21

p Dear Comrades,

p At the outset, on behalf of the CPI(M), I express my gratitude for jjpur acceptance of our invitation and participation in this seminar.

p The need to address ourselves to this issue arises not only because of the renewed offensive, both ideological and political, by the enemies of human liberation - imperialism and its agents. The need arises more out of the necessity to reassert the invincible validity of this creative science, rectifying the mistakes of the past, reassessing the estimations of the correlation of class forces made at various points of time, in order to overcome the weaknesses and lags in understanding, precisely to strengthen and carry forward the struggle for human emancipation.

p Of the vast complexity of processes that define the contemporary world situation, two aspects continue to be utilised to mount this renewed offensive which seeks to disintegrate the ranks of communists. First, the dismantling of socialism in the USSR and East European countries. Secondly, the so-called ‘invincibility’ of capitalism as a system signifying the end of the human social evolution.

p On both these counts, as on all others, the creative science of Marxism, far from being repudiated emerges as the only basis to properly understand and evaluate these developments.

p Before proceeding to substantiate this assertion, it would be necessary to briefly recapitulate the essential qualities of Marxism. We can do no better than to quote Lenin. The history of 22 philosophy and the history of social science show with perfect clarity that there is nothing resembling "sectarianism” in Marxism, in the sense of its being a hidebound, petrified doctrine, a doctrine which arose away from the high road of the development of world civilisation. On the contrary, the genius of Marx consists precisely in his having furnished answers to questions already raised by the foremost minds of mankind. His doctrine emerged as the direct and immediate continuation of the teachings of the greatest representatives of philosophy; political economy and socialism.” (On the three sources and components of Marxism)

p Further he said, "the genius of Marx lies in his having been the first to deduce™, the lesson world history teaches and to apply that lesson consistently. The deduction he made is the doctrine of class struggle."

p The CPI(M)’s 14th Congress Resolution On Certain Ideological Issues had noted: "Marxism-Leninism is inherently materialistic, creative and intrinsically dialectical. It is hence supremely antidogmatic. It is a world-view that embraces the vision of liberation and expresses emancipatory ideals. It is a tool for understanding and analysing the multitude of phenomena mat constitute changing historical situations. It is a guide to action that defines programmatic objectives for {he people’s struggle for liberation, subject to the necessary adaptations as required by changing historical situations."

p "As a creative science, Marxism-Leninism identifies the tendencies and directions of development In doing so it provides the possibilities for popular mass intervention in these developments in the pursuit of establishing an exploitation-free society. For instance, the historical inevitability of the replacement of the exploitation-based capitalism by socialism is not automatic The key factor mat can effect such a social transformation is the correct ideological, political and organisational leadership of the growing struggles of the working class, the peasantry and all working people. When this class consciousness is defused or blunted, the forces of counter-revolution exploit the situation to perpetuate their class rule".

p Subsequent world developments and the present situation vindicate the fundamental Marxist world view; its scientific method and its fundamental conclusion that class struggle is the motive 23 force of history.

p Firmly convinced of the fundamental basis of the Marxist understanding, the CPI(M), while probing the factors leading to the dismantling of socialism in the USSR and East European countries basically identified three main areas where certain incorrect assessments led to incorrect political and tactical lines which instead of strengthening the international communist movement only eroded its strongest bastions.

p These relate to an understanding of the transition period from capitalism to socialism; a correct estimation of capitalism and its potential; and deviations from the revolutionary content of Marxism-Leninism.

p The period of transition from capitalism to socialism was often simplistically and mechanically construed as a straightforward path without any zigzags and more importantly, as irreversible. Socialism, in fact, represents the transition of humanity from capitalism, the highest form of class society, to Communism, a classless society. Integral, therefore, to this stage is not merely the coexistence but the constant and growing struggle between counterrevolutionary forces who wish to preserve the exploitative capitalist order and the revolutionary forces that seek to liberate humanity.

p The success or failure in this struggle, at any point of time, is determined both by the successes achieved in socialist construction in the socialist countries and the international and internal correlation of class forces and its correct estimation. The correct estimation assumes importance since from this follows a corresponding poli tical, tactical line which either advances or retards the progress towards liberation. Incorrect assessment and estimation based on ideological deviations, as the history of the international communist movement is witness, lead to distortions. These were exploited by the counter-revolutionary forces time and again to derail the international communist movement from its class moorings.

