India in the Contemporary world
4.1 The latest deep and continuing crisis originated with the financial crisis in the USA, the Eldorado of capitalism, leading to the collapse of more than a hundred banks and financial institutions, which by their very gigantic size and scale of operations were supposed to be incapable of collapsing. This was soon followed by an economic meltdown that spread to all countries of the capitalist world.
4.2 As is usual with capitalism, the entire burden of the crisis was shoved on to the shoulders of the working class and the common people, who were faced with closures, retrenchments, loss of jobs, cut in wages, pensions and other benefits earned through tremendous struggles and sacrifices, in every country.
4.3 The shockwave of the crisis could not but affect many other countries, which had only five or six decades back broken out of their colonial chains, but had adopted the capitalist path of building their economy and were in many respects bound to the economy of their old masters.
4.4 Countries which had moved away from capitalism and were engaged in building economy according to their own conditions, such as China had managed to avoid this crisis. But they" could not altogether escape the effect of the international links of trade and finance, which they had with the capitalist world.
4.5 India, a developing country following the capitalist path of development, and even adopting the neo-liberal prescriptions dictated by the IMF, World Bank and the Transnational Corporations, inevitably suffered from this crisis of world capitalism. But it was saved from its rigors and intensity due to the fact that its financial sector till then mostly in the public sector, and so were many of its strategic industrial and commercial undertakings. They could not indulge in the speculative financial maneuverings and skullduggery which the private players in the Developed West had been indulging in.
Neo-liberalism did contribute to a fast economic growth in India for some period measured in terms of GDP, but it led to tremendous economic disparities with dizzy heights of affluence at one end and depth of poverty at the other, together with disastrous consequences for the environment.
A section of middle class and intelligentsia, which has benefited from the economic growth and is dazzled by 'Shining India', is also influenced by such talk of 'Reform', ignoring the actual consequences. Actually this serves to camouflage the ideological, political and economic designs of American imperialism and International Finance Capital.
4.6 In the name of combating the economic crisis bourgeois governments in most countries doled out huge funds to the corporate firms. The bailout packages ran into billions and even to trillions of dollars in the US, U.K, France, Germany and Japan etc., in the name of stimulating the economy and reviving it. Corresponding deep cuts were made in the funds meant for the common people.
4.7 India too followed suit by doling out huge packages to the crisis hit corporate entities. That could not mitigate the widespread closures and the resultant unemployment in a number of industries in the country.
4.8 Even after the passage of few years the US economy- the largest in the world, is still not in the way of recovering from the depression. So also several countries of the developed West, the European Union in particular. The crisis has lengthened into a more or less permanent one. There is the Sovereign Debt Crisis. The US which is the most indebted country of the world, living like a parasite at the cost of others, finds it difficult to repay its loans. The dollar has lost some of its sheen. Though there have been talks of finding an alternative international currency, the very weight of its prestige and acceptability backed by US economic and military might has prevented any such cataclysmic move so far. It continues in its position by default.
4.9 National currencies, including the Indian Rupee are under tremendous pressure, and there is financial instability all round. Situation in the Eurozone is very serious. Greece, Portugal, Spain, Italy have to face the ignominy of inability to repay their loan commitments. Led by Germany and France the European Union imposed harsh austerity measurers on Greece to bail it out of its predicament. This is meeting with the stiffest resistance ever, bringing Greece to the brink of a revolutionary outburst. Other countries cut their welfare budgets meant for the working people.
The working class and also many sections of the middle class are not taking this attack on their living standards lying down. Everywhere they are fighting back determinedly with massive militant actions directing their Indignation against corporate greed and its quest for maximizing profits at the expense of the common people. It took the form mass upsurge in many capitalist countries with people voicing their demand for an alternative to capitalism.
4.10 In the US and UK, the very citadels of capitalism, people in their thousands have come out on the streets against unemployment and economic inequality. The so-called London riots which took place not only in London but also in several other cities, and the "Occupy Wall Street" call which saw huge turn-outs in all cities of America for several weeks flaunting placards, and slogans against capitalism showed that mass indignation against capitalism was no longer confined to the peripheries of the capitalist world. The Metropolis too is now under attack!
