Date: Tue, 28 Oct 1997 03:28:57 -0500 From: "Siddharth G. Chatterjee" <siddhart-AT-mailbox.syr.edu> Subject: M-I: All-Russian Ruin From: http://easyweb.easynet.co.uk/~socappeal/alanrussia.html > All-Russian Ruin > > An eyewitness report by Alan Woods > > I stepped outside the door of the metro station and saw him. A corpse, > half-covered with a white plastic sheet, stretched out on the muddy > pavement. It was clearly a man, probably in his mid-forties, although, > as his face was covered, it was impossible to say. Who was he? An > alcoholic whose liver had just given up? One of the many homeless, > dead from malnutrition and exposure? Did anyone know? Did anyone care? > A couple of bored-looking cops stood around the body. Three paces > away, the myriad of little stalls that have sprung up alongside all > such stations carried on with its usual bustling activities. At every > step one comes face to face with mind-numbing poverty. Beggars line > the streets and metro stations, many old people, particularly women, > whose pensions and life-savings have been rendered worthless in the > process of "market reform". > > Particularly tragic are the crippled people who must get along as best > they can. A common sight is that of a man with no legs propelling > himself on his knuckles on a couple of planks with skates underneath. > In the entry of one of the metro stations near Red Square a > middle-aged man is comforting his wife. She is wrapped in a sleeping > bag, a huddled faceless heap. The sheer mass of human misery is > overpowering. One vision sticks in my mind. It is ten past midnight > and raining hard. In the street, a woman in her late thirties, a > plastic bag tied on her head and a basket under her arm, tries > desperately to sell bread to passers-by: > > "Do you need any bread?" "No, thank you." > > She persists: "I have cakes and chocolate too." "I don't need any." > > "But I have children to feed and there's no father.....For the love of > god!" > > The general collapse is shown by falling health standards and a rising > death rate. Diseases like tuberculosis (associated with poverty) are > rapidly increasing. As the following report from the Moscow Times > (17/10/97) makes clear: > > "About 2.2 million people are ill with tuberculosis in Russia and the > disease is steadily spreading, a health official said Thursday. Last > year, 24,700 people died of tuberculosis and 98,000 people were > recorded as having contracted the disease, Interfax reported, citing > the first deputy health minister, Gennady Inishchenko. > > Overall, the number of tuberculosis cases has risen nearly 4 percent > during the past year, while the number of children suffering from the > disease has gone up about 11 percent. > > This is the real face of market reform in Russia. > > Moscow's artificial "boom" > > A Western tourist coming to Moscow for a few days might get the > impression of a booming economy. But this is completely untypical of > Russia, since over 80% of foreign investment comes here, giving a > superficial sense of prosperity. All the big banks and finance houses > are based in Moscow. There is a large service sector, as well as all > the government offices as well as the stock exchange, tourism, hotels > etc. On the basis of this, there has been a construction boom. On > every street corner there seems to be a building site. A host of small > businesses have mushroomed: shops, restaurants, bars, and the like. A > large section of the population depends to one degree or another on > servicing the needs of the nascent bourgeoisie. There is a large > number of waiters, domestic servants, shopkeepers, prostitutes, > bodyguards, taxi drivers and so on. Many of these are on low wages, > but somehow identify themselves with capitalism and "the market". At > least they feel that they are relatively better off than the people in > the provinces, and are under the influence of the avalanche of > capitalist consumer propaganda on the television. For the vast > majority, of course, this is an empty illusion. > > A handful of super-rich parasites enjoy the kind of life-style > reserved for the billionaire class in the West. In the old days the > television screens carried mind-numbing coverage of Party Congresses > with four hour speeches by the General Secretary. Now they full of > American movies, game shows and advertisements for everything from > Wriggley's chewing gum to electrical massage machines complete with > scantily-clothed young ladies with no apparent reason for investing in > the latest remedy for cellulitis. As I write these lines, the > financial programme has just finished. After the stock-exchange > report, they are showing scenes from the latest exhibition of > top-of-the-range Western goods to hit town. An elegantly-attired > Italian gentleman is extolling the virtues of his new collection > which, he assures his audience, "represents the latest avant-garde > models." One can only guess at the price of this fancy footwear. In > the same way, a TV interviewer asks Moscow motorists stuck in a > traffic jam if they could guess the price of a metro ticket. Very few > got it right. > > October in Moscow was grey and rainy, though not particularly cold. > The meteorologists (those who have not been laid off, that is) are > predicting a bitterly cold winter. And many people are already > trembling. The economic collapse has begun to undermine the very > fabric of social life. In the Maritime Region of