in 
developing countries;

* direct intervention into inner affairs of countries by means of military 
coup-detats, military interventions aimed at establishing conditions in 
favour of globalised capital under the pretext of safeguarding people's 
civil rights, rights of ethnic minorities, terrorism, etc.

Recent events in Iraq and Yugoslavia can serve as vivid examples of direct 
intervention into inner affairs.

The objective of the globalised capital to weaken and reduce the role of 
national governments, governmental bodies and establishments contradicts 
and endangers political independence and national sovereignty of the 
country, undermines the basis for the decision taking in accordance with 
the people's interests.

Oppose the power of capitalb

Today there is a new historical stage in the course of the struggle, as 
neo-liberal globalised capitalism forces the main part of mankind to live 
on the edge of poverty, in a situation of insecurity and anxiety.

But the results of progress and accumulated knowledge should not be put at 
the service of a limited group of greedy elite who threaten to destroy both 
humankind and nature.

It is high time we raised our heads after a temporary defeat, that we 
proceeded with our struggle to change the course of history.

It is high time we opposed the power of globalised capital.

It is today that we need more than ever solidarity among the peoples of the 
world, mainly among active forces in the communist vanguard to oppose the 
neo-liberal capitalism and its destructive plans.

It is time we consolidated to establish a globalisation of another type — 
new revolutionary, humane and democratic internationalism that can draw 
lessons from the past experience.

* * *

*A report on the conference was published in The Guardian on June 
2, and the Communist Party of Australia's contribution appeared in The 
Guardian of June 9.