Awareness of capitalists’ use of colonialism invites rethinking of solidarity commitment / By W. T. Whitney Jr.

_{^{Mural by Dan Manrique Arias | Photo by Terence Faircloth, CC BY-SA 4.0}}

_{South Paris, Maine}

Studying capitalism, Karl Marx examined the Industrial Revolution in Europe. He explored conflict between worker and employer. In their book Capital and Imperialism (Monthly Review Press, 2021), authors Utsa Patnaik and Prabhat Patnaik emphasize that Marx’s followers believed that, with the onset of capitalism, “accumulation [has] occurred only on the basis of the generation of surplus value.” (Surplus value signifies that part of a product’s commercial yield which labor generates and employers keep.)

Many U.S. political activists oppose the overseas wars and interventions their government uses to maintain worldwide political and economic domination. More than a few know about stealing in the peripheral regions of the world at the hands of capitalism. They are aware of U.S. imperialism.

The stolen goods include: land, bodies, raw materials, food crops, forests, water, extractable underground resources, exorbitant interest on debt, and funding owed the world’s poor for subsistence. Non-payment for social reproduction is a kind of stealing.

The more these activists learn that capitalism from its start did call for oppression in the undeveloped regions of the world, the more likely might be their inclination to build an anti-capitalist international solidarity movement. The book authored by the Patnaiks contributes to this end by documenting that colonialism and, implicitly, imperialism have been essential to the development of capitalism.

In describing India’s colonial experience, their book – by no means reviewed here in its entirety – provides an explanation taken from Marx as to why capitalism needed colonialism. It details the workings of capitalist-inspired colonialism in India.

The Patnaiks declare that, “not only has capitalism always been historically ensconced within a pre-capitalist setting from which it emerged, with which it interacted, and which it modified for its own purposes, but additionally that its very existence and expansion is conditioned upon such interaction.” Capitalists sought “appropriation of surplus by the metropolis, under colonialism.” (“Metropolis” is defined as “the city or state of origin of a colony.”)

They explain that “Marx’s basic concept of capitalism [as expressed] in Capital is of an isolated capitalist sector … consisting only of workers and capitalists,” also that an isolated sector implies a capitalism “stuck forever in a stationary state or a state of simple reproduction … [and] with zero growth.” They insist that “a closed self-contained capitalism in the metropolis is a logical impossibility.”

There is “nothing within the system to pull it out of that state.” The economy “will necessarily get to that state in the absence of exogenous stimuli.”

The Patnaiks envision three kinds of exogenous stimuli: “pre-capitalist markets, state expenditure, and innovations.” The first of these represents the colonialism that would be essential to capitalists as they built the economies of European industrial centers.

Inflation a concern

Outlining how British capitalism dealt with colonial India, the authors highlight money as a device for holding and transferring wealth. The object has been to preserve its value. The system had these features:

· Officials in London used the surplus derived from Indian exports of primary commodities to finance the export of capital to other capitalist countries.

· British officials taxed the land of small producers in India, using the revenue to pay the colony’s administrative expenses and purchase commodities for export to Britain; some were re-exported to other countries.

· Britain exported manufactured goods. The flood of them arriving in India led to “deindustrialization of the colonial economy.” Displaced artisan manufacturers became “petty producers” of commodities.

· British officials dealing with “increasing supply prices” for commodities exported from the colonies, faced “metropolitan money-wage or profit margin increases.” Seeking to “stabilize the value of money,” they imposed “income deflation … [on Indian] suppliers of wage goods and inputs to the capitalist sector.”

· The claims of heavily-taxed agricultural producers in India were “compressible” especially because they were located “in the midst of vast labor reserves.”

Colonialism provided British capitalists the option of cutting pay or jobs in India so as to carry out the currency exchanges the system required and to “accommodate increases in money wages” in Britain, both “without jeopardizing the value of money.”

Global economy

The book outlines post-colonial developments. Colonial arrangements persisted throughout the 19^th century and collapsed after World War I, due in part, say the authors, to a worldwide agricultural crisis that peaked in 1926. The circumstances gave rise to the Great Depression. Spending for World War II led to recovery, mostly in the United States.