Russia's Far East > there are reports of regular and prolonged power-cuts. In freezing > conditions, the people of Vladivostok have endured 24-hour cuts with > no light, no heating, no cooking facilities, and sometimes no water. > Last Spring this sparked off riots in which people clashed with the > police on the streets. Now the authorities in Moscow are anxiously > looking out for signs of more serious social unrest. Terrified that an > open clash with any significant group of workers might lead to an > explosion, the government has been forced to retreat on a number of > occasions. The miners at a major open-cast mine in the Maritime Region > went on strike for two weeks to protest against unpaid wages. The > strike was immediately supported by other miners who refused to load > coal. The strike ended in victory, as the government caved in and sent > the wages. Something similar occurred with the air controllers, a > group with a lot of industrial muscle. > > Unfortunately, not all Russian workers wield similar industrial clout. > Faced with the problem of bankrupt companies and huge amounts of > unpaid wages, they see little point in taking industrial action, > although they find other ways of expressing their protests. There has > been a large number of demonstrations, pickets, hunger strikes etc. > > Under conditions of such absolute collapse, people many families find > it difficult even to get the basic necessities of life. Millions of > workers have not been paid for three, six or even twelve months. But > now the accumulated anger, bitterness and discontent is erupting to > the surface. Although not publicised in the press, there has been a > sharp upturn in the strike movement in recent months. The number of > strikes in Russia during the first half of 1997 increased five times > as against the same period last year, while the number of workers > participating increased three times. There was a total of 15,000 > strikes in this period. > > Rural disaffection > > The general mood of disaffection spreads far beyond the industrial > working class. On the 15th of October, Pravda carried an article which > reveals the explosive situation in Russian countryside. "When a > government oppresses its own people, everyone has a duty to fight for > his life." With these words, Alexander Seymyonovich Davydov, head of > the Russian trade union of agricultural workers expressed the > indignation of the rural workers against proposals to privatise the > land, a proposal which is now being openly discussed. Using the > pretext of a good harvest, Chernomyrdin argues that this success is > due to "reform" and that the next logical step is privatisation. But > this is strongly disputed by Davydov, who points a bleak picture of > conditions in the Russian villages: > > "How can you talk about 'achievements,' when the villages are > practically left without chemical fertilisers, more than 50% of the > machinery is clapped-out, and there is a chronic shortage of oil and > fuel? Doesn't the prime minister know about this? > > "ÉLast year about 80% of agricultural enterprises ended up with > losses. And that's not surprising, because the productivity of labour > in the years of reform fell by 40%. The collapse of production is > causing a rapid increase in unemployment -- one and a half times > higher than the Russian average. About 26% of the unemployed have > higher and medium education, more than a third are young people. > Structural unemployment shows that our villages have neither a present > nor a future > > "Those who attend village technical colleges get a miserable grant. > With such money today you can't even buy a crust of bread. Are their > parents supposed to be sitting on sacks of gold? Wages in the > countryside are 2.6 times lower than the average for the rest of the > economy, and they do not get much support. To date the total overdue > debts amount to 7 trillion roubles. A more sombre picture than that > presented by our countryside now, in my view, cannot be seen > anywhere." > > The figure for the fall of agricultural productivity is particularly > important, since in Soviet times, the rate of agricultural > productivity was already very low. A further collapse of 40% spells an > absolute calamity for the production of food in Russia, which is > rapidly being undermined by a flood of imports. A country which could > potentially feed the whole of Europe and more has become a net > importer of food. > > Meanwhile, the crisis in the countryside has provoked a mood of > disaffection which led to the calling of a national day of protest on > the 15th of October. The seriousness of the position is shown by the > declining rate of birth in the countryside -- down 25% in relation to > 1991, while the death rate has risen by almost the same amount. The > figure for state aid to agriculture has fallen from 19% of the budget > in 1991 to a miserable 2.4% this year. And next year they plan to cut > it further to only 1%. > > Davydov comments: "The government is cutting the village to the bone > and depriving it of life itself." In the last six years, agricultural > production has actually dropped by about one half. Scandalously, about > 70% of agricultural produce is purchased abroad. A shocking picture of > waste and decline. > > The pro-capitalist elements argue that Russian goods are too expensive > to compete with imports. The farmers must reduce their prices! But > everyone knows that both the US and