Beruflich Dokumente
Kultur Dokumente
0. Introduction
One of the major stakes of our times is to struggle for another globalization.
This is the orientation of our Marxist school, linked to struggles and social
movements, at national and also European level.
We are facing two things:
-
The demand for genuine radical alternative and proposals, with different
struggles but mainly protestation struggles
The demand for alternative and radical proposals can be mislead, in Europe,
towards
- either nationalism against all forms of internationalization, with the
illusion of a possible conciliation, class collaboration!, between capitalists and
workers at a national level
- either conservative reforms (low or high) for market and to sustain profits,
which lead to a failure and would fuel social despair.
The both positions have in common to not affront capital and its financial logic.
The stake hence is to struggle for another globalization, for the whole
Humanity, towards a socialist and communist direction.
1. TAFTA and TTIP international agreements Treaties projects
One challenge about another globalization is obviously the very recent wave of
new international global agreements, as TAFTA and TTIP (transatlantic
agreement on free trade area and transpacific trade and investment
partnership). It manifests the seeking for the dominant economy, USA, of
another stage of the globalization after the financial crisis, but in order to
persist, to enlarge and securing the same logic. Of course we have to refuse the
Investor-State arbitration principle putting MNEs at the same level than
States. We have also to denounce the possible alignment of norms on the
weakest norms. But we have also to promote alternative and not simply
limiting the same logic. We are not anti-globalization, we want another one.
As an alternative the mere principle of cooperation is good but far to be
enough. We need more specific principles for the cooperation, as cooperation
for developing common goods and cooperation for improving jobs and
mutual value added. But also we have to see as much capital criteria are in the
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
heart of the agreements projects. The investments are the core of the
agreements (and it is in the title). More specifically, the core of the treaty is
investments and the income of the investor (i.e. profit1). The criterion of
judgment of the TAFTA treaty project is whether if the returns of investments
are secured for the (foreign) investors. It is said in a pseudo-neutral way. Said
with others words it means weather if the profits are secured for the owner of
capital. But the profits (return on investment for the owner) are not the whole
return of an investment, there is the whole value added, and also non valuable
elements. So a crucial point for an alternative could be elaborated from the
following principle: whether if the VA, the VA disposable for people and
territories, jobs and Common goods are improved or threatened.
The last important point of those Treaties is the transfers in value of all
resources. That refers to the need of a common world currency, and stable,
hence to dollar.
We can refer to the fundamental systemic triangle of the system, to understand
both its resistance and the way to transform it. Indeed we must act on the
three points of the triangle: powers, but also social aims and financial needs,
through a progressive change of the dominant criteria of the capitalist system.
Graphic1
Systemic Triangle
Powers
Efficiency Criteria
Social Goals
(Profitability vs Efficiency)
Concerning the angle financial means of the triangle, I will describe here a key
point for another globalization: the dollar and alternative to it. It is at the core
1
Investment means every kind of asset which is owned () by investors of one Party in the
territory of the other Party that has the characteristics of () the expectation of gain or
profit (article 1- 4-p, TAFTA draft of the 02/07/2013.
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
Huge amount of borrowings and loans in dollars, from and towards USA.
All this finance US economy as a levy on the rest of the world, we could say a
tax, despite of US deficits and disequilibria. And it also sustains the dollar
exchange rates through the demand for it.
It finances informational spending and technological advance of the US
economy, particularly R&D expenditures, high skilled workers training and
wages, and technological investments. It is spent partly inside the US economy
either by MNCs spending, either by public entities (including military
expenditures).
It finances also outside, as counterpart, the world expansion of US-MNCs all
around the world, through net outflows of FDI from US. Hence it is spent partly
outside. And bout that point one can underline one thing: from foreign comes
dispersed capital (e.g. portfolio investment) so it has quasi no control power,
but it finances foreign direct investment abroad (exits from the USA) that
controls the other companies. Hence a lot of foreign capital exit to USA only to
finance and take profit, but is transformed to help US-multinational companies
(MNCs) to control the rest of the world companies It is a transformation from
finance by the rest of the world onto control on the rest of the world, through
giving some profit (essentially given by the State as income on treasury bonds).
So we have, as shown on the graph:
a) Net inflow of Portfolio investments and Deposits and Borrowings and Loans
(inflow of K, symbol = K+)
b) One part is internally used for developing informational and technological
US advance (including public expenditures, through the bying of US
treasury bonds, financing State budget deficit). (Internal uses of K+).
c) The other part is used to finance international domination of the world
through (i) the lasting of US trade-in-goods-deficit and (ii) the financing of
US MNCs expansion with a net outflow of FDI from the US. That is to say it
is used to purchase assets or real capital in foreign countries (foreign direct
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
Balance
Of course, there are exports and imports of goods; but at the end a deficit of US external
trade in goods means that there are net imports.
