Globalized Capitalism is War

Capitalism is in crisis, and that is not an analysis we hold alone. The CEOs of Goldman Sachs and JPMorgan Chase and the two wealthiest people in the world Bezos and Musk all agree that the global economic contractions will continue. According to the IMF, the baseline forecast is for growth to fall from 3.4 percent in 2022 to 2.8 percent in 2023, before settling at 3.0 percent in 2024. Advanced economies are expected to see an especially pronounced growth slowdown, from 2.7 percent in 2022 to 1.3 percent in 2023. In a plausible alternative scenario with further financial sector stress, global growth declines to about 2.5 percent in 2023 with advanced economy growth falling below 1 percent. Global headline inflation in the baseline is set to fall from 8.7 percent in 2022 to 7.0 percent in 2023 on the back of lower commodity prices but underlying (core) inflation is likely to decline more slowly. Inflation’s return to target is unlikely before 2025 in most cases. A chilling report from economists at the World Economic Forum last year said “We are in uncharted waters in the months ahead… This will test the resilience of economies and societies and exact a punishing human toll”. And we know where the ‘punishing human toll’ will come from, not from the blood, sweat and tears of the bourgeoisie but from the workers they exploit. 

It is true that capitalists do not deny the economic difficulties. But they diminish its scope: the possibility of recession, of ‘market volatility’, ‘excess’ of capitalism, ‘greedflation’, crisis of multilateralism or globalization and criticism of ‘neoliberalism’ are terms we are used to.

However, the problem is much deeper: it is the capitalist system that is structurally in crisis. It is confronted with its main contradiction: the increasing social production globally of commodities and the concentration of capital in an increasingly limited number of hands. The race for profits is therefore held back by the contradictions inherent in the system. This is the general downward trend in the rate of profit.

To escape unscathed, the capitalists must make the working class and the popular masses pay for the crisis, using increasingly violent tactics. We see this in the rise of right-wing and far-right populist movements and ideas here and around the world. They must also indulge in an increasingly irrational exploitation of natural resources, inevitably exacerbating the climate catastrophe. Finally, the increasingly concentrated capital is no longer satisfied with the old divisions of the world inherited from the last thirty years and, in search of new markets, access to raw materials and cheap labour, capitalism in its monopoly stage has resorted to the most violent methods to ensure his hegemony against the rival blocs: war.

Since our extraordinary convention in 2020, imperialist war in Europe has broken out with the invasion of Ukraine by the Russian Federation. The heightening of this conflict has devastating effects for working people around the world as the region is a major exporter of essentials like wheat, fertilizer, and natural gas. Canadian firms are also manufacturing armaments and equipment for both the US and Canadian militaries, which are in turn being loaned or sold to Ukrainian military and paramilitary forces. Furthermore, threats of nuclear strikes are a risk to all of humanity.  

The Canadian state has played the role of warmonger, using the conflict in Ukraine as a proxy war against Russia. The federal government has been ratcheting up the military budget for years as part of NATO’s arms race. The Canadian state played a key role in the 2014 coup of the Ukrainian government, and has spent billions arming and training forces since the conflict in Donbass started. The class that the state represents benefits from these policies. Canadian monopolies owned by the bourgeoisie benefit from increased demand for wheat, pork, potash, and natural gas.       

But imperialism is not just an aggressive policy, it is capitalism in its final stage, the monopoly stage. It is based on large stock companies, monopolies, the increase in the importance of the export of capital over the export of commodities, the creation of finance capital as a merging of industrial and bank capital, the division and redivision of markets and territories. 

The seismic changes we are currently witnessing take place in the context of the continuing and accelerating crisis and decay of global capitalism as a whole, a process that has been developing over many decades. 

The defeat and overturning of socialism in the former Soviet Union and in Eastern Europe in the early 1990s shifted the world balance of forces in favour of capitalism, and in particular elevated U.S. imperialism to the status of unrivalled global dominance within the global capitalist order. Nothing stands still however, and the world today looks very different today than three decades ago. 

The relative decline in the power and influence of U.S. imperialism, and that of European and Japanese imperialism as well, has gained pace in recent years, setting off alarm bells in monopoly circles and in the corridors of power of the leading capitalist states. Frantic efforts to stem and reverse this decline – through the use of economic coercion and military aggression – have, at best, only temporarily slowed this process, but have failed to change its trajectory. 

