draft resolution on some ideological issues- 20th congress of cpim

8/3/2019 Draft Resolution on Some Ideological Issues- 20th Congress of CPIM

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DRAFT RESOLUTION ON SOME IDEOLOGICAL ISSUES FOR THE

20TH CONGRESS OF CPIM

(Adopted at th e Central Commit tee M eeting held on January 17-20, 2012 at Kolkata)

I

I N TRODUCTI ON

1.1 The current global crisis of capit alism, more intense in many of it s manifest ations than t he great

depression of t he 1930s, has once again resoundingly demonst rated capit alisms inherent oppressive

and exploit ative character. This crisis is imposing great er miseries on t he vast majorit y of t he worlds

population. This crisis is also increasingly demonstr ating that imperialism, notwit hst anding all

ideological effort s t o obfuscate its exist ence and role, is leading global capitalism in this off ensive

against humanit y. Thus, imperialisms quest for global hegemony is t he fount ainhead that cont inues t o

deny humanity it s complet e emancipat ion, liberat ion and progress.

1.2 It is now t wo decades since the CPI(M)s 14t h Congress resolut ion in January 199 2 had concluded

t hat following the disint egrat ion of t he Soviet Union, t he balance in the international correlat ion ofclass forces had shift ed in favour of imperialism. These developments gave rise to profound polit ical,

economic and social changes on a world scale. These changes were accompanied by an int ense

ideological offensive mounted wit h the imperialist prognoses t hat Marxism and socialism are dead.

Capit alism was proclaimed as eternal and it was claimed that it const itut es the end of human social

evolut ion.

1.3 During the course of t hese t wo decades, this imperialist off ensive has, indeed, sharply int ensif ied

in all spheres, as apprehended. This offensive is accompanied by the dominance of imperialist

globalizat ion that t oday has virt ually drawn int o it s vort ex all t he count ries of t he world.

1.4 It is, thus, incumbent upon us, as an inseparable part of our effort s for human emancipat ion andliberat ion, to make a Marxist - Leninist analysis of t he present day world development s and how they

impact both on the world sit uation, i.e., t he balance in the internat ional correlat ion of class forces, and

how t his impact s upon t he advance of our st ruggles t o accomplish our revolut ionary st rategic object ive

in our country.

1.5 The Communist Part y of India (Marxist) was founded on the basis of an int ense batt le against t he

revisionist deviation t hat had gripped t he then unit ed CPI, gravely t hreat ening to derail t he Indian

Communist movement and, hence, the liberat ion of our people. Making a decisive break af ter an int ense

inner- Party ideological st ruggle cent ered around the strategy and t actics of t he Indian revolution and a

correct evaluat ion of t he composit ion and charact er of t he Indian ruling classes, the CPI(M) emerged to

uphold the revolut ionary t enets of Marxism-Leninism, commit ted to apply these to t he concrete Indian

conditions.

1.6 Soon aft er, the CPI(M) had to contend wit h t he Left advent urist sect arian deviation and

ideologically combat t hese t rends t hat, once again, threatened t o derail the Indian Communist

movement . This ideological bat t le was accompanied by confront ing and overcoming the vicious physical

att acks in which many of our comrades were martyred.

1.7 The success of t he struggles against t hese deviations, combined with our inherit ance of t he legacy

of t he glorious milit ant st ruggles[1] of t he Indian people, result ed in the emergence of t he CPI(M) as t he


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st rongest and leading Communist and Left force in the count ry. This resoundingly vindicat ed t he

correctness of our Marxist- Leninist positions in t hese ideological bat t les.

1.8 The CPI(M)s struggle against ideological deviations and its steadfast effort t o uphold the

revolutionary cont ent of Marxism- Leninism was based on a continuous joining of issues on all

deviations domest ic and internat ional t hat manifested themselves, oft en ideologically confront ing

both the int ernat ional Communist giant s of t he time t he CPSU and the CPC. It is t hese ideologicalst ruggles that have steeled our Part y t o emerge not only as the st rongest Communist and Left force

but also capable of exert ing pressure and influence on t he course of Indias nat ional polit ics.

1.9 Since the Burdwan Plenum (1968), such ideological joining of issues has been a necessit y for

fur thering our Part ys st rategic object ives. The 14t h Congress resolution On Cert ain Ideological Issuesin

t he wake of t he dismantling of socialism in t he former USSR and Eastern European count ries was

followed by the updating of our Part y Programmein 2000 in t he light of our analysis of t he changes

t hat occurred. This was followed further by enriching our analysis in subsequent Party Congresses

concerning t he new world situation post t he disint egration of t he Soviet Union and the rise of

imperialist globalization.

1.10 While imperialist globalizat ion is imposing unprecedented miseries on humanity, t he popularresistance against this off ensive is also on t he rise. This is sharply expressed in todays world sit uat ion

part icularly in Lat in America. Such rising st ruggles are also grow ing in other part s of t he world as seen

in t he Occupy Wall St reet movement and not ably in Europe against t he imperialist neo- liberal

globalization onslaughts on the livelihood of the people, t hat have sharply intensified in the current

global capit alist crisis and recession. These rising struggles against the erosion of t he livelihood

standards of t he working class and other exploit ed sections of t he people constit ut e t he foundat ions

for consolidating and advancing revolut ionary st ruggles in the future.

1.11 The t ask of raising t hese st ruggles t o the level of an offensive against t he Rule of Capit al, in the

current balance of internat ional correlat ion of class forces will have to be undert aken by surmount ing

many challenges. The success of intensifying such st ruggles t o mount t he class offensive against t heRule of Capit al wil l decisively depend upon the sharpening of t he class st ruggles under t he leadership of

t he working class. This, in t urn, would be possible only when the subjective factor of t he revolut ionary

st ruggle, i.e., t he strengt h of t he class unity in st ruggle of all exploited sect ions of t he people for

liberation and emancipat ion, under t he leadership of t he working class, is st rengthened and

consolidated.

1.12 Under these circumst ances, part icularly when fast moving development s cont inue t o take place,

it is imperat ive t hat we st rengt hen our revolut ionary resolve t hrough a scient ific Marxist - Leninist

analysis of t he ideological issues and challenges thrown up by these development s, wit h t he singular

aim of st rengthening the class st ruggles for human liberation.

I I

TH E WORKI N G OF I M PERI ALI SM I N TH E ERA OF GLOBALI SATI ON

2.1 The CPI(M), steadfast ly upholding Marxism- Leninism and it s inviolable t ool of concrete analysis

of concret e conditions, evaluat es the working of imperialism in t he present concrete condit ions and it s

impact on India. The lat t er is of u tmost necessity to work out t he correct and appropriat e tact ics that

will advance our st rat egic objectives.


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2.2 Globalisat ion must be underst ood in it s t ot ality. The internal dynamics of capitalism, as Marx

has shown, leads t o t he accumulat ion and concent rat ion of capit al in a few hands. It is on t he basis of a

scient ific analysis of t he development of t his t endency that Lenin ident ified t he emergence and growt h

of imperialism from t he stage of monopoly capitalism. The Leninist analysis of t he polit ics of

imperialism t he last stage of capitalism laid the foundat ions for correct revolut ionary strategy and

t act ics for int ensifying class st ruggles leading, for t he fir st t ime in human history, t o the tr iumph of t he

prolet arian revolution t he great October Socialist Revolut ion of 1917.

2.3 This current phase of globalization, wit hin t he st age of imperialism, led t o gigant ic levels of

concent rat ion and cent ralizat ion of capit al and, hence, accumulat ion led by internat ional f inance capit al

during the last t wo decades. [2] Thisled to a reordering of t he world where t his capit al seeks unhindered

access across the globe in it s quest for profit maximizat ion. This, in it self, imposes condit ions for t he

removal of all rest rict ions on the flow of this capit al, the essence of financial liberalizat ion. The

accompanying neo- liberal of fensive of economic reforms, seriously t hreat ens and undermines the

economic and, hence, t he polit ical sovereignty of t he nat ion- st at es, part icularly in t he developing

countries.

2.4 As we have noted in the past , the emergence of a new st age in history does not mean that t he

st age it self, during it s exist ence, remains immut able not undergoing any changes. In every st age, likesocialism in the t ransit ion towards Communism; like t he funct ioning of t he prolet arian State under

socialism, or, for that mat t er in t he st age of imperialism, various phases emerge as a result of

quant it at ive changes that lead to a qualit at ively new phase. The period of a stage in hist ory is, hence,

neither a linear process nor a one way t raff ic. This current phase of imperialism vindicat es rat her t han

repudiat ing the Leninist prognosis of t he charact er and the hegemonic role of f inance capital in t he

st age of imperialism.