p One such instance, a major one, was the estimation regarding the strength and potential of capitalism made by the international conferences in 1957 and 1960. The document of the 1960 conference, while endorsing the shift in the world balance of forces in favour of socialism, went far beyond to deny capitalism any future and to describe socialism as the decisive factor in shaping world 24 developments. Such a conclusion, apart from re-enforcing the simplistic understanding regarding the irreversible nature of the transition period,grossly underestimated the potential of world capitalism, both of its capacity to further develop productive forces as well as its capacity to adapt to changed circumstances.

p This of course, does not mean that capitalism has or can ever have the strength to overcome its inherent crisis that Marx had analysed bare in his work. But crisis by themselves cannot and do not cause the collapse of capitalism automatically. A conclusion of seminal importance drawn by Marx was that capitalism has to be overthrown. It does not automatically collapse.

p This underestimation of capitalism was accompanied by an incorrect estimation of the correlation of class forces under changed circumstances by the 20th Congress of the CPSU. The gross distortion of the Leninist concept of peaceful coexistence and the advocacy of peaceful competition and peaceful transition by the CPSU leadership under Khrushchev threw the door open for revisionism and class collaboration of the worst kind. As a consequence, many a communist party was decimated leaving the international communist movement much emasculated.

p While capitalism was adapting to changing realities, finding newer formsof exploitation and intensifying the ideological struggle against socialism, the underestimation of capitalism and deviations, both dogmatic and revisionist, combined to dilute the socialist ideological counter offensive and the struggle against capitalism. Instead of correcting the deviations and distortions that crept in, mistakes continued to accumulate in the subsequent decades of socialist construction in 70s and 80s. This permitted imperialism and capitalism to gain for the political advantage.

p The task of overthrowing capitalism needs the constant sharpening and strengthening of the revolutionary ideological struggle of the working class and its decisive intervention under the leadership of a party wedded to Marxism-Leninism - a subjective factor without which no revolutionary transformation is possible. This subjective factor was, as we noted, further weakened due to the revisionist deviations.

p Such errors, it must be accepted in the spirit of truthful selfcri ticism, were also accompanied by a o verestimation of the strength of socialism. While socialism, being a superior system made 25 gigantic strides in the initial years, capable of facing the severest of onslaughts and rebuff them, was beset with certain limitations. First, the fact that socialist revolutions triumphed not in the advanced but relatively backward capitalistically developed countries. This meant that though the physical size of the Imperialist market reduced, the level of productive forces already achieved by Capitalism and its capacity to develop it further remained. This in itself imposed severe limitations in terms of carrying forward the process of social change from immense relative backwardness to a stage higher than that of capitalism. Lenin was ever conscious of these problems. While emphasising the prolonged and complex character of the transition period, Lenin in his life time, advanced and implemented many initiatives like the NEP keeping in mind the backwardness and concrete conditions of Russia. That the process of socialist construction is both prolonged and complex need to be underlined.

p However, it will be wrong to conclude that the socialist revolutions in these countries were premature. The sharpening of the world wide contradictions permitted the rupture of the imperialist chain at its weakest link. Seizing this initiative the socialist revolution triumphed, ushering in a new era in human civilization. The Great October Socialist Revolution radically altered the world situation galvanising both the international working class movement and the struggles in the colonial world. The gigantic economic strides that it made within a short period of time, vindicating the superiority of the socialist system, inspired many a revolutionary movement across the globe.

p Apart from such incorrect estimations and deviations, there were specific mistakes and shortcomings in four broad areas in the process of socialist construction. These relate to: form of state under socialism-dictatorship of the proletariat; socialist democracy in practice; socialist economic construction; and ideological consciousness of the Party and people in the socialist countries. The CPI(M) 14th Party Congress resolution has examined these aspects in some detail.

p However, instead of correcting the mistakes of the past and overcoming the distortions within the framework of Socialism and Marxism-Leninism, the CPSU under Gorbachev’s leadership pursued a liquidationist course that ultimately led to the dismantling 26 of Socialism.

p Though a lot more study has to be undertaken into the specifics of these experiences, the CPI(M) is of the firm opinion that the dismantling of socialism in these countries was due to these deviations, mistakes and distortions that have occured during the process of socialist construction.