Capitalism has long passed its peak and is now on the decline. No longer have we heard the triumphalistic cry that there is no alternative to capitalism.
The era of capitalist domination all over the world first ended after the October Socialist Revolution in Russia in 1917. World War-II saw the rout of fascism, the most reactionary and most imperialist element of finance capital. Hundreds of countries broke their chains of colonial slavery and achieved their National Independence. Some countries in Europe and Asia broke away from capitalism and took the path of socialism.
4.11 However the Soviet Union and some East European socialist countries collapsed towards the end of the 20th century. They are now engaged in restoring capitalism in their countries. This has given a new breath to capitalism, whose propagandists even gloated about the 'end of history'. But this is now proving short-lived. China, Vietnam, Cuba have been building socialism according to their specific conditions and characteristics. China and Vietnam have adopted the course towards "Socialism through a market economy". This is an original way to build a dynamic economy as a first step in their path to socialism. It remains to be seen what are the immediate consequences, but note must be taken that their sight is firmly focused on the goal of socialism.
China today has become the second largest economy after the USA. There is speculation about its economy overcoming the USA in the not so distant future.
4.12 A wind of change has swept across the Latin American continent. The Cuban Revolution in 1959 has withstood like a rock all the attempts of the US to suppress it and is marching ahead towards the socialist goal. Venezuela, Equador, Brazil, Argentine, Uruguay, Bolivia, Peru, have all broken away from US domination and emerged from what was earlier known as the "U.S Backyard". After pursuing armed guerilla struggle for many years they have changed tactics and won a majority in their parliaments and in presidential elections.
For more than a century most of these countries were under the iron heels of brutal dictatorships propped up by the US. Some had come to be called 'Banana Republics' serving the interests of American Transnational Corporations. Now profound political changes are taking place in each of them towards democratization. Economic changes for radically improving the conditions of life of the poor and indigenous people have been carried out. The countries of Latin America have also initiated several regional agreements for joint development including a bank of their own. US over lordship in the Organisation of Latin American States is no longer there.
The Latin American developments undoubtedly exercise tremendous impact on the world situation. They have made a difference in the balance of forces. So have certain developments in the African continent. They require critical study. Appropriate lessons have to be drawn.
4.13 Unprecedented massive and militant mass uprisings have rocked the northern states of the African continent. Millions of people occupied the main squares and streets of the capital and all major cities for several weeks at a stretch demanding the ouster of autocratic dictators and hereditary rulers in Egypt, Tunisia, Libya, Bahrain and several countries of the Arab world. For several decades these rulers were acting as reliable allies of America, and supporting Israel against the Palestinian people's struggle for statehood. At the same time they subjected the people to harsh repression. The people displayed exemplary courage in facing severe repression and fought back with fierce determination. Their demand was for an end to autocracy, for democratization and for a better equitable economic order. They succeeded in driving out the dictatorship in Egypt and Tunisia, though the final battle has not yet been won, mainly due to the motley combination of forces leading the movement, and the intervention of the military and imperialism from behind the scene. The most reactionary and autocratic country in the Arab World, Saudi Arabia, the reliable bastion of America sent its army to neighbouring Bahrain to crush the people's uprising and prevent the contagion of revolt from spreading. However, success cannot be measured only by the immediate gains, but by the people's mass awakening, which once roused cannot be thwarted or held back for long.
In Libya, the imperialist powers acting through the NATO have militarily intervened so as to thwart the people's movement, install a toady regime and grab the rich resources of Libyan oil. The same forces are trying to take over Syria by instigating and extending military aid to counter-revolutionary armed elements.
Africa, - the Arab World in particular, is in turmoil. The move is unmistakably for democratization, and against autocracy having links with imperialism. But in the absence of strong and powerful democratic and progressive parties leading the revolts in these Arab countries, the relatively strong Muslim Brotherhood patronized by Imperialism and the Saudi ruling circles are taking over. It emphasizes the importance of who leads the people's revolt and with what aim.