2.5 This phase of globalizat ion unfolding when the polit ical correlat ion of class forces int ernat ionally

has shift ed in it s favour, permit s imperialism to pursue it s quest for profit maximisat ion relat ively

unhindered except, of course, in t hose count ries where t he st rength of popular peoples struggles have

mounted effective resist ance. Such pursuit has result ed in colossal levels of capit al accumulat ionleading to t he furt her consolidation of int ernat ional finance capit al (IFC). This is one of t he salient

feat ures of post - Cold War world capitalism. This scale of accumulation has also been subst antially

aided by the counter revolutions in t he USSR and Eastern Europe and t heir r e- ent ry int o the fold of t he

global capit alist market. Furt her, the st ruct ural changes in global capitalism, aided by technological

advances in informat ion and communications, result ed in relocat ing product ion and outsourcing of

business operat ions t o areas where natural resources are abundant and labour power cheap.

Maximizing prof it s in this manner has vast ly aided raising t he levels of accumulat ion.

2.6 Unlike in Lenins t ime, however, IFC operat es not in the pursuit of specif ic st rategic interest s of

specific nat ion- states alone but int ernat ionally. While developed capit alist nation-st ates will continue

t o seek t o advance their specific int erests, IFC operat es in a world not riven by intense int er- imperialist

rivalry. It operat es in a world where such rivalry, at least t emporarily, is sought t o be muted. The very

character of t his internat ional finance capit al defines its effort s to operat e unhindered over the entir e

wor ld. On this score, it is oft en erroneously argued t hat t he world has moved beyond Lenins analysis of

finance capital and imperialism. Therefore, his analysis of imperialism, it is argued, is t oday outdated,

and hence, irrelevant .

2.7 Lenin, analyzing the emergence of finance capital, coalescence of banking capital wit h indust rial

capital, in his t ime, concret ely analysed the impact of this phenomenon and concluded that capit alism

had undergone a qualitat ive change which went beyond the tradit ional role played by finance capital,


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leading t o the emergence of a new st age imperialism. This was charact erized by five

feat ures [3] amongst which t he compet it ion bet ween different imperialist centres led t o inter-

imperialist wars in pursuit of a re- division of t he world for t heir profit maximizat ion. This was

resoundingly vindicat ed by the two world wars in t he first half of t he 20 t h cent ury. Lenin was, thus,

employing his own inviolable principle of concrete analysis of concrete condit ions in his t ime in order

t o correctly assess t he int ernational correlat ion of class forces t hat would assist t he advance of t he

Russian Revolut ion by breaking the weakest link in t he imperialist chain.

2.8 However Lenin, wit h penetrat ive clarit y, ant icipat es that in t he imperialist stage, wi th t he rise

of finance capit al, The business operat ions of capitalist monopolies inevit ably lead to t he domination

of a financial oligarchy. He defines imperialism wit h t he domination of finance capit al as t he highest

stage of capitalism where the supremacy of finance capit al over all ot her forms of capital is

est ablished. Furt hering the analysis of t he feat ure of export of capital, Lenin ant icipat es the fut ure

saying, Thus finance capit al, lit erally, one might say, spreads it s net over all count ries of t he world.

Furt her, The characterist ic feat ure of imperialism is not indust rial but f inance capit al. [4]

2.9 Lenin, thus, ant icipates not only the dominance and leadership of finance capit al in the st age of

imperialism, but he also shows t hat t his process will lead to t he enmeshing of all forms of capital under

it s leadership in the pursuit of profi t maximizat ion. Clearly, therefore, it is not Lenins analysis ofimperialism t hat has been superseded. What has been superseded is the concrete condit ions of Lenins

t ime which he had prescient ly analysed, estimat ed, assessed and also ant icipated t he future course of

it s development. Lenins prognosis of the leading and dominant role of int ernat ional finance capital

under imperialism is today being resoundingly vindicated. It is thus incumbent upon t odays Marxist -

Leninists t o analyse, evaluat e and estimat e it s role in the current phase of imperialism in order t o

advance t he st rat egic revolut ionary object ives in individual count ries.

2.10 This preponderant dominat ion of IFC, however, does not suggest the cessat ion of int er-

imperialist contradictions. These not merely exist but are bound to intensify in the future, given the

basic capit alist law of uneven development . This leads to conflict s of int erest s bet ween capit alist

cent res given t heir relat ive fut ure st rengt hs oft en reflect ed, t oday, in the conflict of int erests overcont rol of wor lds resources or in seeking a reordering of t he world a new re-division for creat ing

specific spheres of influence. This can also manifest in future currency wars bet ween dif ferent

imperialist powers. Such conflict s also put pressures on socialist and developing count ries to revalue

t heir domestic currencies to benefi t imperialism.

2.11 Surplus under capit alism can only be generated in it s product ion process. How t his is

appropriat ed and deployed may generat e addit ional cash f lows. Under t he dict at es of int ernat ional

finance capit al, t he surplus appropriat ed t hrough the product ion process is so fur t her deployed in

different ways. Addit ionally, the avenues for cash flows are vastly enlarged through the creat ion of new

financial instruments to enhance market capit alization of the corporat es t hrough speculative tr ading.

Bubbles are t hus creat ed, which t emporarily inf late t he economy, but when t hese invariably burst , the

economy plunges int o a crisis.

2.12 Internat ional finance capit al is, t oday, thus enmeshed wi th indust rial and ot her forms of capital

in it s pursuit of profit maximisat ion. The IFC now leads the commonality of purpose to unleash fresh

att acks t o vast ly increase t he levels of capit al accumulat ion and prof it maximization even fur t her.

2.13 Such reordering of t he world for profit maximisation, under the dictates of IFC, defines neo-

liberalism. It operates, firstly, through policies that remove restrictions on the movement of goods and

capit al across borders. Trade liberalisat ion displaces domest ic producers engendering domest ic


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deindust rializat ion, part icularly in developing count ries. This also happens in the developed count ries

due t o relocation of production and business operat ions outside t heir count ries. So also liberalisat ion of

capital flows allows mult inat ional corporat ions t o acquire domestic productive asset s abroad (like our

public sector), vast ly enlarging capital accumulat ion.

2.14 Ot her ways of consolidat ing capit al accumulation are through t he imposit ion of deflat ionary

policies like rest rict ions on government expendit ures in the name of f iscal discipline (making availablelarger quant um of liquidity to IFC to mult iply speculat ive profit s) which leads t o the lowering of the

level of aggregate demand in the world economy; a shift in the t erms of t rade against t he peasant ry in

t he developing count ries; a rolling back of t he St at e sector in providing social services globally, more

pronounced in t he developing count ries, which increasingly become privatised and t he opening up of

huge new areas of public ut ilit ies for profit maximisation. Thus, a new feat ure of contemporary

imperialism is t he coercive prising open of new and hitherto non-exist ent avenues for profit

maximisation.

2.15 This new phase of imperialism pressurises large segments of t he bourgeoisie in developing

countries to t urn collaborators. In several of t hese countries, the st ruggle for decolonisation had been

fought under the leadership of t he domest ic bourgeoisie which, aft er independence, had t ried t o pursue

a path of relat ively autonomous capitalist development. While allying itself, as in India, wit h domest iclandlordism and compromising wit h foreign finance capit al, it had sought t o pursue a path of capit alist

development wit h a degree of autonomy, pursuing non- alignment in foreign policy which enabled it t o

use the Soviet Union t o bargain wit h imperialism. But t he inherent int ernal contradict ions of such

regimes, combined wi t h the collapse of t he Soviet Union and the emergence of int ernat ional finance

capital seeking to prise open t hese economies for fur t hering profit maximisat ion, alt ered the

perspective of t he bourgeoisie in t he developing count ries. From a posit ion of relative aut onomy, the

domest ic ruling classes of developing countr ies, notwit hst anding cert ain areas of conflict of int erests,

are increasingly moving t owards advancing the capit alist pat h of development wit h great er

collaborat ion wit h IFC and, t hus, embracing neo-liberalism.

2.16 All through the history of capit alism, accumulation t akes place in two ways: one is through t henormal dynamics of capit al expansion (appropriat ion) through the unfolding of it s production process

and the ot her is through coercion and out right loot (forcible expropriat ion), whose brut ality Marx

defines as the primit ive accumulat ion of capit al. Primit ive accumulat ion is oft en erroneously

interpreted as a histor ical cat egory primit ive vs. modern. For Marx and therefore Marxist s, primit ive

accumulation is an analyt ical cat egory t hat historically cont inues to co-exist wit h the normal dynamics

of capitalism. The process of primit ive accumulat ion has taken various forms in the past , including

direct colonisat ion. The aggressiveness of pr imit ive accumulat ion, at any point of t ime, is direct ly

dependent on the balance of int ernat ional correlat ion of class forces which eit her permit or inhibit t he

manifest at ion of such capitalist brut alit y. In t he current phase of contemporary imperialism, t he

intensificat ion of such brut al primit ive accumulat ion is assault ing a vast majorit y of t he people of t he

wor lds population, bot h in the developing as well as the developed count ries.