This complex process is reflected in divergent and even contradictory developments. On one hand, the United States (the dominant imperialist power) has used the conflict in Ukraine to consolidate its hegemonic control of NATO and further extend its reach into Africa, Latin America and the Asia-Pacific regions. It has increased the use of unilateral coercive measures against other countries, especially in the Global South. And it has hobbled together a number of other strategic-military alliances (e.g. AUKUS, the Quad), launched a new cold war against China and the Russian Federation, and also targeting other states that it considers as threats to its continued domination. In its desperate efforts to shore up its flagging power, it is even prepared to bring the world to the precipice of nuclear war. 

On the other hand, more and more countries are maneuvering to extricate themselves from the reach of Washington’s control, or at least lessen its influence over their fates. The strategic partnership between China, Russia, and the Central Asian republics; the growing influence of the Shanghai Cooperation Organization (SCO); the resurgence of CERELAC in Latin America, the changing balance of forces in West Asia (“Middle East”), the substantial increase in countries applying to join the BRICS; and moves by a number of states to conduct international trade avoiding the U.S. dollar as a reserve currency: these are just some developments which reflect the weakening of U.S. hegemony. 

The degree to which these latter developments act as a sort of counterweight, “staying the hand” of imperialist aggression and averting new wars, are to be welcomed. We should not be under any illusions however that this is a foregone conclusion. Things could also spiral in a downward, militarist direction as well. This makes the strengthening of the peace movement – both in Canada and internationally – more complicated but also more urgent than ever. 

In some quarters on the ‘left’, these developments (i.e., the emergence of “multipolarity”, “de-dollarization”, etc.) are being uncritically championed as positive. Indeed, the erosion of the U.S. financial monopoly, based on the dollar as a world reserve currency, will make economic sanctions imposed by the U.S. and its imperialist allies less effective. But the rise of a “multipolar world” could also have negative consequences as well.   

In any case, we should never lose sight of the fact that, as Communists, we fight for neither a “unipolar” nor “multipolar” world, but rather for a new world based on full equality, sovereignty and independence of all nations and states, on mutual respect, on peace and disarmament, and on cooperative efforts to solve humanity’s most pressing social and environmental problems and challenges. We fight against imperialist aggression, war and plunder wherever it raises its ugly head. We fight for socialism! 

One disturbing trend since our extraordinary convention has been the rise in political violence and anti-communism. Anti-communist attacks have been on the rise notably in India, Swaziland, Ukraine, and Serbia. The rise in anti-communism is linked with the rise of the far right. 

As young communists in Canada, one of our most important contributions to the working class movement has been an anti-imperialist analysis that rejects social chauvinism. We need to continue that work especially now with the danger of war so high. At a central level this means continuing to strengthen our relations with sister communist youth organisations and coordinating our work on WFDY and CNC campaigns, at a club level this means building the peace council movement with the Canadian Peace Congress and Movement Quebecois pour la paix. Coming out of this convention we need to work diligently to relaunch our ‘Canada out of NATO’ campaign. Young people have a vested interest in building the peace movement — we need to take action for peace now, because tomorrow will be too late!

The Political Situation and Fightback in Canada 

Finance Minister Freeland made waves when she told Canadians “I said to my kids lets cut that Disney+ subscription. So, we cut it. It’s only $13.99 a month that we’re saving, but every little bit helps. I believe that I need to take exactly the same approach with the federal government’s finances because that’s the money of Canadians”. At the same time she was telling federal cabinet members, with the exception of the defense ministry, that any new programs in the 2023 budget would have to be funded by cuts. This is a warning about the coming recession and the austerity measures that will follow. 

The majority of provinces have Conservative governments that have been on the offensive slashing social services and attacking workers rights throughout the pandemic. Organised workers movements like the healthcare workers wildcat strike and the unity of the ATA against the new curriculum changes helped drive out Kenney in Alberta, however millionaires Ford and Legault were reelected with majorities, bolstered by the first past the post system. The healthcare privatisation being pushed forward in Ontario is a dangerous model for other provinces. 

Cuts to social services disproportionately impact oppressed segments of the population. In the loss of services provided but also the effect on workers with cuts to wages, working hours, or jobs. As young communists we need to agitate in the mass movements for public monopolies on social services. The market will not provide an expansion of universal quality services. The ruling class wants people paying to skip the line for surgery or taking on massive loans to attend post secondary. We need to make sure that young people know there is an alternative.   

The unity in solidarity with CUPE Ontario seen from the private and public sector union centres in Quebec and english speaking Canada, alongside the militancy and large mobilizations are all together a very positive development. Across the country labour militancy is growing. Young communists that are active in their unions have a role to play in building the action caucus. All comrades that are union members need to take the steps to get involved in their local. 