p These developments hence do not and cannot constitute a repudiation of socialism or Marxism-Leninism.

p Notwithstanding these incorrect estimations and present-day reverses, the 20th century, particularly the epoch beginning with the October Revolution, was marked by the victories of the working class, the peasantry and people in every continent of the world, in varying degree.

p During this century, capitalism plunged humanity into two barbaric world wars claiming millions of lives. It produced and used nuclear weapons to demonstrate its inhuman superiority and plunged the world into a nuclear race with devastating consequences. It launched numerous wars to contain humanity’s advance to socialism, intervened in the internal affairs of independent countries, organised coups, foisted reactionary and dictatorial regimes to suit its interests. Its most barbaric form was exposed in the fascist dictatorships.

p On the other hand,the socialist revolutions and national liberation struggles imparted a richer content to human civilisation, by making it possible for the majority of the working people in many countries to lead their lives without national oppression and free from exploitation. This impact continues to chart the future course of human development towards national and social liberation. This process, however, will be long, complex and full of twists and turns. But the fundamental direction of the epoch continues to be that of a transition from capitalism to socialism.

p The validity of Marxism as a science, a method, a guide to action and its abiding relevance is justified by the nature of the present world developments. It would be unnecessary, in our opinion, to burden this august gathering of revolutionaries with statistical data that is familiar. It, however, needs emphasis that the contemporary world situation continues to be characterised by the four fundamental contradictions. The continuing recessionary 27 spell in the capitalist economy is accentuating the contradictions between Labour and Capital. The effort to shift the burden of this crisis by imperialism on to the third world countries is bound to intensify the contradiction between imperialism and the peoples of the third world countries. Accompanied by the political offensive of USA to establish its "New World Order”, this portends further sharpening of this contradiction. Inter-imperialist contradictions continue to grow and express themselves in various forms, particularly in the economic sphere.The US-led economic blockade against Cuba, the new offensive on the issue of nuclear inspection of North Korea and the continued embargo against Vietnam signify Imperialism’s continued offensive against Socialism.

p While these contradictions continue to influence world developments, the forms of resolving these would vary according to the concrete situations. For instance, the rnter-imperialist rivalries ending up in an imperialist war like the First and Second World Wars today remains a very remote possibility for a variety of reasons.

p Though these developments vindicate the fundamental basis of the Marxist analysis and understanding, a point that we noted earlier needs underlining. The subjective factor - and its weakness today - permits capitalism to create enough space for its manoeuvres to survive out of its inherent contradictions.

p However, it is necessary to identify the concrete specificities that permit the continued capitalist advance despite its basic contradictions. The living essence of Marxism as Lenin had said, is the "concrete analysis of concrete conditions”. We venture to pose a few issues that in our opinion distinguish the post-Second World War capitalist economy, particularly since the 70s. We are fully conscious of the limitations of our capacity to undertake a profound analysis. This is a task that is necessary, however.

p The two decades until 1973 witnessed rates of growth of output in the imperialist world that were unprecedented in the entire history of capitalism. This was achieved under the new post war political and economic leadership of the USA. The reconstruction boom after the devastation of the second world war, the spread Of automobiles, ihe Keynesian demand management policies p^ rsued in individual capitalist countries, and above all huge Stale |* penditures, especially on armaments in the leading country, the US 28 all contributed to the maintenance of high demand in the imperialist world, which, under the new Bretton Woods financial arrangement facilitating global trade and financial flows, ushered in high growth rates in virtually all of them. To be sure, there was uneven development among them, with Japan being by far the fastest grower among them all, but this was uneven development in the context of a general boom. In these boom conditions, technological innovations were rapidly adopted, bringing about significant growth rates in labour productivity, which, despite rising rates of surplus value, raised the living standards of large segments of the working class in the imperialist countries.