2.17 All over the capit alist world, especially in t he developing count ries like India, such assault leading

t o disinvest ment and privatisat ion of the St ate sector is nothing else but privat e accumulation t hrough

t he expropriat ion of Stat e assets. Public ut ilit ies like wat er and energy, public services like education

and healt h, have increasingly become domains of private accumulat ion of capit al. Control over mineral

resources is increasingly becoming private. Agricult ure is increasingly being opened up t o mult inat ional

seed and market ing companies leading to the virt ual dest ruct ion of t raditional agricult ure in the

developing count ries, throwing the peasantr y into acut e dist ress. The removal of t rade tarif fs and

imposit ion of Free Trade Agreement s is leading t o deindust rialisation in many developing count ries. In


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direct cont rast t o t he freedom of movement for capit al, the st rict domest ic immigrat ion laws in

developed countries leads to intensified exploit at ion and oppression while maximizing prof it s. Common

resources like forests, mines, wat er, etc., are increasingly being taken over as private propert y.

2.18 Under capit alism, the State, what ever be it s form, is always the dictat orship of t he bourgeoisie.

Under contemporary imperialism, the role of t he State changes in accordance with it s current needs to

advance the interests of IFC and it oft en act s at it s dictates. The Stat es abdication of socialresponsibilit ies and obligat ions towards the people, t herefore, does not mean it s wit hdrawal f rom

economic act ivit ies. It s role changes to brazenly advance t he int erests of IFC. In the process, not only

does it relinquish it s social responsibilit ies but also undermines democratic instit ut ions, subvert s

peoples sovereignt y over t he law making processes and increasingly adopts an authorit arian character.

2.19 Such an assault of t he process of primit ive accumulat ion has opened up hithert o unknown

avenues for large-scale corrupt ion. Many a regime has fallen, bot h in developed and developing

count ries, due to corrupt ion scandals. [5] The large-scale loot in India t hrough mega scams is mainly

due t o such new avenues creat ed by neo- liberal reforms under imperialist globalizat ion.

2.20 While bot h the processes of capit al accumulation simult aneously operat e, this accumulation

t hrough forcible expropriat ion as opposed t o t he normal and nat ural process of capit alismsaccumulation t hrough appropriat ion has become an import ant feature of cont emporary imperialism.

I I I U N SU STAI N ABI LI TY OF N EO-LI BERAL GLOBALI ZATI ON AN D TH E CAPI TALI ST CRI SI S

3.1 Such unfolding of imperialist globalizat ion is, as we had analysed in our Part y resolut ions,

unsust ainable. Furt her, the 14t hCongress resolut ion underst anding t hat was reiterated in our

Part y Programme establishes t he validit y of Marxs analysis of capit alism as a syst em t hat can never be

eit her exploit ation- fr ee, or crisis- free. No amount of reform of capit alism can eliminate eit her or both

of t hese fundamental charact erist ics as these are inext ricably locat ed in the very product ion process of

capitalism generating it s basic cont radiction bet ween it s social nature of product ion and individualnature of appropriat ion. This, in it self, negat es all illusions spread by social democracy of reforming

capit alism t o have a human face.

3.2 The charact er and composit ion of labour manual or mental (intellectual) makes lit t le

difference to t his process of exploit ation. This exposes the fallacy of the argument t hat since t he

character of t he working class (manual labour) has significant ly altered in modern t imes from t hat of

Marxs t ime, and also, as t he proport ion of manual labour has significant ly declined since Marxs t ime,

Marxs analysis is no longer valid. As long as labour power produces in the capit alist product ion process,

it is exploit ed and that is t he source of surplus value and hence profit t he raison dt re of capitalism.

3.3 However, as the proport ion of mental (intellectual) labour grows, it generat es illusions

amongst sect ions of t hem t hat t hey are no longer exploit ed but are now part ners of capit alism. Lenin

spoke of t he labour arist ocracy. While disrupting the class unit y of t he exploit ed, some of t hese

sect ions t end to fall prey to such illusions, t hus but t ressing neo- liberalism. This tendency needs t o be

ideologically challenged and combat ed.

3.4 The current neo- liberal offensive, however, has generated tendencies t hat make it

unsust ainable. Two import ant feat ures of globalisation need to be reit erat ed to establish this. First ,

t his process has been accompanied by growing economic inequalit ies bot h wit hin count ries bet ween

t he rich and poor, and bet ween the advanced and the developing countries. [6 ] Secondly, globalisation


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has given rise t o the phenomenon of jobless growt h. This is so because the trajectory of profit

maximisat ion invariably replaces human labour by investing more in developing t echnology rat her t han

developing human resource capabilit ies. The growt h of employment, during this period, has always been

lower t han the GDP growt h rat e globally. [7] Both these feat ures put t oget her mean that t he

purchasing power in the hands of t he vast majorit y of t he worlds populat ion has been declining.

3.5 Capit alism inevitably plunges int o a crisis when what is produced is not sold because surplusvalue cannot be transformed into profit. Such a crisis will continue to recur in different forms under

t his globalizat ion phase of imperialism [8 ] making it unsust ainable. As is t he character of capit alism

when confronted with a crisis situation, it seeks to overcome this through various ways. In the

process, capit alism may temporarily ride over a current crisis but it , inevit ably, lays the foundat ion for a

deeper crisis in t he future.

3.6 Under t hese circumst ances, capitalism chose one way t o sust ain and expand it s levels of

profit s increasing peoples purchasing power by enticing them t o procure loans whose spending will

maintain the levels of profi t generat ion. However, when t he time comes to repay t hese loans, there is

t he inevit able default , given the declining economic stat us of t he vast majorit y of t he borrowers. This is

precisely what happened in t he USA, engulfing the world capit alist system in t he recent sub-prime loan

crisis leading to large- scale financial defaults. [9 ]

3.7 Furt her, capit al, in search of higher profit s, cont inuously creat es new commodit ies t hrough

which it expands its market operat ions. As Marx had said, product ion not only creates object s for t he

subjects, but also creates subject s for t he objects. [10]Under t he rule of int ernat ional finance capital,

capitalism creat es new financial commodit ies to vast ly enlarge speculat ive avenues for profit

maximisation. One of t hese that has played havoc and generated the current crisis is t he t rade in

derivat ives. [11]

3.8 It is t his pat hological drive t o maximise profit s at any cost , the inherent charact er of t he

capitalist syst em and not t he individual greed of some or weakness of regulatory mechanisms that

is the root cause of the present crisis.

3.9 If profit s were reemployed into enlarging productive capacit ies, t hen through t he consequent

employment generat ion, the purchasing power of t he people would grow leading to larger aggregat e

demand, which, in turn, would give a fur t her impet us to indust rializat ion and growt h of t he real

economy, i.e., accumulat ion t hrough expansion and, thus, appropriat ion. The gigant ic accumulat ion of

internat ional f inance capital, however, in it s search for super profit s cont inuously seeks new

speculat ive avenues for prof it maximization beyond this process.

3.10 Therefore, under globalizat ion, wit h sharp decline in t he purchasing power in the hands of the

majorit y of t he worlds population, finance capit al, in it s eagerness for quick profit s, chooses t he

speculat ive rout e of art ificially enlarging purchasing power by advancing cheap (subprime) loans and

creat ing speculat ive bubbles. Profit s are made while these loans are spent but when repayment is due

comes default , ruining the loan taker and also crippling the syst em. This is precisely what happened on

a gigant ic scale result ing in the current global capitalist crisis.

3.11 In t he absence of a powerful polit ical alt ernat ive, capit alism will emerge from t his crisis but at

t he expense of f urt her int ensifying exploit at ion and through the process of int ensifying primit ive

accumulation. This manifest s in the current imperialist aggressiveness in all spheres.


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3.12 It is precisely such a process of recurr ing crises t hat is unfolding. As is the nature of t he

capitalist St ate, it sought t o overcome this crisis by giving bailout packages of st aggering amounts t o

t hose very financial giant s who, in t he first place, caused t his crisis. This inevit ably permit t ed these

financial giants to st age a resurrect ion and massive profit generat ion [12] while imposing crippling

burdens on the government s of capitalist count ries who had to resort t o large- scale borrowings to

finance such bailout packages. True to it s character, capit alism has safeguarded, in fact expanded, it s

avenues of profit generation while creat ing huge sovereign debt. Corporat e insolvencies, thus, havebeen convert ed int o sovereign insolvencies, affect ing many count ries of t he European Union as well as

t he USA it self.

3.13 The burden of these sovereign insolvencies, again t rue to t he nature of capit alism, is being

passed on as unprecedented burdens on t o t he working class and working people. [13] In t he name of

reducing expenditures to meet t he repayment of t his debt , aust erit y packages t hat drast ically cut t he

exist ing benefit s and right s of t he working class and t he working people are being imposed. Thus, once

again, capit alism is seeking to emerge from t his crisis by int ensifying the exploit at ion of t he people.

3.14 This very effort by global capit alism, in it self, is laying the seeds for a much deeper crisis that

has already set in. Wit h such austerit y measures which sharply increase unemployment and drast ically

reduce the purchasing power of t he people, recessionary condit ions are get t ing int ensified. [14]

3.15 However, as not ed earlier, irrespect ive of t he severit y of the crisis, capitalism never collapses

aut omat ically. Recollect Marxs analysis t hat capit alism emerges from every crisis st ronger by

dest roying a part of t he product ive forces to restore the balance bet ween the development of

productive forces and the exist ing product ion relations under capit alism. This is a process that f urt her

intensifies exploit at ion.