Privatization of housing has shown itself to be a dreadful failure for working people, the youth in particular. Canada needs is a massive public housing program, rooted in the idea that housing is a human right and should be treated as a public utility. While even the most willing political servants of corporate Canada now admit there is a severe housing crisis, the policy options on the table remain narrow and do not tackle the privatization of housing. Instead, all levels of government they have increased dependency on public-private partnerships, resulting in huge transfers of wealth and housing to the private sector through public funding or through the transfer of public housing stock into private control.

Now international students and other immigrants are being blamed for the housing crisis, recently by Sean Fraser, Canada’s Housing Minister. While it is certainly true that immigration remains one of many factors in increasing the demand for housing, international students and immigrants are far from the root of the problem. International students are also victims and convenient scapegoats for the housing crisis.

We must fight the current reframing of the debate by both the federal Liberal and the provincial Conservative parties that seek to blame immigration, including international students, for the housing crisis. Housing policy remains a class issue – the roots of the crisis are caused by those that profit from it.

There are half a million undocumented workers in Canada, many of them are young people. Because of their lack of status, they are extremely precarious and vulnerable to some of the most exploitative working conditions. In addition to non-status workers, there are 1.2 million workers currently without full permanent resident status, and therefore without full workers’ rights. These residents are on work, study or refugee claimant permits, many of whom also work precarious jobs and who may become undocumented when their current permits expire or their refugee claim is rejected. That’s 1.7 million people residing and working in Canada who do not have full access to the same rights as the rest of Canada’s residents.

From the year 2000 to 2018, the number of foreign temporary workers increased by 550 per cent. It is now the case that the majority of newcomers only have temporary status, many of whom end up losing status and becoming undocumented because of various issues with work and study permits or having their refugee claims denied. The system is set up for maximum exploitation through xenophobic and racist divisions in the labour market where growing numbers of non-status and temporary status workers have no or less rights, which depresses working conditions across the board. Temporary worker programs must be scrapped and replaced by an immigration system which has a clear path to citizenship for all workers. Canada must allow all workers to join unions, be covered by employment standards legislation and have access to healthcare, education and social services. These are fundamental human rights.

Big business wants to maintain temporary immigration statuses in Canada in order to ensure a steady supply of precarious, non-union, low wage workers to tamp down wages and working conditions for all. We stand with the labour movement demands of status for all workers. 

Brecht said “Fascism is not the opposite of democracy, but its evolution in times of crisis”. We have seen the rise of the far right accelerate under the conditions of crisis during the pandemic. This is reflected here with the increased People’s Party vote total and election of leaders such as Danielle Smith and Pierre Polievere. Of course it is our role as young communists to combat the rise of the far right. But not in adventurous street confrontations or debate stages that trivialise the danger of their ideology but rather by participating in and strengthening the mass movements and institutions that can take on this threat; unions and other popular organisations. 

Campuses have fully reopened coast to coast. The closure of campuses not only damaged the work of YCL-LJC clubs but the broader organised student movement as well. Clubs have worked hard to quickly rebuild our presence on campuses including schools where there has not been a YCL-LJC presence in years. Coming out of this convention we will work to organise broader meetings of comrades working in the student movement. 

The reopening of campuses represents an opportunity to breathe new life into the student movement that has been on the retreat well before the pandemic. We have no illusions of the YCL-LJC taking the leadership of the student movement, but we do have a role to play bringing together poles of militancy and action. Our strong positions and policies combined with the current weakness of social democracy and ultra leftism will not only help our movement with recruitment but the broader student movement as well.

 We have seen increased labour militancy by campus workers, including non-academic workers. The student movement’s natural ally is the organised labour movement as they have a shared interest in defence of social services. It is time for the student movement to end the long defence and join organised labour on the offensive.

The minority status of the federal government means mass movements are in a good position to win concessions. Of course Pollievere representing the most dangerous sections of the bourgeoisie symbolises a threat to workers, support the Liberals or else. We need to agitate and propagandise against the dangers of ‘lesser evilism’ and struggle to raise class consciousness. The working class needs strong independent demands from the mass movements, not scraps from the representatives of the ruling class in the Liberals and NDP. 

Building the YCL-LJC and our Press 

At times the league has underestimated the necessity for ideological struggle among young people, we have had some weakness in our independent work and at times wrong approaches to our work in mass movements. 