p All this is well-known. What is particularly intriguing however is the development after 1973. With high rates of inflation in the mid-70s, with a recession in 1974-75 which was by far the worst since the Great Depression of the 30s, and with the Bretton Woods system having collapsed, world capitalism appeared to be heading for another period of severe crisis in conformity with traditional Marxist understanding. This however did not come about the way it was anticipated, and nothing underscores more clearly the resilience of imperialism and our underestimation of its potential strength than its subsequent performance. No doubt, the growth rates in the advanced capitalist world have come down sharply from their post-war levels; no doubt the growth of world trade has shrunk rapidly; no doubt, at the very present moment the entire imperialist world is experiencing a recession; and no doubt the unemployment rates in all of them have been higher in a secular sense in the 80s and the 90s than during the long boom of the 50s and the 60s. Nevertheless, none of these adds up to portend a repetition of a 1930s-type crisis, at least not as yet. The question is why?

p The inflationary upsurge of the late 70s and the early 80s in the imperialist countries was checked in two ways: by enlarging the domestic reserve army of labour (which explains the high unemployment rates), which weakened the trade unions and prevented real wage claims from rising in tandem with productivity increases, and, even more important, by turning the terms of trade against the primary commodity producers of the third world. The collapse of primary commodity prices relative to manufactures, which has brought indebtedness, loss of economic sovereignty to the IMF, decline in per capita incomes, and starvation and famines, to vast stretches of the third world, notably Africa and Latin 29 America, is the direct outcome of the “success” of inflation-control in the imperialist countries.

p But with declining incomes in the third world, and lower wageshares in the imperialist countries themselves, metropolitan capitalism would have been expected to have moved into a serious slump. How was this avoided? Apart from the scientific and technological advances, we come to the significance of the centralisation of international finance that has taken place. The basic support for the level of economic activity in the metropolitan countries was provided by the huge expansion in the U.S. fiscal deficit which occurred with Reagan. And this deficit, which gave rise to a large current account deficit in the U.S. balance of payments, was financed through incurring an enormous external debt, which was facilitated by the centralisation of international finance.

p The hallmark of the current centralisation of international finance, or globalisation as some have called it, lies in the fact that capital is sucked out from all comers of the globe to be invested in a few selected areas deemed fit, or creditworthy, by a handful of multinational banks. It is not that the multinational banks themselves exclusively control the financial flows; but the lead given by them is followed by myriads of individual rentiers, so that without there being any “conspiracy” about it the whole world’s finances, as it were, are subjected to one centralised controlling authority with regard to their deployment, the authority consisting of a handful of multinational banks. However, the competition between multinational corporations and banks, often leading to conflicts, may well upset the present arrangement.

p The recurring U.S. fiscal deficit gives centralised international finance capital an avenue of investment, it thus accentuates third world recession; by sucking in finance from elsewhere it imposes a financial crunch on the third world which forces the latter to surrender its economic sovereignty to imperialist agencies like the IMF and the World Bank; and it also makes the third world hand over control over its assets and resources "for a song" to international creditors for servicing past debt; besides it sustains the level of activity in the imperialist world and prevents the onset of any sharp slump.

p All this, namely the ability to stabilise their own economies at the expense of the third world, would not have been possible if, 30 despite their undoubted contradictions, the imperialist economies had not displayed a measure of agreement amongst themselves. Periods of imperialist disunity are periods which are not only characterised by crisis at the core, but which also provide “space” to the third world, as well as the socialist countries to assert themselves. On the other hand as long as the imperialist countries act with a degree of common purpose, they can deny this space and more effectively pass on the burdens of their crisis on to the shoulders of the third world, thus stabilising themselves at the tetter’s expense. Apart from the objective basis of inter penetration of capital leading to a degree of coherence, the compelling political reason for this was the existance a powerful socialist power that could check imperialist attempts to impose global hegemony. With its absence today, the shifting of the burdens on to the third world is bound to intensiy. Ironically, these periods are marked by disunity within the third world, not only within countries, but even inside countries where secessionist and other fissiparous tendencies raise their heads as the dream of "national reconstruction" gets snuffed out.

p To say this is not to retreat to the Kautskyite position of “ ultraimperialism” from Lenin’s emphasis on inter-imperialist rivalry. The point is not to absolutise the degree of coherence that the imperialist powers have displayed hitherto. Severe inter-imperialist contradictions exist and intensify with the U.S. progressively losing its pre-eminent position, her markets progressively being taken over by Japanese capital, her debtor status getting progressively accentuated, and her government under increasing pressure to go protectionist. The “stability” that has hitherto characterised the capitalist world despite all its vicissitudes, is bound to disappear with the intensification of inter-imperialist contradictions. The point is to underline the complexity characterising capitalist development in particular conjunctures which can not be reduced to simple formulae.