These were “boom years” for capitalism. The United States, confronted with increasing military expenses, turned to deficit financing. Western European countries took up social democracy and the welfare state. Some former colonies, now independent nations, sponsored agricultural and industrial initiatives aimed at relieving economic inequalities.

At that point, the centers could no longer impose income deflation on working people in the periphery to ward off loss of monetary value. Bank holdings increased and lending pressures mounted. In 1973 “the Bretton Woods system collapsed because of the emergence of inflation.” “The capitalist world of the stable medium of holding wealth …[through] the gold-dollar link” took a hit.

Next came worldwide take-over by global finance capital and neoliberalism. The Patnaiks explain that, with “barriers to capital flows” down, “state intervention in demand management becomes impossible.” “[A] regime of income deflation on the working people of the periphery” returned in order to “control inflation and stabilize the value of money.”

Concluding

This story is of continuities. One is capitalism at its start taking up with colonialism. Another is capitalism using colonialism to preserve the value of money in cross-border commercial and financial dealings. One more is the oppression and beggaring of the world’s working people to prevent inflation.

Karl Marx may have found data and other information on colonialism scarce as he studied capitalism. Additionally, his life of research and political activism may have been so full as to distract him from investigation of the colonial connection. Even so he championed international worker solidarity.

He and Engels supported India’s independence struggle. Marx defended “heroic Poland” beset by Czarist Russia. He writes to Engels that, “In my view, the most momentous thing happening in the world today is, on the one hand, the movement among the slaves in America, started by the death of [John] Brown and on the other the movement of the serfs in Russia.”

Addressing the International Working Men’s Association – the First International – in 1864, Marx reported that events “have taught the working classes the duty to master themselves the mysteries of international politics; to watch the diplomatic acts of their respective governments.”

The wreckage of people’s lives caused by capitalism now extends widely. The venue of capitalism is global, by its nature. Political support for workers and their political formations in the Global South hits at the essence of capitalist power. The promise of basic change lies in that direction, and that’s so too with alternatives to the capitalist system.

Those struggles for social justice and equality that are confined to the world’s industrial centers do target aspects of capitalism, but without far-reaching expectations. The full effort consists of: pushing for reforms that ease burdens placed upon working people, building mass opposition, and – crucially – advancing the international solidarity movement.

_{W.T. Whitney Jr. is a political journalist whose focus is on Latin America, health care, and anti-racism. A Cuba solidarity activist, he formerly worked as a pediatrician, lives in rural Maine. W.T. Whitney Jr. es un periodista político cuyo enfoque está en América Latina, la atención médica y el antirracismo. Activista solidario con Cuba, anteriormente trabajó como pediatra, vive en la zona rural de Maine.}

Crisis in Cuba Requires End of US Blockade Now / by W. T. Whitney Jr.

_{^{Cuban Flag | Museum of the Revolution, Havana, Cuba, 2012. (Photo: Terry Feuerborn / Flickr)}}

Friends of socialist Cuba like good news about that country. Now bad news has its use. Grief and hardship currently are such that, clearly, the U.S. economic blockade of Cuba must end at once. The harsh details, appearing below, testify to potential destabilization in Cuba, danger to Cuba’s socialist project, and the nefarious role of the blockade. A major mobilization against the blockade is due. The need for action is obvious.

The blockade, a 60-year-old relic of history, places few heavy demands on the U.S. public. No governmental funding is required. The Treasury Department issues fines and presidents make ritualistic declarations. People dodge travel restrictions. It’s a slow-motion affair. Distracted pro-Cuba activists may lose track of harassment details. Here they get a refresher course, for motivation toward action. It emphasizes blockade effects on people’s lives.

In the Beginning

Cuba’s vulnerability is the result mainly of U.S. policies directed at “denying money and supplies to Cuba … to bring about hunger, desperation, and overthrow of government.” The words are those of a State Department memorandum of April 6, 1960.