Our inadequate understanding of trends within the youth movement has at times led us to fear fighting for our positions in the movements. This was coupled with inadequate attention being given to educating our membership on our positions, policies, and style of work. That is why our focus needs to be regular publication of the press both online and in print and consistent and in depth education. 

Of course, we propose to continue the work accomplished in recent years, in particular in the student movement, for peace and international solidarity (in particular through our petition for the exit from NATO) and to better intervene with young workers. We also propose to open other fronts of struggle, especially with high school students, with young women or even on the environmental level. However, we propose to do so not as part of mass campaigns, but rather as part of a vast campaign of agitation and clearly Communist propaganda focused on recruitment.

Vivifying and strengthening the YCL-LJC is first and foremost recruiting. Recruitment has nothing to do with the passive expectation that a few individuals will take an interest in our material on social media and fill out the membership form. Communist recruitment is a militant act which requires sustained and collective work. To recruit is to be active in our places of intervention (campus, workplaces, unions, neighborhoods, cities, social and democratic movements, etc.)

To do this, we must also produce targeted and general agitation and propaganda material upstream. We have already taken the first step with leaflets, posters, leaflets, stickers and others, particularly on the subject of the environment, peace, free education and young workers. We must continue along this path, produce more, even extend the subjects covered (women, racialized people, etc.) but also and above all distribute this material regularly in a targeted location. There is no secret: the cells that have recruited the most in the past three years are those that have grown as much in quality as in quantity. Indeed, the dissemination of material has the advantage of initiating a dialogue with young people who are sometimes more or less political, which allows us to assess the correctness of our discourse and, after collective analysis according to the principles of democratic centralism, to rectify it. if needed. In addition, a diffusion allows us to consolidate our cells by creating bonds of camaraderie or even more (let’s pass the details!) A significant element for our generation is becoming more and more victims of capitalist alienation.

Our biggest organisational priorities are strengthening the clubs as collectives and increasing contributions to our press. It is important for clubs to have independent political action, not for the sake of being sectarian but to help raise the profile of the league. Relaunching our country wide ‘Get out of NATO’ campaign will help clubs, especially those not based on a campus. The Commissions we called at our last plenum have already started to help our organisational strength. However more work needs to be done on training and retention of cadre. We need to organise educationals on anti-communism and working in mass movements. We need to trust that comrades will develop practical skills through assignments in the mass movements, but it is important to continue theoretical study through the club. 

Our press needs to be the backbone of our organisation and what unites us across thousands of kilometres, as well as the cornerstone of our educational work and debates around strategy and tactics. Recognition and thanks is due to the work of comrade Igor from the Central Committee for taking on the crucial role as editor. 

The Central Committee elected comrade Jeremy to the crucial position of central organizer. His role will be to connect the work of the clubs to the Central Committee and coordinate our central campaign and newsletter. 

We have the basis for a new club on Vancouver Island, and contacts working with the party in Calgary, Hamilton, Windsor, and St Johns. Clubs have made important contributions to Cuba solidarity campaigns with fundraising and volunteering with notable efforts in Victoria, Vancouver, Edmonton, and Toronto. Comrades have made inroads with new formal campus ‘clubs’ recognized at universities where the league has not had a presence in years. 

There has been no date or venue set for the next World Festival of Youth and Students, we must stay alert as we have a key role in pulling together the delegation from Canada. With that in mind we propose that the incoming central committee look into the possibility for a regional festival hosted by the league. We are encouraged by the consistent campaigning of WFDY coming out of the last regional meeting. 

As young communists, our role is to commit to building the movement for Socialism-Communism. The tasks ahead require discipline and fortitude, as well as opportunities to learn and grow collectively, to forge new and lasting bonds as comrades, and to do more than simply interpret the crisis around us. The ruling class has plenty of distractions for young people, and it is our role to raise class consciousness and bring our generation to the fight. We impose the daunting challenge on ourselves to build the League, but that load is lightened with every new recruit. We stand on the shoulders of our forebears as we continue their work in the YCL-LJC’s second century, a century that will see the workers of the world abolish bourgeois private property and build Socialism. We have a long and proud history of struggle for the emancipation of working people, both in Canada and around the world — and as young communists it is our job to continue the history of struggle and keep the red flag flying!

As young communists, we do not shy away from tough questions or debates. This convention will address the program and constitution. Nothing is sacrosanct other than our Marxist-Leninist principles. Audacity, more audacity, always audacity. 

The youth are the future, the future is Socialism!