the EU heavily subsidise their > farmers. The USA subsidise meat prices by 64%, grain by 38%. In > Germany the equivalent prices are 60 and 52%. In the case of Finland > and Japan, subsidies can amount to up to 70%. Yet, according to the > wisdom of the so-called "free market," Russian agriculture is > deliberately allowed to collapse and the market opened up to an > avalanche of subsidised western products. No wonder the words > "liberalism" and "market reform" stink in the nostrils of the Russian > agricultural population. They spell only ruin and poverty. Thus, > paradoxically, the rural areas of Russia are among the most hostile to > market reform, something which could not have been anticipated fifty > years ago. > > Already about half of the beef cattle, 60% of pigs and about the same > of chickens has been lost. All animal raising, except chickens is > running at a loss. Before the so-called "reform," only 2% of > agriculture was loss-making. Now it is anything up to 80%, according > to Davydov. This destruction of agriculture means that, if the West > were to interrupt its supply of meat, Russia would only be capable of > supplying 50% of demand. This fact alone shows the criminal > irresponsibility of the nascent Russian bourgeoisie. Incidentally, > this so-called "free marketeering" does not apply in other cases. > American rice is considerably cheaper than Japanese rice, but Tokyo > makes sure that its farmers are protected and cheaper foreign rice is > kept out. But Washington feels free to put pressure in Moscow to let > its products flow freely in the name of "liberalisation." And the > Yeltsin clique, which are really degenerate agents of world > imperialism, and particularly US imperialism, grovel abjectly like > servants expecting a tip which never comes. > > Most of the minerals which provide chemical fertiliser are shipped to > more profitable markets abroad, leaving Russian agriculture with a > miserable 20% of the total. This short-sighted policy will eventually > inevitably mean an exhaustion of the soil, with even more calamitous > consequences. Symptoms of this already exist in the form of lower > yields of grain per hectare. At the same time, cuts in social spending > means the closure of village clinics, clubs, libraries, schools and > hospitals which made life a bit more bearable for the rural > population. > > Conflict in the Duma > > The general mood of discontent finds a distorted expression in the > struggle at the parliamentary level. The presentation of the draft > budget for 1998 immediately gave rise to a new conflict in the State > Duma where the CPRF and its allies (the Agrarians and the People's > Power groups) has a majority. Reporting on the balance sheet of the > current budget, Chernomyrdin painted the course of the last nine > months in glowing colours. He claimed that for the first time since > the "reform" began, the GDP has not fallen, and that industrial > production has actually risen -- by 1.5%! (Pravda 9th October 1997) > Chubais, the main spokesman for the "reformers" also pointed to > success, but was forced to admit that the general appraisal was > "unsatisfactory." A more sombre picture was presented by the chairman > of the state budget committee, Mikhail Zadornov. He underlined that > about half the taxes went uncollected and that many branches were > completely running at a deficit. The figure for tax collection is not > really surprising since the Mafia is not renowned for its fiscal > probity. > > However, the official estimates for next year's growth are disputed. > According to figures cited by the Chairman of economic policy, Yuri > Maslyukov, this year there was a reduction in the growth of investment > in production by 9.3% and that the investment programme had collapsed. > In general the economic situation was aggravating social tensions. The > point was made to me very forcibly in a conversation I had with Boris > Slavin, Pravda's leading political columnist. Slavin asks the question > "Do we need a government that is ruining the country?" He paints a > black picture of economic and social collapse in complete contrast to > the official propaganda: unemployment has already reached the 10 > million mark: "People await the winter with trepidation": as in the > days of the Civil War, millions of homeless children and beggars > wander the streets of Russian provincial cities. Hundreds of factories > staid idle and indebtedness increases. > > On this basis, Slavin points out what is self-evident -- that there is > ample basis for a vote of no-confidence in the Duma. "Shock therapy" > has led to a catastrophic situation. Yet the Yeltsin government > persists in dishing out more of the same medicine. Yet all the main > parties in the Duma -- including the CPRF -- are trying to avoid a > vote of no-confidence (also Yabloko and Ryzhkov's "People's Power"). > Instead of returning the budget to the government (i.e., rejecting > it), they referred it to a three-party commission (with > representatives of the government, the Duma and the Federal Soviet). > This was proposed by Zyuganov himself, who said that if the commission > did not come up with a solution the people's discontent would "spill > over onto the streets and it will all end up in a big fight," which > most people did not want. > > Thus, the CPRF leaders are acting like the old Russian liberals trying > to frighten the autocracy with giving concessions by the threat of > revolution. It