International Voice
 03/10/02
United States: Bush Wins Stunning Political Victory NEVER IN living memory has a sitting president strengthened his party's position in both the Senate and the House of Representatives in mid-term elections, but George Bush has managed it. This is in spite of the deepening economic recession.
Brazil: Will The Workers' Party Live Up To Its Name? NOW FORMER metalworker Lula, leader of the Workers Party (PT) has won the election for Brazil's presidency, a new era of class struggle is opening up. The working class and poor's high expectations will clash with the country's (and the world's) crisis-ridden capitalist system.
Israeli Crisis: Governing Co-alition Splits THE ISRAELI 'national unity' government coalition has collapsed following the withdrawal of six Labour ministers. Elections have been called for early next year. Prime Minister Ariel Sharon's unstable coalition had been ridden with infighting over budget plans for 2003, mainly over which section of the population should suffer the worst cuts!
Turkey: Ruling Parties Routed In Elections TURKEY'S ELECTORATE passed judgement on the governing coalition's handling of the country's economic crisis by voting them out of office. The chief beneficiary of the massive protest vote was the 'Muslim democrats' of the Justice and Development Party (AKP), who secured a parliamentary majority with around 35% support.
Theatre Of War: Over One Hundred Dead in Moscow Hostage Crisis PUTIN'S 'WAR against terror' has brought terror to Moscow itself. A group of 50 heavily armed Chechens drove through Moscow in two minibuses and seized a theatre full of people in the middle of a popular musical show.
Chechnya: A History Of Oppression
THE LONG suffering Chechens have seen thousands killed and wounded and hundreds of thousands made refugees in two bloody wars with Russia in the last decade.
Latin America Radicalises A NEW wave of radicalisation is sweeping through the Latin American continent. It is reflected in increased support for radical populist movements in many countries and the landslide victory of the Workers' Party (PT) candidate, Luiz Inacio 'Lula' da Silva, in Brazil's presidential election.
Bush's 'War on Terror' After Bali
THE BLOODY BOMBING of the Sari Club in Kuta Beach, Bali, on 12 October provoked shock and outrage around the world, especially in Australia, home of most of the victims. Nearly 200 died and at least 300 were injured. This was a completely indiscriminate attack against young people, from Australia and Europe, clubbing while holidaying in Bali.

United States: Bush Wins Stunning Political Victory

by Lynn Walsh, from The Socialist (11/11/02)

NEVER IN living memory has a sitting president strengthened his party's position in both the Senate and the House of Representatives in mid-term elections. This is in spite of the deepening economic recession.

The Republicans, dominated by their right wing, now control the presidency, the Senate and the House. Even with only narrow control of the Senate (51 to 49) Bush is likely to stack the Federal judiciary with right-wing judges.

Bush's election tactics paid off. Touring 12 cities and 15 states in the last few weeks in support of key Republican candidates, Bush made a personal appeal - as 'commander-in-chief of the war against terrorism' - for a loyalty vote. The war fever distracted just enough attention away from the economic downturn and the wave of corporate business crimes.

And there were two other vital ingredients: piles of corporate cash and the utter political bankruptcy of the rival big-business party, the Democrats, passively supported by the trade union leaders. Afraid of accusations of 'disloyalty', they let Bush get away with it.

The Republicans' mid-term victory appears to put fresh wind in Bush's sails when it comes to a possible military strike against Iraq. Yet opinion polls showed declining support for the president's Iraq policy during the campaign. Bush noticeably toned down his war-mongering rhetoric.

Winning a few more seats in Congress will not shield Bush from a growing reaction against the mounting costs of military adventures or prolonged entanglement in Iraq.

On the home front, Bush will no doubt treat the mid-term results as a mandate to aggressively pursue his pro-big business agenda. But in reality there was no Republican 'landslide', no 'swing to the right'. True, the Republicans captured Senate seats in some traditional Democratic strongholds such as Minnesota, Missouri, and Georgia, and generally tightened their political hold on the South.

Overall, however, the Republican gains were very marginal. The voting section of the electorate is still split almost 50-50 down the middle.

Deep alienation from the whole political system is shown by the low turnout, despite the momentous events of the last year or so: 11 September, the collapse of the stock-exchange bubble, business scandals, and the prospect of war against Iraq.

The turnout in this year's primary elections was only 17% of the voting age population, the second lowest primary turnout ever recorded. The reported turnout on Tuesday, 5 November was about 37%, compared with the 35% who voted in the 1998 mid-term elections, the lowest for 56 years.

AS AN opposition, the Democrats totally failed - despite all the ammunition to hand. They avoided challenging Bush's determination to link 11 September attacks to 'regime change' in Iraq. They failed to defend democratic rights, drastically curtailed in the name of the 'war against terrorism'.