4.14 In working out and evolving the national strategy for social transformation, it has become increasingly necessary to take into account the global context and the global solidarity for achieving success.
4.15 The world today is divided into several groups of countries. Developments that are taking place in these countries illustrate the diverse possibilities and ways of building a new society in each of them in the course of advancing towards the common goal of socio-economic transformations. There may be many ups and downs, many twists and turns, and even temporary or long setbacks, but the inevitable course of historical developments is towards overcoming imperialism and capitalism and advancing towards social progress and change. This is a historical truth which has to be taken into account in carrying on revolutionary activities today.
4.16 Even though capitalism is on the decline and is facing serious problems this does not mean that it will come to an end on its own before long. World capitalism has tremendous reserves. It has unbounded capacity to use the Scientific and Technological Revolution and the Revolution in IT and Communication as well as its hold over the corporate media to prolong its life. It can only be overthrown by a combination of revolutionary classes and forces and led by a revolutionary party when the political situation matures in each country.
4.17 Though imperialism, and in particular US imperialism is in the midst of a serious crisis and is finding it difficult to emerge from it, this cannot be construed to mean that the danger and offensive of imperialism has diminished. Indeed US imperialism is taking recourse to more and more militarism and unilateralism in its relation with other countries. Its military expenditure is more than the combined defence expenditures of the rest of the world, and its strategic moves. are for 'regime changes', sanctions and military interventions against countries that dare to stand up to it, and assert their determination to decide their own destiny.
U.S imperialism puts its national interests above the interests of World Peace and orderly international relations. It pursues a strategy of preemptive attack against other countries in disregard of the United Nations. It is today the greatest threat to World Peace and Security, and to the sovereign rights of nations. The struggle for peace and opposition to imperialism is therefore a priority task on the agenda of all those who are fighting for democracy, progress and socialism.
4.1 The latest deep and continuing crisis originated with the financial crisis in the USA, the Eldorado of capitalism, leading to the collapse of more than a hundred banks and financial institutions, which by their very gigantic size and scale of operations were supposed to be incapable of collapsing. This was soon followed by an economic meltdown that spread to all countries of the capitalist world.
4.2 As is usual with capitalism, the entire burden of the crisis was shoved on to the shoulders of the working class and the common people, who were faced with closures, retrenchments, loss of jobs, cut in wages, pensions and other benefits earned through tremendous struggles and sacrifices, in every country.
4.3 The shockwave of the crisis could not but affect many other countries, which had only five or six decades back broken out of their colonial chains, but had adopted the capitalist path of building their economy and were in many respects bound to the economy of their old masters.
4.4 Countries which had moved away from capitalism and were engaged in building economy according to their own conditions, such as China had managed to avoid this crisis. But they" could not altogether escape the effect of the international links of trade and finance, which they had with the capitalist world.
4.5 India, a developing country following the capitalist path of development, and even adopting the neo-liberal prescriptions dictated by the IMF, World Bank and the Transnational Corporations, inevitably suffered from this crisis of world capitalism. But it was saved from its rigors and intensity due to the fact that its financial sector till then mostly in the public sector, and so were many of its strategic industrial and commercial undertakings. They could not indulge in the speculative financial maneuverings and skullduggery which the private players in the Developed West had been indulging in.
Neo-liberalism did contribute to a fast economic growth in India for some period measured in terms of GDP, but it led to tremendous economic disparities with dizzy heights of affluence at one end and depth of poverty at the other, together with disastrous consequences for the environment.
A section of middle class and intelligentsia, which has benefited from the economic growth and is dazzled by 'Shining India', is also influenced by such talk of 'Reform', ignoring the actual consequences. Actually this serves to camouflage the ideological, political and economic designs of American imperialism and International Finance Capital.