The flow of money to Cuba – international loans and export income –has long been feeble. International banks, financial institutions, and corporations handling dollars on Cuba’s behalf risk big U.S. Treasury Department fines. U.S. legislation blocks Cuba from importing the products of multi-national companies with branches in the United States – even food and medical supplies. For almost 30 years third-country ships docking in Cuba have been prohibited from entering a U.S. port for the following six months. Since 2019 the U.S. government has sanctioned Venezuelan ships carrying oil to Cuba.

The U.S. government harasses Cuba’s tourism industry, the source of most of Cuba’s foreign currency. Restrictions, variably regulated, operate against U.S citizens’ travel to the island. Why? They would spend money there. To discourage potential investors, U.S. legislation enables the heirs of properties nationalized in Cuba to take legal action in U.S. courts against investors who make use of such properties.

Cuba’s commerce with the United States has been nil for 60 years, except for heavily regulated Cuban agricultural exports. The northern neighbor used to be and still could be Cuba’s most convenient trading partner.

People are hurting

The U.S. blockade constitutes the main impediment to Cuba’s industrial production and overall economic development. Soviet Bloc nations formerly provided relief. Since then, strictures placed on imports have caused shortages of raw materials, replacement parts, consumer goods, new tools and machines, and reagents for drug and vaccine manufacture.

The blockade recently has complicated lives already beleaguered by the Covid-19 pandemic and an 11 percent economic recession resulting from the pandemic.

An Associated Press report of June 22 highlights a lack of new housing and impediments to repairing houses. In 2019, 44,000 homes were built, in 2000, 32,000 homes, and in 2021,18,000. Building materials are in short supply. Hurricanes and the pandemic aggravated the situation.

Elderly Cubans experienced isolation and lack of supplies during the pandemic. For two years they’ve experienced weakened cultural and support services and reduced housing options. Fuel shortages in late 2021 led to fewer bus-runs in Havana. Wait-times were even longer. Pharmacies in 2020 had available only 35 percent of their normal stock.

In recent times, infant death rates in Cuba matched the favorable rates of well-resourced countries, and were lower than U.S. rates. Astoundingly, Cuba’s infant mortality rate in 2021 was 7.6 infant deaths per 1000 births, up from 4.9 in 2000 and 5.0 in 2019. Cuba’s 2021 rate of mothers dying from pregnancy and childbirth difficulties was 176.6 – out of 100,000 mothers giving birth – up from 40.0 mothers in 2000 and 37.4 in 2019.

The increases stem from Covid-19 infection mortality added to deaths in non-Covid times. Experts say the deaths of children and mothers can reflect social factors – mothers’ low educational levels, reduced access to healthcare and other services, and poor nutrition. Therefore, the U.S. blockade, which does affect social well-being, may have taken a toll in this area too.

Cuba’s food supply is unstable what with reduced food production, inefficient distribution, marketing based on income levels, and quality variations. At an annual cost of $2 billion, Cuba’s government still must import 60-70 percent of the food consumed in Cuba.

Production levels remain low despite reforms introduced after 2008, among them: land distribution, allowances for farmers’ permanent use of land, marketing reforms, governmental assistance to individual farmers and agricultural cooperatives, new distribution systems, local decision-making on assistance and policies, and ecologically sustainable methods.

The U.S. economic blockade is not responsible for soil deficiencies, officials’ inaction, drought conditions, overgrowth of invasive plants, and the appeal of urban life for rural youth. Blockade effects do show up in farmers’ reduced access to credit and lack of funds for fertilizer, seeds, breeding stock, spare parts, new equipment, and fuel.

Inflation holds sway in Cuba now. Prices, rising for two years, are up now by 70 percent and more. Access to essential goods is impaired. Frustration at high prices and shortages helped trigger island-wide protests on July 11, 2021 and has contributed to record emigration.

The U.S. blockade set the stage for inflation. After losing its commercial partnership with the Soviet Bloc, which disappeared in 1991, Cuba was in trouble. The blockade blocked access to international loans and interfered with income derived from exports, the latter effect stemming from export restrictions. Consequently, funds have been short for importing essential products and for developing the economy.