3.16 Capitalism, t herefore, requires to be overt hrown which decisively depends on t he st rengt hening

of t hat material force in society led by the working class which can mount , through popular st ruggles,

t he int ensificat ion of t he class st ruggle to launch t he polit ical offensive against t he Rule of Capital. The

building of t his mat erial force and it s str engt h is the subject ive factor , t he st rengt hening of which isan essential imperative. The object ive factor t he concrete sit uation of t he crisis however conducive

it may be for a revolutionary advance, cannot be transformed into a revolutionary assault against t he

Rule of Capital without the strengthening of this subjective factor.

3.17 Various intermediary slogans, measures and t actics will have t o be employed by the working

class t o sharpen class st ruggles and to meet t he challenges of these real condit ions in order t o

st rengt hen the subject ive factor and, t hus, advance t he process of revolutionary t ransformation in

their respective countries.

I V

TH E POLI TI CS AN D I DEOLOGY OF I M PERI ALI ST GLOBALISATION

4.1 Following the shift in favour of imperialism in t he internat ional correlat ion of class forces, USA

has embarked to consolidate its global hegemony by achieving it s three declared object ives.

4.2 The first seeks the dissolution of t he remaining socialist countries; the second, to render

impotent either through defeat or co- opt ion, t hird world nat ionalism, which materialized the Non-

Aligned Movement f ollowing the decolonisat ion process; and, finally, the establishment of an

unequivocal and unambiguous milit ary and economic superior it y over t he world in general and

part icularly over perceived compet it ors.


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4.3 This new wor ld order is designed to operate in all spheres. [15] This, on the one hand, led to

unleashing unilateral wars and the military occupation of Iraq. On the other hand, it led t o the

st rengt hening of the US military machine. [16] At t he same t ime, the NATO, whose need for exist ence

should have simply disappeared wit h the end of t he Cold War, was furt her strengthened as

imperialisms global war machine. [17]

4.4 In order t o establish and cont inue it s unquestioned superiorit y, US imperialism also required t o

increasingly cont rol t he worlds economic resources, especially energy sources, and part icularly oil .

[18] Hence it s preoccupat ion in West Asia. Afghanistan occupies the central posit ion in the US strat egy

for t he economic cont rol of t he oil and gas resources in West and Cent ral Asia. [19] The milit ary

propping up of Israel and the perpetuation of t he West Asia crisis is a direct consequence of t his need

t o cont rol the polit ics and regimes, elevat ing regime change as imperialisms legit imate right in order

t o est ablish cont rol over the resources of t his region.

4.5 The Arab Spring saw people rise in revolt against US imperialism support ed, or propped up,

authorit arian regimes in Tunisia, Egypt , Yemen and ot her count ries. This reflect ed t he popular urge for

democracy, civil libert ies and bet t er livelihood. Imperialism is brazenly int ervening milit arily like in Libya

or backing Saudi Arabian intervent ion in Bahrain, to influence and cont rol t he new emerging regimes,having lost some of it s most t rust ed allies in the region. While these developments will unfold furt her,

inter- imperialist contradict ions are sharpening in t his sphere. West Asian powers like Iran, Turkey,

Syria are also seeking a reposit ioning of t heir regional inf luences.

4.6 It must be borne in mind that wherever imperialism succeeded in affect ing a regime change, it

only created space for ult ra right wing, oft en religious extremist forces by syst emat ically at t acking t he

Left and progressive forces. The weakening of t he lat t er is, again, a declared object ive of imperialism, as

t hey represent t he genuine and consistent ant i- imperialist force. Imperialism and Muslim

fundamentalist forces work t o weaken the Left forces. US milit ary occupation of Iraq has sharpened

t he Shia-Sunni divide and dest royed the secular fabric of that society. Earlier, in Iran, in it s urge to

retain control of oil, the installat ion of Shah regime by the USA led t o the syst emat ic and brut alvict imisation of t he Communist s and progressive nat ionalist s leaving space open only for Islamic clerics

t o emerge as the principal opposit ion. In Afghanistan, it s drive to t opple t he regime of t he progressive

forces support ed by t he t hen Soviet Union result ed in t he creation of t he Mujahiddin- Taliban- Osama

bin Laden nexus US imperialisms Frankenst ein. Such dangers appear imminent in t he current Arab

Spring development s as well in many of these count ries.

4.7 These effort s by imperialism to impose a unipolar world order under it s tut elage are but t ressed

by a powerful ideological offensive. Imperialism equates democracy wit h free market s. Under t his garb

and in t he name of upholding its concept ion of democracy, it intervenes polit ically and milit arily against

regimes which oppose it s hegemony, challenge neo- liberal economic reforms and t he imposit ion of f ree

markets.

4.8 Imperialism, in the name of upholding so- called human right s and universal values, milit arily

int ervenes against independent sovereign nations. While masking it s brazen human right violat ions

t hrough milit ary int ervent ions, it has intervened t o balkanize former Yugoslavia on this pretext. The

bourgeoisie of t he advanced capit alist count ries, which had earlier championed nat ional sovereignty as

being sacrosanct , are today milit arily int ervening t o subvert and negat e nat ional sovereignty of

independent countries in t he name of prot ect ing human rights.


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4.9 Following the 9/11 at t acks on t he World Trade Cent er in New York, t he Global War Against

Terror launched under t he leadership of US imperialism is being used as the just if icat ion for brazen

milit ary int ervent ion, as seen in Iraq and Afghanistan and the t hreat s against Iran today, for t rampling

nat ional sovereignt y and to impose a regime change to suit it s interest s. State t errorism pract iced by

imperialism and individual t errorism unleashed by fundamentalist out fi t s feed on each ot her. The

st ruggle against t error cannot succeed unless both t hese dangers are eff ect ively fought . Like t he war

against Communism was used as the pret ext during t he Cold War t o just ify imperialist milit aryintervent ion, the war against t error is being used today to violate the nat ional sovereignt y of

independent count ries and the basic human rights of it s people.

4.10 Imperialism has unleashed vit riolic ant i- Communist propaganda and has current ly equated

Communism with t ot alit arianism and fascism. The European Parliament is seeking to enact laws and

t aking measures equat ing Communism wit h fascism. In many East European count ries, Communist

symbols and act ivit ies are legally banned, like in t he Czech Republic, Poland, etc.

4.11 Socialism cont inues t o be denounced as authorit arian and the ant it hesis of t he imperialist

definit ion of human rights and universal human values. The ideological offensive against t he socialist

count ries is focused on the so- called human rights violat ions and denial of individual libert ies. US

imperialism cont inues it s criminal economic blockade against Cuba under t his pretext .

4.12 The ideological war to establish t he int ellect ual and cultural hegemony of imperialism and neo-

liberalism has been on the offensive during t his period. Aided by this very process of globalisat ion and

t he vast ly elevated levels of t echnologies, there is convergence of informat ion, communicat ions and

ent ertainment (ICE) t echnologies into mega corporat ions. [20 ] This monopolisat ion of the sphere of

human int ellectual act ivit y and t he cont rol over disseminat ion of informat ion through the corporate

media is a salient feat ure of t his period t hat seeks to cont inuously mount an ideological offensive

against any cri t ique or alt ernat ive to capit alism. The cultural hegemony t hat such a globalisat ion

process seeks is expressed in t he need to create a homogenisat ion of public t aste. The more

homogenous the taste t he easier it is t o develop technologies for t he mechanical reproduct ion of

cultural product s for large masses. Commercialisat ion of cult ure is a natural corollary of suchglobalisat ion. Viewed in t erms of class hegemony, t he cult ure of globalisation seeks to divorce people

from t heir act ual realit ies of day to day life. Cult ure here acts not as an appeal t o the aesthetic, but as

a dist ract ion, diversion from pressing problems of povert y and misery.

4.13 This ideological offensive unleashed by imperialism as a part of it s overall effort s t o st rengt hen

it s hegemony needs to be resolut ely combat ed in order t o achieve humanit ys revolut ionary advance.

V

TH E PERI OD OF TRAN SI TI ON AN D W ORLD CAPI TALI SM TODAY

5.1 The 14t h Congress resolution On Cert ain Ideological Issueshad concluded t hat t he collapse of

t he Soviet Union and the socialist countries of East ern Europe negates neit her Marxism- Leninism nor

t he ideal of socialism. Furt her, these reverses cannot erase t he fact t hat socialism made a decisive

cont ribut ion in uplif t ing t he levels of qualit y of human civilization t o hithert o unknown higher levels. [21]

5.2 Despit e the unprecedent ed and pat h- breaking advances made by socialism in t he 20 t h century,

it must be borne in mind that all socialist revolut ions barr ing a few (not all) in East Europe took place in

relat ively backward capit alistically developed count ries. The socialist countr ies removed one- t hird of

t he world market from capit alism. This, however, did not subst ant ially affect eit her t he levels of

advances already made by world capit alism in developing t he productive forces, or in capit alisms


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capacit y t o fur t her develop t he product ive forces on the basis of scient if ic and technological advances.