appears that Zyuganov originally agreed with other > opposition leaders (Ryzhkov) to go ahead with a no-confidence vote, > but changed his mind. The last thing these people want is a election, > let alone a revolution! They are desperately clinging to their > parliamentary seats. They are fatally stricken with the disease of > parliamentary cretinism. The reference to a commission was a sell-out > because, as Chubais remarked in private, the Duma can only change the > small print of the budget, not the "macroeconomic aspects." In other > words, a farce. > > Within days, the No Confidence motion was withdrawn in exchange for a > few minor concessions. The hopes placed by millions of CP voters in > their elected representatives were dashed. The bourgeois-controlled > mass media lost no time in praising the CPRF Duma faction for their > "realism." Slavin comments: "So that's how the leaders betray the > interest of the working people, of all the poor and those people > humiliated by the powers-that-be, who naively believed that the slogan > launched by the 4th Congress of the CPRF 'No Confidence in the > Government!' would be carried into practice." > > Cracks in the CP > > The CPRF leaders are terrified of new elections in which they might > lose their seats, with all the perks and privileges associated with > them. Yeltsin, a skilful gambler, played his ace card when he > threatened to dissolve parliament and call elections. Zyuganov moved > swiftly to prevent this and accept a so-called "compromise" which was > really a sell-out. The very next day the press openly speculated that > a rotten deal had been struck between the Yeltsin government and the > "Opposition" in parliament: "Analysts also suggest that a secret > arrangement may be in the works between the opposition and its closest > government supporter, Prime Minister Viktor Chernomyrdin," writes The > Moscow Times (17/10/97.) > > However, Zyuganov's shameful capitulation in the Duma will not solve > anything. The terrible social contradictions will grow. Ultimately > they will find an expression even in the CPRF, where a growing section > is bitterly critical of the leadership. On CP Duma deputy openly > voiced his anger against Zyuganov in a private conversation with me > just after the climb-down: "He (Zyuganov) is not a Communist. He's not > even a Social Democrat. He's a social-chauvinist." The same man > confessed to me that "The CP does not advocate Communist ideas any > more. Where does the Party advocate nationalisation and the state > monopoly of foreign trade? Nowhere! There are more Communists outside > the Communist Party than inside! Just look at how radical the workers > are!" > > Some of the (well-informed) people I spoke to thought the CPRF would > eventually split. Certainly the bourgeois elements seem to be aware of > this possibility and openly back the "moderate" wing around Zyuganov. > The same article goes on: "The government is trying to bolster the > position of the Communists moderate leader, Gennady Zyuganov. It was > Zyuganov who withdrew the no-confidence motion this week after he > received a conciliatory personal phone call from Yeltsin, but he is > coming under intense pressure from more radical elements in the > opposition." And the article concluded: > > "The government should make an effort to support these particular > Communists, because the ones on the outside looking in are much more > angry and dangerous." > > But weakness invites aggression. The "statesmanlike" conduct of > Zyuganov and co. earned them no thanks from the government, but only > new and well-deserved kicks. Showing his complete lack of concern for > Zyuganov and co., Yeltsin announced that there would be no > presidential elections in 2,000 and that the next president would be a > "young democrat" -- a phrase which has aroused a good deal of > speculation. Who can it be? Not Chubais, who is generally hated and > will almost certainly be got rid of. Maybe Nemtsev, who is now > Yeltsin's favourite protégéÉ > > But all these plans and intrigues will come to nothing once the > working class begin to move. And that cannot be far off. > Paradoxically, if the economy does pick up just a little (and that is > possible), that will be the signal for a big movement on the > industrial front. Even this year, as we have seen, there was a big > increase in the number of strikes (teachers and miners in the main). > At the present time there is a movement of the engineering workers > which has not been reported. If the heavy battalions of industry get > on the move, the entire position can be rapidly transformed. Even a > small upturn would encourage such a development. Once it starts, it > can assume tremendous dimensions. Then Yeltsin and his "young > democrat" would quickly be swept aside. > > Until that time, the present situation of parliamentary deadlock, > manoeuvres and re-shuffles will continue to grind on tediously, > altering nothing except the careers of various individuals. There is > still plenty of combustible material -- the threat to cheap housing > and social services -- all could spark off an explosion. At a certain > point quantity will turn into quality. When they least expect it, this > sleeping volcano will erupt. > > London, September 27, 1997 > > [counter] > > [Back to In Defence of Marxism] [Back to Russia] --- from list marxism-international-AT-lists.village.virginia.edu ---
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