Cuba desperately needed foreign currency and therefore brought tourists to the island to spend money that would end up with the government. From 1993 on, their money was captured via a new currency called the Cuban convertible peso (CUC). Tourists surrendered their own currencies in exchange for the CUCs.

Cubans, not all of them, acquired CUCs and were able to buy goods and dollars unavailable to Cubans without CUCs. Inequalities emerged. Responding, the government gradually withdrew CUCs from circulation, beginning in January 2021. Anticipating hardships, it raised salaries and pensions payable in Cuba’s “national peso.”

New money in circulation stimulates inflation, especially when goods for sale are in short supply, as in Cuba. The national currency lost value. Tourists, excluded during the pandemic, returned in late 2021. Their money, circulating, added to inflationary pressures. CUCs with a prominent role in Cuba’s informal economy, and still circulating, did likewise. The role of CUCs suggests the blockade’s indirect contribution to inflation.

Persevering

Those defenders of Cuba worried about diminished Cuban-government commitment to bettering people’s lives may need reassurance. Of note:

· Cuban president Miguel Díaz-Canel Bermúdez on June 21 addressed a meeting which elevated the role of social work. Discussion centered on mothers living in cities in “situations of vulnerability.”

· Support programs are in place for elderly Cubans experiencing isolation, for example, the “Accompany Me (Acompáñame) project of telephone assistance and the National Program for Comprehensive Attention to Elders.

· As of 2021, 423 so-called Projects of Local Development promoted food production, small workplaces, and tourism along with socio-cultural, environmental, and research programs.

· The government promotes its program known as “micro, small, and medium [size] businesses.” These mostly privately owned enterprises, numbering 1,188 last year, produce food products, building materials, furniture, textile products, footwear, cleaning supplies, computer accessories, recycling serves, and more.

· The government in April 2021 approved 43 measures directed at increased agricultural production and food availability. Results are far from ideal, an observer notes.

The blockade, a 60-year-old relic of history, places few heavy demands on the U.S. public.

· Prime Minister Manuel Marrero Cruz, on June 24 visited a district in Cardenas to assess progress toward “improvements of roads, water supply, housing construction and social work.”

What to do

Resistance to the U.S. blockade within the United States has been constant for decades, but to no avail. Thanks to the Helms-Burton Law of 1996, the hurdle now is forcing the Congress to act. For that to happen, masses of people must stand up together and weigh in.

But that won’t happen, it seems, as long as activists continue to view the blockade as an isolated issue. What’s needed is collective action on many issues toward changing the direction of the U.S. government itself. The common ground would be justice and decent lives for all people everywhere, Cubans among them.

Also required would be new understanding that U.S. assault on Cuba happens as part of the larger U.S. project of capitalism worldwide and imperialist domination. The big mobilization to end the blockade would be part of a larger mission to take apart that U.S. project. Oppressed and plundered nations would be rescued, Cuba among them.

One adjustment: U.S. progressives ought to reject that old dictum that “Politics stops at the water’s edge.” It sends the message that solidarity with and struggle for oppressed peoples overseas doesn’t matter. That’s not so.

By no means will these suggestions bear fruit in time to end the blockade soon. Hope and struggle will remain. U.S. public opinion favors ending the blockade. People in the United States now fighting the blockade are experienced and want to enlarge the movement. Maybe chaos attending capitalism’s failures, new wars, and international divisions will distract the U.S. government from bothering with Cuba. Maybe international solidarity with Cuba will continue growing. Revolutionary Cuba, with unity and effective leadership, is known for overcoming challenges.

_{W. T. Whitney Jr. is a political journalist whose focus is on Latin America, health care, and anti-racism. A Cuba solidarity activist, he formerly worked as a pediatrician, lives in rural Maine. W.T. Whitney Jr. es un periodista político cuyo enfoque está en América Latina, la atención médica y el antirracismo. Activista solidario con Cuba, anteriormente trabajó como pediatra, vive en la zona rural de Maine.}