This permit t ed world capitalism t o overcome t he set backs caused by socialist revolut ions in the

20 t hcent ury t o develop the product ive forces and furt her expand the capit alist market. Given the then

exist ing correlat ion of class forces int ernat ionally, imperialism achieved the expansion of t he capitalist

market t hrough neo-colonialism.

5.3 On the ot her hand, the faster pace and qualit atively higher advances made by socialism, in arelat ively short span, led t o a belief t hat such advances were irreversible. The Leninist warning that t he

vanquished bourgeoisie will hit back wit h a force a hundred t imes st ronger was underest imated.

5.4 Such an underest imat ion of t he capacit ies of world capit alism and overest imat ion of socialism

was reflected in the assessment of t he wor ld Communist movement . We had in the 14t h Congress

reassessed t hese est imat ions cont ained in a statement issued by 81 part icipat ing Communist Part ies

in 1960 which concluded t hat the immediat e inevit abilit y of t he collapse of capit alism due to it s t hird

phase of t he general crisis was a grave error in evaluat ing the then current wor ld realit ies, t hat

retarded t he advance of world socialism.

5.5 Further, socialism was perceived as a linear progression. Once socialism was achieved, it was

erroneously t hought t hat t he fut ure course was a st raight line wit hout any obstacles t ill t heatt ainment of a classless, Communist society. Experience has also confirmed that socialism is the

period of t ransit ion or, as Marx said, the fir st stage of Communism t he period bet ween a class-

divided exploit at ive capit alist order and the classless Communist order. This period of t ransit ion,

t herefore, by def inition, implies, not the extinct ion of class conflict s but t heir int ensificat ion, wit h world

capitalism trying to regain it s lost t err it ory. This period, therefore, was bound to be a prot ract ed and

complex one wit h many a twist and turn. This was part icularly so in these countries which were

capitalistically backward at t he t ime of t he socialist revolution. [22]

5.6 The success or failure of t he forces of world socialism in t his st ruggle, in t his period of

t ransit ion, at any point of t ime, is determined both by t he successes achieved in socialist

construct ion, [23] t he internat ional and int ernal correlation of class forces and their correctassessment. Incorrect est imat ions leading t o an underest imat ion of t he class enemy bot h wit hout and

wit hin the socialist countries and t he overest imat ion of socialism had created a situation where the

problems confront ing the socialist count ries were ignored and so were the advances and consolidat ion

of world capit alism.

5.7 In the 21st century, t herefore, while drawing invaluable lessons from t he experience of socialism

in the USSR and East European countr ies, it is clear t hat t he process of t ransit ion from capit alism t o

socialism in t he 21st century cannot be a repet it ion of these experiences.

5.8 One of t he import ant inerasable impacts of t he peoples st ruggles worldwide, inspired by

socialism in t he 20 t h cent ury, has been t he strengt hening of democrat ic rights and civil libert ies (for

instance, amongst many others, grant ing women the right t o vot e) accompanied by hithert o unknown

benefi t s to t he working class and t he working people in t erms of social securit y and welfare that

capit alism was forced to concede. Hence, these right s, t oday considered universal are an outcome of

peoples struggles, and not t he chari ty of t he bourgeoisie.

5.9 This era of t ransit ion and t ransformat ion towards socialism in the 21st century, thus, t hough

inevit able in t he final histor ical vision, is bound to be a prot ract ed st ruggle. It is t he t ask of t he

Communist s, the working class, and all progressive sect ions to work for t he hast ening of this process


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t hrough t he intensif ication of class st ruggles, in respect ive count ries, while imperialism will

cont inuously seek t o push such an event ualit y even furt her back.

5.10 The st ruggle for socialism in t he 21st century must, therefore, be the struggle for the

est ablishment of a syst em t hat is f ree from exploitat ion of man by man and of nat ion by nat ion. Such a

system must be based on furt her st rengt hening of t he democrat ic rights and civil libert ies of the

people. Such a system must est ablish it s superiori t y over capitalism in achieving higher levels ofproductivit y and product ive forces based on t he principle of t ransit ion from, to each according t o his

abilit y, to each according t o his work eventually leading tow ards a Communist society where the

principle of t o each according to his need would prevail. Such superiorit y must be established, t hrough

t he increasing part icipat ion of t he popular masses, in all spheres of social exist ence polit ical, social,

cultural, et c.

5.11 The 14t h Congress resolut ion has given our underst anding on democracy under socialism; the

forms of propert y under socialism; and t he relat ionship bet ween plan and the market , many of which

have been incorporated in our updat ed Part y Programme. These continue to guide our underst anding.

5.12 The social ownership of t he means of product ion under socialism cannot be mechanically

equated wit h the Stat e-owned sect or alone, t hough it const itut es it s bedrock. The socialist State,t hrough the exist ence of various forms of propert y, must ensure that t he economic lifeline is under t he

control of t he St at e. In other words, socialism in t he 21st century must est ablish t hat polit ics will

det ermine its economics unlike under capitalism where economics (prof it maximizat ion) det ermines

its politics.

WORLD SOCIAL CONTRA DICTI ONS

5.13 This period of t ransit ion in t he current phase of imperialism is also a period where all the major

world social cont radictions will sharpen in different degrees and in diff erent spheres. The fundament al

cont radict ion bet ween labour and capit al under capit alism is acutely int ensifying in the present

situation of crisis and recession. The effort s by imperialism t o consolidat e its hegemony, while, on t heone hand, seeking to draw t he ruling classes of t he developing countries under it s tut elage, on t he

ot her, is leading t o t he int ensificat ion of t he cont radiction between imperialism and t he peoples of t he

developing countries. Int er- imperialist cont radict ions also manifest t hemselves in diff erent forms in

different spheres, while t hey are current ly mut ed in intensifying global exploit at ion for profit

maximisation. The cent ral cont radict ion of t his period of t ransit ion remains between imperialism and

socialism. Any of t hese can come to t he forefront given world developments at any part icular

conjecture, wit hout replacing t he cent ral cont radict ion.

5.14 Amongst t he mult it ude of cont radict ions that exist at any point of t ime, the int ernational

Communist movement recognizes t he above four as the major wor ld social cont radict ions that

influence and determine the pace and charact er of t his period of t ransit ion. In recent years, however,

t he fundament al contradict ion of capit alism bet ween the social character of product ion and the private

character of appropriat ion manifests it self in a very serious degradation of t he global environment in it s

effor t s for profit maximizat ion. This has become more accentuat ed in t he period of imperialist

globalizat ion. This cont radiction is t hreat ening to assume proport ions of creating serious imbalances

t hrough global climate changes posing grave dangers for human exist ence it self. This has also set in

mot ion a new element in the int ensificat ion of the cont radict ion between imperialism and t he

developing countries, wit h t he effort s t o pass on the burdens of checking global warming and reducing

green house emissions on t o t he developing count ries. This is reflected in t he ongoing global

negot iat ions on climat e change where t he indust rialized countries are reneging from t heir earlier


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commitment of accepting common but differentiated responsibility, reflecting their earlier and

cont inuing pillage of t he environment for profit maximization and, hence, their greater r esponsibility in

correct ing this imbalance. They are seeking to negate the fundament al equalit y of carbon space for all

human beings in addressing the problems of environment al degradat ion. These effort s to pass on the

burdens of prot ecting global environment on t o t he developing count ries are part of t he global class

exploit ation t hat imperialism intensifies in todays condit ions. The st ruggle of t he peoples of t he

developing countries against t hese effor t s of imperialism const it ut es t oday an import ant element oft he internat ional class st ruggle against global capitalism.

5.15 Under t hese circumst ances, t he people of every country in the world will have t o meet t he

challenges of exist ing realit ies to shape their f uture dest iny how popular peoples st ruggles will be

st rengt hened to cont end wit h t hese challenges. How successful t hey will be in advancing the st ruggles

of t he people for social t ransformat ion will det ermine t he pace of t his t ransition.

VI

DEVELOPM ENTS I N SOCI ALI ST COUN TRI ES

6.1 In present- day realit ies, when the int ernational correlation of class forces has moved in favour

of imperialism, the exist ing socialist countries have embarked on a course of economic reforms t o meett he challenges posed by int ernational finance capit al- led and driven globalizat ion. Wit h liberalizat ion

sucking all countries of t he world into it s vortex, these reforms are based on the int egrat ion of t heir

economies with t he international market . The manner, in which t hese countries are meet ing those

challenges, in this period of t ransit ion, is an issue that requires serious examinat ion.

6.2 Is this process of reforms result ing in t he negat ion of socialism as measured by the peoples

ownership of t he means of product ion and the social appropriat ion of surplus as against t he individual

appropriat ion of it ? In all these count ries, negat ive t endencies have surfaced during the reform process

like rapid widening of economic inequalit ies, corrupt ion, nepot ism etc. These have not only been not ed

by the ruling Communist part ies themselves but visible effort s are t here t o t ackle, contain and correct

t hem. The main quest ion t hat arises is: is this process of r eforms leading to t he emergence of anexploit ative capit alist class that develops t he pot ent ial t o lead and succeed in a counter r evolut ion in

t he fu ture? Or, whether t his process of correlat ion of t hese forces under current reforms, in todays

world realit ies, will lead to t he consolidat ion and fur t her st rengt hening of socialism?