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
and published in the newspaper Patriot, New Delhi, under the title End to dollars rule
urged (August 14, 1983).
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
4. Proposals
Now, I present our proposals for transforming the international monetary
system. They are linked to social and political struggles and proposed in
France by the French Communist Party as well as by other left side oriented
forces in France (the Left Front). They are also shared by the European left
party (ELP), which is a federation of different European national parties,
especially communists and their allies from Greece, Spain, Italy and
Germany. They are also elements of an alternative to the threatening of the
Transatlantic free trade area treaty (TAFTA treaty) and it could oppose to
the risk of the blowing out of a new and bigger over-accumulation at world
level.
It needs a deep reform of the IMF: its democratization, changing of its aim and
its tools.
We need IMF democratization:
1. Voting powers must be changed and linked not only to the monetary
wealth of a country but also to the population weight of the country;
2. The USA de facto veto right must be suppressed. Now they have the power
to block any decision they want because of their voting power is 16,75%,
since the majority vote rule is fixed at 85%. So not any vote can reach the
majority without USA votes. They can block any decision.
We need changing the aims and tools of IMF.
SDR must be developed as alternative to dollar.
SDR is a currency based on a basket of different currencies, not only dollar,
and issued at an international level by an agreement between countries
within IMF as a monetary creation beyond the international reserves. So
1. SDR must be based on a larger panel of currencies
2. SDR must be issued more abundantly
3. SDR must be allocated with other rules: depending on the needs of the
countries and population size.
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
4. SDR must be used in another way, with other conditions. It is the core
of a genuine socialist, even communist alternative. Criteria are the core
against the present criteria which are based on profit rate. It is not a
technical thing, but a highly political one, because as we all know the
devil lays in details. The conditions new should be, that SDRs must be
given are:
a. To stimulate public services expansion, including social
protection, towards the development of world common goods
b. To stimulate jobs and production through another bank credit,
a credit in favor of investments if investment develops jobs
(more and better jobs).
It joins people struggles denunciating present conditionalities of the loans
of IMF, so-called aids and adjustment plans, or in Europe the struggles
against the present conditionalities puts on States by the so-called troika
(ECB, IMF, European Commission) to give (or even to lend) them money.
There are several analysis pointing the need to develop SDR as a common
currency, yet they do not see, or point out, the need for a new kind of
world currency (as representative of so conservative reforms, see for
example Aglietta, 2014).
This could be done through two means:
a - For public services and common development
The international issued money (new SDR) would be given to States at very low rate
(near to zero), to finance social protection (health care, unemployment allocation,
pension system, etc.); to finance public services; to develop world common goods
(from alimentation to education, technology, culture, ecology, etc.).
b - For employment and another production
A profoundly transformed IMF would re-finance central banks of the countries at
low interest rate, with the condition that they stimulate a selective credit directed
to efficient investment, that is to say investment which develops employment in
the firms: the more jobs and social conditions are increased and improved, the
lower the interest rate would be, until zero.
These are the aim, the global and general scheme for alternative.
Elements for the road
There are now also elements who can build a road, step by step, towards this
direction.
- In Europe, there is the proposal of a new Euro, by the European left party and
different national communist party or left wing oriented, amongst them Syriza in
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
Greece, PCF in France, Izquierda Unida in Spain and Die Linke in Germany, pointing
out the ECB responsibility and power.
- In Latin-America there is the BancoSur (South Bank) and the Sucre project.
- And there is the new financial institution created by emerging countries in last
July, in the 15-16 July summit at Fortaleza (Brazil).
Let me enter in detail for this last one initiative with possible very important
implications.
The National development bank of the BRICS
Five big emerging countries Brazil, Russia, India, South Africa and China decided
to create a new financial institution, named the Development Bank, with two
component, one being really a bank and the other being a common fund for reserve
currency. Indeed we have two distinct institutions in the same body: the bank and
the fund.
It is an extremely important initiative. It challenges Bretton-Woods institutions, as
IMF and World Bank, now dominated by USA. And it is also challenging the US
dollar as observers noticed immediatly4.
The Bank has an allocation of 100 billion $. The bank will not put constraints on
economic policy in counterpart of its loans, contrary to so-called structural
reforms claimed by IMF and World Bank in counterpart of their loans. It could
interest a broad set of countries, including for example Argentina facing to very
high pressure on its debt.