4.6 In the name of combating the economic crisis bourgeois governments in most countries doled out huge funds to the corporate firms. The bailout packages ran into billions and even to trillions of dollars in the US, U.K, France, Germany and Japan etc., in the name of stimulating the economy and reviving it. Corresponding deep cuts were made in the funds meant for the common people.
4.7 India too followed suit by doling out huge packages to the crisis hit corporate entities. That could not mitigate the widespread closures and the resultant unemployment in a number of industries in the country.
4.8 Even after the passage of few years the US economy- the largest in the world, is still not in the way of recovering from the depression. So also several countries of the developed West, the European Union in particular. The crisis has lengthened into a more or less permanent one. There is the Sovereign Debt Crisis. The US which is the most indebted country of the world, living like a parasite at the cost of others, finds it difficult to repay its loans. The dollar has lost some of its sheen. Though there have been talks of finding an alternative international currency, the very weight of its prestige and acceptability backed by US economic and military might has prevented any such cataclysmic move so far. It continues in its position by default.
4.9 National currencies, including the Indian Rupee are under tremendous pressure, and there is financial instability all round. Situation in the Eurozone is very serious. Greece, Portugal, Spain, Italy have to face the ignominy of inability to repay their loan commitments. Led by Germany and France the European Union imposed harsh austerity measurers on Greece to bail it out of its predicament. This is meeting with the stiffest resistance ever, bringing Greece to the brink of a revolutionary outburst. Other countries cut their welfare budgets meant for the working people.
The working class and also many sections of the middle class are not taking this attack on their living standards lying down. Everywhere they are fighting back determinedly with massive militant actions directing their Indignation against corporate greed and its quest for maximizing profits at the expense of the common people. It took the form mass upsurge in many capitalist countries with people voicing their demand for an alternative to capitalism.
4.10 In the US and UK, the very citadels of capitalism, people in their thousands have come out on the streets against unemployment and economic inequality. The so-called London riots which took place not only in London but also in several other cities, and the "Occupy Wall Street" call which saw huge turn-outs in all cities of America for several weeks flaunting placards, and slogans against capitalism showed that mass indignation against capitalism was no longer confined to the peripheries of the capitalist world. The Metropolis too is now under attack!
Capitalism has long passed its peak and is now on the decline. No longer have we heard the triumphalistic cry that there is no alternative to capitalism.
The era of capitalist domination all over the world first ended after the October Socialist Revolution in Russia in 1917. World War-II saw the rout of fascism, the most reactionary and most imperialist element of finance capital. Hundreds of countries broke their chains of colonial slavery and achieved their National Independence. Some countries in Europe and Asia broke away from capitalism and took the path of socialism.
4.11 However the Soviet Union and some East European socialist countries collapsed towards the end of the 20th century. They are now engaged in restoring capitalism in their countries. This has given a new breath to capitalism, whose propagandists even gloated about the 'end of history'. But this is now proving short-lived. China, Vietnam, Cuba have been building socialism according to their specific conditions and characteristics. China and Vietnam have adopted the course towards "Socialism through a market economy". This is an original way to build a dynamic economy as a first step in their path to socialism. It remains to be seen what are the immediate consequences, but note must be taken that their sight is firmly focused on the goal of socialism.
China today has become the second largest economy after the USA. There is speculation about its economy overcoming the USA in the not so distant future.
4.12 A wind of change has swept across the Latin American continent. The Cuban Revolution in 1959 has withstood like a rock all the attempts of the US to suppress it and is marching ahead towards the socialist goal. Venezuela, Equador, Brazil, Argentine, Uruguay, Bolivia, Peru, have all broken away from US domination and emerged from what was earlier known as the "U.S Backyard". After pursuing armed guerilla struggle for many years they have changed tactics and won a majority in their parliaments and in presidential elections.
For more than a century most of these countries were under the iron heels of brutal dictatorships propped up by the US. Some had come to be called 'Banana Republics' serving the interests of American Transnational Corporations. Now profound political changes are taking place in each of them towards democratization. Economic changes for radically improving the conditions of life of the poor and indigenous people have been carried out. The countries of Latin America have also initiated several regional agreements for joint development including a bank of their own. US over lordship in the Organisation of Latin American States is no longer there.