6.3 It needs t o be noted t hat every socialist revolution, based on a concrete analysis of concret e

condit ions, works out it s own approach t owards developing rapidly t he productive forces in order t o

est ablish socialism as a syst em superior to capit alism. How t his can be done is specific t o t he concrete

realit ies faced by t he specific revolut ions and class correlat ions, bot h domest ically and int ernat ionally.

CHINA

6.4 To a cert ain extent , what we find in the post - reform socialist China is a reflect ion of t he

t heoret ical posit ions t aken by Lenin regarding st ate capitalism during the NEP period. The main

quest ion involved is that of increasing t he product ive forces in a backward economy t o a level t hat can

sustain large-scale socialist construct ion. Lenin, during his time, on the basis of t he concrete

internat ional and domest ic sit uation, consistently endeavoured to rapidly bridge t he gap between

backward product ive forces and advanced socialist product ion relat ions. [24]The course of t his Soviet

history of socialist const ruct ion, however, took place under diff erent historical circumst ances. [25]


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6.5 In China today, what is being sought is to att ain t he conformit y bet ween the levels of

product ive forces and t he relat ions of product ion under socialism. The advanced socialist product ion

relat ions cannot be sust ainable at lower levels of productive forces. A prolonged period of low levels of

productive forces would give rise t o a major cont radict ion bet ween t he daily expanding material and

cult ural needs of t he people under socialism and backward product ive forces. The Chinese Communist

Part y (CPC) has concluded t hat i f t his contradict ion remains unresolved, then socialism it self in China

would be under t hreat.

6.6 The General Programme of the CPC characterized it s t ask t hus: China is at the primary st age of

socialism, and will remain so for a long period of t ime. This is an historical stage which cannot be

skipped in socialist modernisat ion in China, which is backward economically and culturally. It will last

for over a hundred years. In socialist construct ion we must proceed from our specific condit ions and

t ake t he pat h to socialism with Chinese charact erist ics.

6.7 The Chinese Communist Part y advanced a t heoretical conceptualisation of the primary stage of

socialism. This in fact , as noted earlier, conforms t o what Marx and Engels t hemselves had st ated and

what is accepted by all subsequent Marxist s: t hat socialism is t he tr ansit ory st age bet ween capit alism

and communism and hence const it ut es the first st age of a communist societ y. The CPC however has

gone a step furt her t o formulat e that wit hin this t ransitory st age, there will be diff erent phasesdepending on the levels of product ive forces at the t ime of t he revolut ion. This was syst emat ically

elucidat ed in t he 13 t h Congress of the CPC. China, being a backward, semi- feudal, semi- colonial count ry

at t he t ime of t he revolut ion, it was at a phase where the socialist t ransformation of it s economy will

have to be conduct ed from very low levels. It is t his process which t hey call the building of socialism

with Chinese characteristics.

6.8 In order t o achieve such a t ransformation, t he CPC put forward anot her t heoret ical formulat ion,

t hat of building a socialist market economy. By now, it is clear t hat as long as commodity product ion

exist s, there would be a need for a market t o exchange t hese commodit ies.

6.9 What is sought t o be created in China is a commodit y market economy under the cont rol of thesocialist state where public ownership of t he means of product ion will remain the mainstay; by which

t he CPC means first ly t hat public capit al predominates in tot al social capit al; secondly, t he st ate

economy cont rols the economic lifeline and plays a dominant role in the nat ional economy. Through

t his, they seek to prevent the economic polarisat ion and growing inequalit ies creat ed by private market

economy and ensure the common prosperit y of t he working people.

6.10 These reforms have cert ainly produced posit ive result s. The Chinese economy grew at a

phenomenal nearly 10 per cent a year for the last t hree decades, and povert y, measured in money

t erms, fell more than 80 per cent between 1981 and 2005. Initiat ing reforms, China had planned to

double the GNP of 1980 and ensure peoples basic living needs. The second step was to redouble the

output of 1980 and achieve initial prosperity by the end of the 20 t h century. The goals of t hese two

st eps have been met . All these have been possible not because China broke from t he Maoist past but

because it developed on the solid foundat ions laid by t he Peoples Republic of China during the f irst

t hree decades of cent ralised planning. Now t he third st ep aims to make the per capit a GNP reach t he

level of that of t he medium-developed count ries by t he 100 t h anniversary of t he PRC, i.e., 2049.

6.11 Aft er 33 years of reform, Chinas total economic output reached $5.88 t rillion in 2010, which is

16 t imes that of 1978 . Similarly, the share of Chinas per capit a income comparable t o the world

average grew from 24.9 per cent in 2005 to 46.8 per cent in 2010. The countrys total import and


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export volume grew f rom $20.6 billion worth in 1978 t o $2.974 t rillion wort h in 2010. Utilised foreign

direct investment from 1979 to 2010 totalled $1.048 trillion.

6.12 The reform process in China it self underwent various changes during the course of t hese

decades. Though they began in 1978, the fall of t he Soviet Union and the end of a socialist

countervailing force in the world creat ed the new global sit uation t hat we have assessed earlier.

Simult aneously t here were int ernal t urmoils like t he Tiananmen Square development s. Thesedevelopments led t o many a course correction in t he reform process. [26 ]

6.13 It is in t he 1990s t hat t here was a rapid expansion of the private sect or in various spheres and

t he weakening of public provisioning in healt h, educat ion and social services in the rural areas. Privat e

sector, by 2005, accounted for 50 per cent of t he value added in the industrial sector and employed

about double t he workers t han t hose employed in the St ate and collect ive ent erprises. However, latest

studies (prepared for US Congressional Commit t ee Report s) have shown t hat t he assets of State

Owned Ent erprises (SOEs) have grown from t he equivalent of 60 per cent of GDP in mid-20 03 to 62

per cent of GDP in mid-2010. The sect ors which SOEs must or plainly do dominat e accounted for 80

per cent of t he capitalizat ion of domestic st ock exchanges at the end of 2010. Similarly, t ax revenue

from private domestic firms is less than 15 per cent of the tot al. Of 42 mainland Chinese companies in

t he Fortune500 list of the worlds biggest firms in 2010, all but three were owned by the government.Chinas own list of t he 500 biggest Chinese companies spans 75 industries. In 29 of t hese not a single

private firm makes t he grade and in ten ot hers t hey play only a minor part . The government - owned

enterprises in these 39 stat e- dominat ed sect ors cont rol 85 per cent of t he t ot al asset s of all these

500 companies. The average size of SOEs is much bigger t han that of non- SOEs, though only

accounting for 3.1 per cent of t he tot al ent erprise number. In terms of average asset s, SOEs are equal

t o 13.4 t imes of non- SOEs. The average asset size of indust rial SOEs increased from 134 million RMB in

1999 t o 923 million in 2008, expanding by 589 per cent in 9 years. Meanwhile, the average asset s of

non-SOEs only moderately increased from 36 million t o 60 million, up by a dwarfed 67 per cent .

6.14 Thus, while t he privat e sector ent erprises in indust ries and services are increasing, it should be

also not ed that big St at e-owned enterprises control the st rategic sectors. The top 50 St at e-ownedenterprises have been consolidat ed and they hold t he commanding height s of t he economy in mining,

oil, steel, telecom, banking, energy, railways, port s etc.

6.15 The second phase of t he reforms focused on the rural areas and increased t he rur al- urban

divide. It is only aft er 20 06 t hat t he Chinese government has t aken st eps to abolish agricultural t ax,

increase the grain price subsidy and increase spending in rural health and educat ion. This shows t hat

State planning and intervent ion st ill operat es t o redress cert ain imbalances.

6.16 However, new problems and disturbing t rends are cropping up as a result of t hese

developments. They are mainly t he growing inequalit ies, unemployment and corrupt ion.

6.17 INEQUALITIES :For t he ent ire countr y, urban and rural, we not ice t hat by 2002, t he average

group income of the highest 10 per cent was 22 times higher than that of the lowest 10 per cent. The

last 18 years saw an over 13- fold increase in t he urban- rural income gap in absolut e t erms. China has

more billionaires today t han any other count ry ot her than the United States of America. In the t en

years from 1997, a period which saw t he remarkable economic boom, the share of workers wages in

nat ional income fell from 53 per cent to 40 per cent of t he GDP.

6.18 In an effort to redress some of t hese imbalances, the Chinese government st art ed t he

development- orient ed povert y reduct ion programme in t he rural areas in an organised and planned


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way. [27] In line wit h t he increase of economic and social development level and based on the changes

in price index, t he stat e gradually raised the national povert y line for rural resident s from 865 yuan in

2000 t o 1,274 yuan in 2010. Based on this change, the povert y- st ricken rural population decreased

from 94.22 million at the end of 2000 to 26.88 million at the end of 2010; and their proportion in the

t otal rural populat ion decreased from 10.2 per cent in 2000 t o 2.8 per cent in 2010.