p Imperialism thus, has shown far greater reserves of strength and far greater resilience than had been earlier imagined. To underestimate this strength, its manoeuvres to recover from defeats is not only suicidal from a strategic point of view, but what is more it creates false hopes among the revolutionary ranks and quickly leads to ideological disillusionment. This does not and cannot mean that capitalism and imperialism is invincible. We live in 31 a present situation, when favourable conjunctures for imperialism are bound to be followed by periods when it is driven with incoherence, antagonisms, rivalries and crises. And in this sense there can be no going back upon the Leninist vision. But the transition from capitalism to socialism is likely to be a far more protracted process with setbacks upon the way, with imperialism regrouping its strength with reversals even in countries that had once witnessed socialist revolutions and appeared firmly set on the path of socialism and so on. The point is to change the world by looking unflinchingly at the objective reality, falling prey neither to false euphoria nor to pettybourgeois despair.

p The task of enriching Marxism and carrying forward the revolutionary struggle in the present circumstances requires a deeper theoretical study of the contemporary processes that are taking place. In fact, the stupendous task which was undertaken by Lenin in his time needs to be carried forward. The Marxist scientific methodology continues to remain the richest source of tools capable to undertake this task. A lot of work needs to be done not only regarding contemporary capitalism and imperialism but also in the field of political economy of socialism.

p The CPKM) had, in its XIV Congress stated: The short comings and failures in the process of enriching this creative science in accordance with the unfolding historical developments, is not due to its inadequacies or lack of scientific method of its content It is due to the inadequacies and lack of scientific rigour on the part of those who have embraced this philosophy".

p The overriding validity and the abiding relevance of Marxism lies in its liberating vision and emancipatory goals. It remains today the highest form of philosophy that expresses al 1 that humanism constitutes and ought to constitute.

p The entire quest of Marx during his life time and that of all subsequent Marxists, was to establish the basic factors necessary for complete human liberation. Capitalism as Marx had shown and subsequent developments justify, is a system based on human exploitation. As long as exploitation of man by man and nation by nation continues to be the basis of the capitalist system the yearning for human liberation can never be snuffed out. The world that we know today, the rights that humanity has come to accept asa matter of course, had all been contributions of people’s struggles. It is this class struggle that continues to shape the present day 32 developments and its associated human consciousness. The imprint of Marxism on contemporary society and the intellectual development of humanity is inerasable.

p The contemporary world situation tellingly demonstrate the unjust and inhuman nature of capitalism. It is its rapacious plunder that is responsible for the terrible situation of hunger, misery, sickness, illiteracy that stalk the millions in the developing world. It is directly responsible for the dangers of nuclear holocaust and worsening major ecological imbalances. The increasing moral and ethical degeneration of capitalist societies, drug abuse, violence, gender and racial discrimination are continuously debasing the finer qualities of human beings. Despite the perennial propaganda, intensified following these reverses to socialism, that ’capitalism is eternal’, it today, as in the past, proves itself as a system incapable of solving the major problems confronting humanity.

p This is all the more evident from the experience of the former socialist countries. Millions are today deprived of the means of daily existence, unknown to generations under the socialist system. The process of restoring capitalism in these countries, is accompanied by its natural consequences of growing unemploy ment, insecurity, hunger and the merciless tearing asunder of the social and moral fabric.In the name of ‘Democracy’, the dismantling of Socialism took place. Today democracy has been rendered meaningless for the people. The recent attack on May day demonstrators at Red Square has shown the face of this ‘democracy’. Imperialism’s open support to Yeltsin exposes the real class nature of the new order in these countries. Capitalism has thus proven to be incapable of solving the problems of these countries.

p The tasks facing communists are indeed immense. The accentuation of the fundamental contradictions of our epoch, the new insidious and vicious process of economic ‘re-colonisation’ of the third world, and the imperialist attempts to impose its New World Order, call for a greater dosing of ranks amongst Communists and anti-imperialist contingents. The unity of all communists, progressive and anti-imperialist forces is the basis for strengthening internationalism in the present situation. It is only on the basis of this that the imperialist offensive can be rebuffed.

p Long live Marxism-Leninism!

Long live Proletarian Internationalism!