The Latin American developments undoubtedly exercise tremendous impact on the world situation. They have made a difference in the balance of forces. So have certain developments in the African continent. They require critical study. Appropriate lessons have to be drawn.
4.13 Unprecedented massive and militant mass uprisings have rocked the northern states of the African continent. Millions of people occupied the main squares and streets of the capital and all major cities for several weeks at a stretch demanding the ouster of autocratic dictators and hereditary rulers in Egypt, Tunisia, Libya, Bahrain and several countries of the Arab world. For several decades these rulers were acting as reliable allies of America, and supporting Israel against the Palestinian people's struggle for statehood. At the same time they subjected the people to harsh repression. The people displayed exemplary courage in facing severe repression and fought back with fierce determination. Their demand was for an end to autocracy, for democratization and for a better equitable economic order. They succeeded in driving out the dictatorship in Egypt and Tunisia, though the final battle has not yet been won, mainly due to the motley combination of forces leading the movement, and the intervention of the military and imperialism from behind the scene. The most reactionary and autocratic country in the Arab World, Saudi Arabia, the reliable bastion of America sent its army to neighbouring Bahrain to crush the people's uprising and prevent the contagion of revolt from spreading. However, success cannot be measured only by the immediate gains, but by the people's mass awakening, which once roused cannot be thwarted or held back for long.
In Libya, the imperialist powers acting through the NATO have militarily intervened so as to thwart the people's movement, install a toady regime and grab the rich resources of Libyan oil. The same forces are trying to take over Syria by instigating and extending military aid to counter-revolutionary armed elements.
Africa, - the Arab World in particular, is in turmoil. The move is unmistakably for democratization, and against autocracy having links with imperialism. But in the absence of strong and powerful democratic and progressive parties leading the revolts in these Arab countries, the relatively strong Muslim Brotherhood patronized by Imperialism and the Saudi ruling circles are taking over. It emphasizes the importance of who leads the people's revolt and with what aim.
4.14 In working out and evolving the national strategy for social transformation, it has become increasingly necessary to take into account the global context and the global solidarity for achieving success.
4.15 The world today is divided into several groups of countries. Developments that are taking place in these countries illustrate the diverse possibilities and ways of building a new society in each of them in the course of advancing towards the common goal of socio-economic transformations. There may be many ups and downs, many twists and turns, and even temporary or long setbacks, but the inevitable course of historical developments is towards overcoming imperialism and capitalism and advancing towards social progress and change. This is a historical truth which has to be taken into account in carrying on revolutionary activities today.
4.16 Even though capitalism is on the decline and is facing serious problems this does not mean that it will come to an end on its own before long. World capitalism has tremendous reserves. It has unbounded capacity to use the Scientific and Technological Revolution and the Revolution in IT and Communication as well as its hold over the corporate media to prolong its life. It can only be overthrown by a combination of revolutionary classes and forces and led by a revolutionary party when the political situation matures in each country.
4.17 Though imperialism, and in particular US imperialism is in the midst of a serious crisis and is finding it difficult to emerge from it, this cannot be construed to mean that the danger and offensive of imperialism has diminished. Indeed US imperialism is taking recourse to more and more militarism and unilateralism in its relation with other countries. Its military expenditure is more than the combined defence expenditures of the rest of the world, and its strategic moves. are for 'regime changes', sanctions and military interventions against countries that dare to stand up to it, and assert their determination to decide their own destiny.
U.S imperialism puts its national interests above the interests of World Peace and orderly international relations. It pursues a strategy of preemptive attack against other countries in disregard of the United Nations. It is today the greatest threat to World Peace and Security, and to the sovereign rights of nations. The struggle for peace and opposition to imperialism is therefore a priority task on the agenda of all those who are fighting for democracy, progress and socialism.
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