6.19 CORRUPTION: Chinese disciplinary and supervisory authorit ies have investigated 119,000corruption cases during the first 11 months in 2010, slightly more than 115,000 of the same period

last year. Invest igations of 108 ,00 0 cases of t hose have been concluded and 113,000 individuals

involved have been punished for violat ing the rules of CPC discipline or administ rat ive discipline, and of

t hem, 4,332 have been shift ed t o the custody of judicial authorit ies for violat ing laws.

6.20 OTHER ISSUES :There are ot her imponderables. One of t he changes t hat has been introduced

in 2002 is the decision to admit capit alists into the Party. Today a number of ent repreneurs and

businessmen have joined the Party. The ideological and polit ical orient ation of t he Part y can come

under new pressures wit h the changing composit ion of t he Part y.

6.21 Anot her problem is t he dropping of the concept of imperialism from t he underst anding of the

Communist Part y of China. In the absence of an anti - imperialist direct ion, there are signs thatnationalism is becoming t he main sent iment among Chinese yout h.

6.22 TO SUM UP:During these three decades of reforms China has made tremendous st rides in t he

development of product ive forces and economic growt h. A consist ent 10 per cent plus growt h rate on

t he average over a period of t hree decades is unprecedent ed in t he ent ire hist ory of capit alism f or any

country. However, t his very process has clearly brought t o t he fore adverse changes in product ion

relat ions and therefore in social relat ions in China t oday.

6.23 How successfully t hese cont radictions are dealt with and how they are resolved will determine

t he fut ure course in China.

6.24 It is also import ant t o assess t he reforms adopted by Vietnam, Cuba and Nort h Korea

subsequent ly. These deal essent ially wit h t he manner in which t hey relate themselves wi t h

internat ional finance capit al and globalizat ion, part icularly when the growt h of t hese socialist countries,

earl ier based on t he decisive support and help f rom t he USSR, is now compelled to be based on their

integrat ion wit h t he int ernat ional market det ermined by globalisation. The need is to meet t he

challenges posed by imperialist globalization t o the very exist ence of socialism in these count ries.

VIETNAM

6.25 At t he 6 t h Nat ional Congress of t he Communist Part y of Vietnam in December 198 6, t he

part ys leadership int roduced changes in most aspect s of life, part icularly in economic policy, under t he

name of Doi Moior Renovat ion.

6.26 The report of t he 6 t h Congress of t he Communist Part y of Vietnam held in 1986 st ates, In

arranging t he economic struct ure, fi rst of all, t he production and investment st ruct ure, we oft en

start ed from t he wish t o advance quickly, did not t ake into account the pract ical condit ions and

abilit ies . . .. It goes on to analyse t he need for exist ence of different forms of propert y in t he period of

transition. [28]Subsequently, in its 7t h Congress, CPV highlighted many emerging problems and t he

need to combat t rends negative to socialism.


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CUBA

6.27 Cuba t oo is in t he midst of a review and reformulat ion of its economic policies. Aft er t he

collapse of the Soviet Union and the socialist bloc, Cuba suddenly found itself bereft of t he steady

st ream of supplies t hat were ensured by t he erst while USSR. US imperialism cont inues t o st rangulate

Cuba by imposing the most inhuman economic sanct ions in the history of the modern world. In t his

background, the part y adopteda resolution on the Guidelines on t he Economic and Social Policy of t hePart y and the Revolut ion(January 20 11) t o update the Cuban economic model andaiming at

guarant eeing t he cont inuit y and irreversibilit y of Socialism and economicdevelopment of t he count ry

and t he improvement of t heliving standards of thepeople.

6.28 Cuba is also t rying t o rework its policy on wages, pensions, close loss-making st at e ent erprises,

eliminate undue free benefit s, excessive subsidies and the rat ion card gradually. It had planned to free

land holdings and give them for cult ivat ion t hrough leases t o small landowners, creat e a market for

small producers and encourage production f or export s. It was also decided t o init iate steps t o improve

labour productivit y, discipline and relocat e excess labour force. It also plans t o int roduce taxation

syst em wherein higher taxes are levied on t hose at t aining higher incomes, provide tax incent ives for

increasing product ion and eliminate the dual currency syst em prevalent in t he count ry [29].

NORTH KOREA

6.29 Nort h Korea had adopted in 2011 a 10- Year State St rat egy Plan for Economic

Development and decided to establish t he State General Bureau for Economic Development for

monitoring its progress. [30]

6.30 Through such reforms, DPRK seeks to advance it s social productive forces, wit hout which it

cannot achieve higher levels of economic and social development, so urgent ly required, to establish t he

superior it y of socialism.

6.31 As we noted in relation t o the reform process in China, t he main issue t hat arises from theseexperiences of reforms in socialist countries is how t hey handle and t ackle the new problems and

contradictions that are arising, and this will determine the future course of socialist consolidation.

VI I

SOM E DEVELOPI N G COUN TRI ES

LATIN A MERICA

7.1 The emergence of popular governments riding t he wave of massive popular upsurge against

imperialism and it s neo-liberal offensive in Lat in America has been popularly described as a pink t ide

t urn to the Left .

7.2 Many countries in Lat in America are ruled by eit her Left - wing or progressive government s aft er

winning democratic elect ions. Left - wing coalit ions, including Communist part ies, that have emerged in

t hese count ries are providing an alternative t o imperialist globalizat ion and neo- liberalism within

capitalism. This experience is in direct cont rast wit h the armed st ruggles that are cont inuing in

countries like Peru and Colombia, demonst rat ing once again t he fut ilit y of Left - adventurism. USA has

set- up seven milit ary bases in Colombia, mainly t arget ing Venezuela, by using a right - wing react ionary

regime, under the pretext of 'prot ect ing democracy' from 'Left - wing' milit ancy.


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7.3 For t he past few years, t hese progressive governments have drast ically reduced t heir economic

dependence on the US and have increased trade amongst the count ries of t he Sout h. This, in a way,

limit ed t he effect s of t he economic crisis on t he cont inent and helped them recover f ast. Venezuela,

Ecuador and Bolivia st and on a firmer ant i- imperialist f oot ing and are nat ionalizing various public asset s

t hat were placed under pr ivate cont rol by the earlier regimes. Many banks were nat ionalized by

Venezuela, and Ecuador has recent ly nationalized it s energy resources like Bolivia had done earlier. Wit h

t heir increased emphasis on social spending and the Stat e playing a major role in the alleviat ion ofsocio-economic inequalit ies, t hese countries are leading t he way for t he ot her ant i- imperialist

government s in t he cont inent .

7.4 Various forums have been forged t o encourage regional t rade bet ween the count ries of the

cont inent like t he MERCOSUR, ALBA, Sao Paulo Forum, etc. The latest is t he new regional economic

grouping t he communit y of Lat in American and Caribbean states (CELAC). All t hese forums are being

used not only t o forge close bonds between t hese countr ies but also put up a unit ed face in resist ing

t he pressures of neo- liberalism. US is tr ying hard to regain it s lost hold in the cont inent , which it once

famously considered to be it s backyard. It is increasing it s milit ary presence in the area. It cont inues t o

interfere in t he int ernal affairs of t hese countries, like the role it played in t he coup in Honduras. It is

also t rying t o use the right wing government s in some other countries. The progressive governments in

t he region and the Left - wing forces in t he cont inent are deeply engaged in t he fight against t he US,exposing it s nefarious designs and mobilizing t he people against t he imperialist offensive.

7.5 The experience of Venezuela during t he last decade shows that t here has been substantial

improvement in social indicat ors since 199 8. Povert y and income inequalit y have declined sharply.

Indicat ors of healt h and access to education have substant ially improved as have access to wat er and

sanit ation. The number of st udent s in higher educat ion more than doubled from t he 1999- 2000 school

year to t he 200 7-2008 school year. [31]

7.6 The Bolivarian alternat ive for Lat in America, popularly known as ALBA, has emerged as a

polit ical project that is direct ly opposed t o the imperialist design of a Free Trade Agreement for t he

Americas (FTAA). Although it was born as an alt ernative proposal to t he FTAA, t he ALBA responds toan old and permanent confront ation between Lat in American and Caribbean peoples and imperialism.

Perhaps a bet t er way of present ing the conflict ing project s is by cont rast ing Monroism and

Bolivarianism. Monroism, usually referred to as America for t he Americans, is in r ealit y America for

t he USA. This is t he imperialist project, a project of loot and pillage. Bolivarianism is a proposal of unity

bet ween Lat in American and Caribbean peoples, following the ideals of Simon Bolivar, who int ended to

create a Confederation of Republics. It was, in sum, t he opposit ion of an imperialist proposal by a

proposal of liberat ion reflecting the cont rast bet ween t he FTAA and t he ALBA. [32]

7.7 The successes of such government s in cont inuing to face and overcome imperialist challenges in

Lat in America, therefore, depends on how t hey cont inue t o exercise their f irmness t o maintain polit ics

in command, in order t o ensure that polit ics det ermines t heir economic policies and, thus, continue to

defeat imperialisms polit ical and economic needs which seek t o direct t heir domestic policies t o suit

imperialisms hegemonic designs. [33]

7.8 These popular forces t oday consti t ut e an import ant element in st rengt hening the worldwide

st ruggle against imperialist globalizat ion. They are also an import ant element in unit ing t he ant i-war,

ant i- imperialist , ant i- milit ary aggression and int ervent ions movement s wit h the movement s against

globalizat ion. It is t his unit y that needs to be built into a powerful global ant i- imperialist movement

which will have the pot ent ial for a fut ure revolut ionary t ransformat ion.


