Marxism and the Economic Crisis

Most explanations of the US-led global economic crisis in 2008 argue that it began with a financial meltdown triggered by the subprime mortgage crisis and bursting of the housing bubble from 2006 onwards. This paper, using Marx’s Capital and other Marxist writings, argues the opposite: that financial turmoil was just one symptom of the profound crisis into which the US economy had been sinking for years, transmitted to the rest of the world primarily through the use of the US dollar as world currency, and secondarily through the globalization of the world economy. 

The Price of Truth-Telling, the Price of Lying, and the Need for Monitoring

Last week, Rajan Hoole of University Teachers for Human Rights (Jaffna) (UTHR(J)) accepted the Martin Ennals Award for human rights defenders on behalf of UTHR(J), his colleague K.Sritharan, and himself.

Many of us who had been following their writings from 1987 onwards were overjoyed when the Martin Ennals Foundation finally gave them the recognition they so richly deserve. Like a compass, their reports have provided direction to seekers of justice and peace in Sri Lanka’s political wilderness. They have been able to play this role because of their single-minded dedication to discovering and publicising the truth. They have not been content to report the atrocities perpetrated by the Sri Lanka state security forces, but have also taken up violations by the Indian Peace-Keeping Force (IPKF) and associated groups, the Liberation Tigers of Tamil Eelam (LTTE), and other armed Tamil groups. Nor did they stop at criticising abuses against Tamils, but protested equally strongly against abuses directed at Muslims and Sinhalese.  

Tribute To My Father

 

The twenty-fifth anniversary of Back July 1983 is an appropriate time to remember my father, C.R. (‘Dick’) Hensman, who died peacefully on 9 July 2008. At that time, under the pseudonym L. Piyadasa, he wrote a book – Sri Lanka: The Holocaust and After (published by Marram Books in 1984) – which documented and analysed the events not only of that fateful day but also of the periods preceding and following it. This was one of the first publications to expose the shocking evidence of government sponsorship of the violence, and involvement of people at the highest levels of power in what would today be classified as crimes against humanity.

The analysis was continued in a sequel, Sri Lanka: The Unfinished Quest for Peace, (Marram Books, 1987), published following the Indo-Lanka Accord of 1987. What was striking was that it attributed the violence not to widespread inter-ethnic hatred but to the drifting of the Sri Lankan state towards fascism. It was made very clear in both books that the solution was not a separate Tamil Eelam, which would inevitably suffer from the same authoritarian and exclusivist politics as the proposed Sinhala Buddhist state, but a Sri Lanka where people from all ethnic and religious communities could live in any part of the island in security, dignity and peace. His message remains as relevant today as it was then.

Democracy as the Solution to Sri Lanka's Ethnic Crisis

The political Right and Left seem to concur in linking democracy to bourgeois rule; the two concepts have even been hyphenated in the adjective ‘bourgeois-democratic’. Yet history gives us no reason to believe that there is a necessary connection between the two. It is true that when the bourgeoisie is fighting against feudal power to establish its rule, it seeks the support of the plebeian masses, and in the process allows them to fight for their own demands: hence the famous slogan of the French Revolution, ‘Liberty, Equality and Fraternity’. Yet once their rule is established, they are quite capable of turning on their erstwhile allies, repressing or even slaughtering them. This is not to say that capitalism is incompatible with democratic rights and freedoms either, but to emphasise that the latter will prevail only if working people fight to establish and defend them. Even in advanced capitalist countries, long-established rights can quickly be demolished. Social-Democracy in Germany was followed by fascism, and even today, democratic rights are under attack in the heartlands of capitalism.

In the former colonies, there was likewise a popular movement for liberation from imperialism, often followed by a sense of disappointment when independence was won but the working masses remained in much the same condition as before. Again, the illusion that democracy is the free gift of the bourgeoise, or a necessary condition of their rule, is responsible for this disappointment. Alternatively, there has been a tendency, shared by both Maoists and Trotskyists, to deny that a bourgeois revolution has taken place or that capitalism is developing. A more realistic view would be to recognise that for the working class, independence from colonialism is only the first of many battles for democracy.

Women Workers and Neoliberalism

Book review of Women Workers and Globalization: Emergent Contradictions in India, by Indrani Mazumdar, Stree, Kolkata, for Centre for Women’s Development Studies, Delhi, 2007. xxiv + 349 pages.

The bulk of this book consists of four sectoral studies of women workers in Delhi and its satellite townships of Noida and Gurgaon, through a combination of structured questionnaires and individual and group discussions conducted in 2002-2004. 

Fine-Tuning the Linkage Proposal: Commentary

A cross-country comparison which finds ‘Strong evidence that countries with open trade policies have superior labor rights and health conditions and less child labor’ (Flanagan 2004: 26) suggests that openness to the world economy does not undermine workers’ rights and may even enhance them. However, the finding that in any particular country openness to the world economy can go with high labour standards is not incompatible with the proposition that globalisation as a process undermines labour rights globally.

One process by which this could and does take place is by the transfer of production from countries with higher labour standards to countries with lower standards, leaving workers in the former unemployed. Thus in developed countries, jobs in the labour-intensive textile and garment industries have been decimated as production shifted to developing country export sectors (Williams 2004; Narendranath 2004). This has also caused job losses in developing countries, when production moved from higher-wage countries like Korea to lower-wage ones like Cambodia. Outsourcing in the service sector led to further transfer of employment from developed to developing countries, leading to calls for a curb on outsourcing in the US (Alden 2004).

A less obvious, more insidious way in which labour standards are undermined is by the spread of low labour standards to countries which did not formerly suffer from them, or at least not to the same extent. The global expansion of informal labour – workers who do not have any formal employment contract with an employer and therefore are extremely vulnerable to abuse – is a case of this. Informal labour was always preponderant in India, but the expansion of homeworking, sweatshops, and the hiring of workers through intermediaries (‘labour contractors’, ‘agencies’, ‘gangmasters’ and so on) in countries which were formerly free of these problems (Mather 2005) has caused serious concern within the ILO in the 21^st century (ILO 2002).

In this context, the publication of International Trade and Labor Standards, with its carefully crafted proposal for a linkage between trade and labour standards that is both feasible and capable of stopping the downward pressure on labour standards, is of great importance. The authors have taken up objections to linkage in a step-by-step manner in order to formulate a proposal that meets almost all the arguments against it that are commonly put forward. This paper is an attempt to strengthen it by tackling some of the few remaining weaknesses.