The aim would be to finance infrastructures in the countries.
In Parallel with its high alternative countents, there is some ambivalence
with two possible lines of development.
-On the one hand, it could push investment in infrastructures, reinforcing
interdependencies between emerging and developing countries, and cooperation
between their productive even capitalist firms. Hence it would challenge not
only western industrial domination but also its domination on financial and
monetary system.
So a major transformation of the globalization.
- But also, on the other hand, a more ambitious line of radical transformation could
be developed, in relation with social and political and ideological struggles in
emerging countries, in developing countries, and in European countries. It is that
the new bank can aim new financing for promoting and securing employment,
44
See for example Totten (2014) or OXFAM (2014), or UNCTAD (2014) or Zlotowski (quoted
in P. Boccara 2014), although if others have minimize the importance of the initiative (see
for example in the Washington post Desai and Vreeland (2014)
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
10
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
together with developing public services and social protection (not only material
infrastructures).5
As said before, as an aim for a new and profoundly transformed IMF, the Bank
could aim to finance in priority:
1) Investment promoting more jobs, jobs with better conditions, securing
employment, by putting very low interest rates on loans directed to those
investments, until zero rate. The more they develop employment and
better social conditions, the lower would be the cost of credit.
2) In parallel, the bank could finance at low rate not only material and capital
infrastructure, which are of course necessary, but also and more and more
public services development in the line I stated before.
Generally speaking, the stakes are that all financing means and all monetary
creation should be progressively based on new, really new, efficiency criteria,
opposed to profit rate and capital accumulation.
The Over-accumulation crisis new explosion threatening now even BRICS
We can hence begin to give an answer to two challenges: (1) the coming of a
new and possible crisis of over-accumulation, which seems to be more worldwide and touch now also BRICS countries from outside and from inside of them,
(2) the unemployment and the urgent needs for public services all around the
world.
Conclusion
We can go, hence, in the direction of genuine common and public goods of
Humanity, from money to vital needs. I mean from food to ecology, from health
to culture and scientific knowledge, etc.
Yet there are a lot of ambivalences, twofold lines and opposed pressures,
from MNCs, from financial capital. There are contradictory visions. Even there
are possible rivalries, some countries or sectors aiming new dominations. But
there are also growing social and democratic genuine democratic needs,
and also needs of cooperation. That is to say needs of another globalization
against national selfishness, and against capital class egoism. Those needs can
unify social forces all around the world.
555
We can remark that other voices, for example OXFAM, have experssed also the need to a
braoder approach, pointe dit, as me, as challenge a real succeed of the Bank. But we ropose
here a more realistic aim (acting on the conditions of activity, not only the results as
poverty) and more specific means and operation modes (contrary again to simply adding
poverty , as OXFAM. It is obviously one of the main stakes. But if we stay at such a
general level and formulation World Bank and IMF also say that
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
11
The 4th World Socialism Forum Beijing Chinese Academy of Social Sciences - 2013 October 30-31
Rfrences
AGLIETTA Michel, COUDERT Virginie (2014), Le dollar et le systme montaire
international, La dcouverte, collection Repres, 125 p.
BOCCARA Paul (2014), Les perspectives ambivalentes dune Banque et dun Fonds
des BRICS pour une autre construction de mondialisation , Economie et
Politique, n 720-721, p. 10-12.
BOCCARA Paul (2011), We must incriminate the basic rules of capitalism, p. 61-68,
in All the Same - All Being New. Basic rules of capitalism in a world of
change, Peter Herrmann editor, Europischer Hochschulverlag, Bremen,
198 p.
DESAI Raj, VREELAND Raymond (2014), What the new bank of BRICS is all about,
Washington Post, 17 July.
GOLDBERG Linda (2010), Is the International Role of the Dollar Changing ? ,
Current Issues, Federal Reserve Bank of New York, vol. 6, n 1, January, 7 p.
JOHN Lysa (2014), The BRICS development Bank Why the worlds newest global
bank must adopt a pro-poor agenda, OXFAM policy brief, 11 July, 28 p.
TOTTEN Jordan (2014), BRICS New development bank Threatens hegemony of US
Dollar, Forbes Opinion, 22 December, 5 p.
UNCTAD (2014), A BRICS development bank: A dream coming true?, Forbes
Opinion, S. GRIFFITH-JONES, UNCTAD Discussion Papers, March, n 215, 21 p.
The Current situation and the Development Trend of World Socialism and Leftist Thoughts
12