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SOUTH AFRICA

7.9 Following t he historic and heroic victory over apart heid and t he vict ory of t he Nat ional

Democrat ic Revolut ion, as characterized by t he Sout h Afr ican Communist Party (SACP), the ANC

government based on a t ripart it e alliance ANC, SACP, Confederat ion of Sout h African Trade Unions

(COSATU) was seriously engaged in t ransforming t he highly exploit at ive and racially discriminatory

apart heid struct ures and to provide t he predominant ly black population wit h economic empowerment .Init ially, it had t ried this t hrough a policy known as GEAR growt h, employment and redist ribut ion

adopted in 199 6. However, it was later realized t hat t hese policies advanced t he neo- liberal refor m

process which resulted in t he workers share in the GDP which st ood at 51 per cent in 1994, declining

t o 42 per cent in 2008, and t he share of profit s as a percentage of GDP went up from 25 to 33 per

cent in t he same period. South Afr ica is now in t he midst of affecting a serious course correct ion. [34]

7.10 On the basis of it s own domest ic experience and in cont ending wit h current world realit ies, t he

SACP came t o t he conclusion t hat it s success can only come under working class hegemony. It says:

The st ruggle for working class hegemony is not an alt ernat ive to t he mult i- class charact er of our

nat ional democrat ic st ruggle on t he cont rary, it is the precondit ion for it s successful advance,

consolidation and defence.

V I I I

SOCI ALI SM I N I N DI AN CON DI TI ON S

8.1 Our Part y Programmedefines the strategy of the Indian revolution that enjoins upon us to

complet e the democratic stage of t he revolut ion, i.e., peoples democrat ic revolut ion as the precursor

for the socialist transformation in India.

8.2 The updat ed Part y Programmeelaborately deals wit h the format ion of the peoples democratic

front t hat w ill lead t he peoples democrat ic revolut ion under the leadership of t he working class and

also t he programme of t he peoples democrat ic f ront . Crucial in achieving this is the strengthening of

t he subject ive factor which, in t urn, amongst others, depends on t he effective use of parliament aryand extra parliament ary means of st ruggle and t he building of t he worker- peasant alliance. The

necessary t act ics are worked out from t ime to t ime which dovet ail our st rategic object ive of changing

t he correlat ion of forces amongst the Indian people t owards st rengt hening the class st ruggles for t he

peoples democrat ic r evolut ion.

8.3 It is only aft er t he est ablishment of Peoples Democracy and complet ing t he ant i- imperialist ,

ant i- feudal, anti- monopoly capit al t asks, can t he Indian people advance towards socialism. What does

socialism in Indian condit ions mean? While no blueprint can be det ailed till t he Peoples Democratic

Revolut ion is successfully complet ed, we can only out line and develop furt her our underst anding

cont ained in our earlier ideological document s:

It means providing all people food securit y, full employment , universal access to education, healt h and

housing. It means t he economic and polit ical empowerment of t he people by vast ly improving the living

condit ions of t he workers, peasants and the hithert o marginalized sect ions.

It means, first and foremost, that peoples power would be supreme. That democracy, democratic

right s and civil libert ies would be inseparable elements of the socialist juridical, polit ical and social

order. Under bourgeois democracy, illusionary formal right s may exist but people are denied the

capacit ies to exercise of t hese right s. Under socialism, democracy will be based on the economic

empowerment of all people, t he fundamental and essent ial requirement for the cont inuous deepening


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and development of t he quality of human life, on whose foundations socialist democracy will flourish.

Under socialism, the right t o dissent , freedom of expression and plurality of opinion will f lourish wit h

t he aim of st rengt hening socialism under prolet arian st at ehood.

It means t he ending of cast e oppression by abolishing the caste system. It means t he equalit y of all

linguist ic groups and equal development of all languages. It means t he true equalit y of all minorit ies and

marginalized sect ions and ending gender oppression.

It means that t he socialist economic construct ion will be based on t he socialised means of

production and cent ral planning. As long as commodit y product ion exist s, the market is bound t o exist .

The market forces, however, shall be subsumed under t he guidance of cent ral planning. While various

forms of propert y can and will coexist, the decisive form will be that of t he social ownership of t he

means of product ion. This does not necessarily express itself only as the St ate- owned public sector.

While this plays an import ant role, ot her forms like collect ive, cooperat ive and St ate cont rol of

economic policies that regulat e the economic lif eline will necessarily coexist .

8.4 In our effor t s to st rengthen t he revolut ionary struggles in India and drawing correct lessons

from the experiences of other countries who are working out their methods to meet the challenges of

t he present - day world realit ies, we, in India, need to meet the challenges mount ed by t he current phaseof globalisation t aking place in t he world capit alist system, the consequent widescale socio-economic-

cultural changes in general, and, in part icular, it s serious implications t hrough domest ic economic

reforms for t he Indian economy and the Indian people. It is, therefore, incumbent upon us to work out

t he correct t act ical line, from t ime to t ime in our Part y Congresses, t o dovet ail our st rategic object ive

and advance t he struggle of t he Indian people for liberat ion and emancipation.

I X

CU RREN T AN TI -M ARXI ST REACTI ONARY I DEOLOGI CAL CH ALLEN GES

9.1 Following t his shift in balance of forces in imperialisms favour, we ant icipat ed an aggressive all

round att ack not only ideologically but in all spheres against Marxism and Communism.

9.2 During t hese t wo decades, such t rends have fur t her intensified. These essent ially at t empt t o

reason t hat with t he collapse of t he USSR, t here is a need to t ranscend Marxism. Hence, t he theories

of revisit ing, reassessing or reconstruct ing Marxism have surfaced and are circulat ing in fashionable

int ellect ual circles, inf luencing and confusing sect ions of t he people.

9.3 POST- MODERNISM: Imperialist - driven globalizat ion fuelled by global finance capit al has

spawned a whole new range of ant i- Marxist ideologies and theories which are marked by t he negation

of all progressive, universalist ideologies. Theories of class convergence, disappearance of class st ruggle

and t he negat ion of t he revolut ionary role of t he working class have been part of t he bourgeois

ideological armoury. To these is now added t he current ant i- Marxist t heory of post- modernism.

9.4 Post - modernism is a bourgeois philosophical out look which arose out of t he success of the lat e

20 t h century capitalism and the reverses of socialism. It quest ions all t he values of t he Enlight enment

and rejects any philosophy or polit ics which is universal and dismisses them as t ot alizing theories,

Marxism included. Post - modernism does not recognise capit alism or socialism as a st ruct ure or

syst em. Thus it is a philosophy suit ed for global finance capit al as it negates class and class st ruggle.

9.5 SOCIAL DEMOCRACY: Social Democracy previously was a reformist ideology which sprang up

from wit hin the working class movement. It advocated accommodat ion wit h capitalism and reforms


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wit hin t he capitalist system. Social Democracy has got t ransformed in the era of globalised finance

capital. It has got fur ther co-opted into the bourgeois system. Reformism gave way to just ificat ion of

t he neo- liberal policies by the social democrats. The t hird way propounded was not hing but a cover for

t his. As Marxists, we should counter such theories of social democracy and expose their role as

adjuncts to the rule of capit al.

9.6 However, Marxism is unique in the sense t hat it can be t ranscended only when its agenda isrealized; the agenda of realizing a classless Communist social order. Specif ically under capit alism, it s

underst anding of capitalism is alone thorough enough for i t to comprehend the hist orical possibilit ies

t hat lie beyond it . Hence Marxism can never be, under capit alism, rendered superfluous unt il capitalism

is it self superseded. Post capit alism, Marxist philosophy and world view will cont inue to be t he basis

and the scient ific guide, for socialist construct ion and the t ransit ion to Communism.

9.7 As not ed in all our ideological documents earlier, Marxism is not a dogma but a creat ive

science. It is based on, amongst ot hers, a concret e analysis of concr et e condit ions. Marxism is an

approach t o t he analysis of hist ory in general, and of capit alism in part icular. It is on t his basis, building

on the foundat ion provided by Marx, that we cont inuously enrich our theory for underst anding t he

present conjuncture and the possibilit ies it holds for t he future. Far from being a closed t heoret ical

system, Marxism represent s a process of cont inuous theoret ical enrichment .

9.8 Current ant i- Marxist ideologies and ot hers that may arise in t he fut ure need t o be squarely

combat ed in t heory and their manifest ations in disrupting class

draft resolution on some ideological issues- 20th congress of cpim

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