They did not even campaign against Bush's $1.35 trillion tax cut over ten years, which will go overwhelmingly to a million super-rich Americans. In spite of deep popular anger at big-business scandals, the Democrats failed to expose the rottenness of the system - not surprising when many Democratic leaders took Enron and other corporate cash.

They have not championed a state-financed health-care system, despite the fact that over 41 million people (14.6%) have no health insurance and millions more have completely inadequate health cover.

The Democrats have paid the price for the political cowardice and bankruptcy of their leaders. The once-strong Democratic Party machine has crumbled. Voters registered as Democratic supporters have declined by 18 percentage points from the 1960s peak.
While the leaders of most labour unions are still stuck like glue to the Democrats, handing them ever-bigger amounts of election cash, a growing bunch of labor leaders are turning to Republican office-holders. In New York State, for instance, several public-sector unions supported the now re-elected Republican governor, George Pataki, on the strength of shortsighted pay deals that will rebound on their members in the future.

The Republicans, on the other hand, have strengthened their political machine, especially in the South. With huge infusions of big-business cash, they have created an enormous network of fund-raisers, lobbyists, right-wing think tanks, radio and TV talk-show hosts, and grass-roots activists, who increasingly conduct door-to-door canvassing.

While the overall turnout was down, the turnout in some seats targeted by the Republicans (for instance, in New Hampshire and Georgia) rose quite sharply.

Corporate agenda

Even after his illegitimate presidential victory in 2000, courtesy of the Supreme Court, Bush rigorously pushed his right-wing, pro-business agenda. Corporate leaders have already presented a new wish list.

They want extended, permanent tax cuts for big business and the super-rich. They are pressing for Federal subsidies for corporate terrorism insurance. Oil companies are pushing to drill in the Alaskan nature reserve, and for the general relaxation of environmental protection.

Business wants new curbs on the right of workers and consumers to sue companies for mismanagement, environmental pollution, and health-and-safety violations. There are currently over 51 vacancies on the federal judicial bench: if Bush now fills these with right-wing judges, with life tenure, that will have far-reaching, adverse effects on women's rights, democratic rights, and a whole range of social issues.

But there is a big question mark over how far Bush will be able to go. "Business leaders and their opponents in Washington agree that if the Republicans over-reach in their zeal to advance a pro-business agenda, they risk a strong protest," commented the New York Times, 8 November.

During the election campaign, the economy and business scandals were overshadowed by war fever. But it is on the economy that Bush will be judged in the 2004 presidential election. All the signs are that US capitalism has moved into a period of prolonged stagnation and crisis, though the short-tern business cycle will continue. With full control of Congress, Bush will have nobody else to blame.

The continued slide of the economy, with rising long-term unemployment and growing problems of debt, will provoke big upheavals. New York City, for instance, has a budget deficit of between $5 billion and $6 billion posing the threat of massive cuts. Recent industrial action by transport workers, firefighters, and other City workers is an overture to coming struggles throughout the US.

During the campaign, Bush used the Taft-Hartley act to impose a 90-day 'cooling-off' period on the Longshoremen (dockers), who shut down all the West Coast ports. Bush's unusual mid-term success will not protect the Republicans against a growing tide of opposition, protest movements and workers' struggles.

Immediately after the Democrats' defeat, their House leader, Dick Gepthardt, stepped down. The favourite for his replacement is Nancy Pelosi, who has a strong base in Democrat-dominated California.

She admitted they had utterly failed to distinguish themselves from the Republicans. Like former vice-president Al Gore, she is calling for an end to the cosying up to Bush. Pelosi was criticised by one possible rival, Martin Frost of Texas, who claims the country has shifted to the right and says the Democrats should follow suit.

Frost is reportedly "very uneasy about the party moving sharply to the left". In the wake of such a shameful defeat, however, it is likely the Pelosi trend will prevail.

In reality, however, the 'left' of the Democratic Party is only marginally more liberal than its right wing. The Democrats are a big-business party, through and through, though they have traditionally relied on the support of the trade unions, for money and a loyalist vote.

But their record under Bush, who represents the greediest and most aggressive section of the US capitalists, shows the Democrats offer no alternative for working people. Their support for social reform and workers' rights is at best half-hearted.

They have no solutions to the growing crisis of US capitalism. Ultimately, they are tied to their big business masters, who rein them in if they bend too much to pressure from the labour movement or the party's populist wing.

The time is long overdue for a party to provide political representation for working people, to mobilise workers, women, minorities, and young people in struggles to defend their interests and change society. The potential exists.

While voter registration has generally fallen, the number of voters registering as 'third party' supporters or 'independents' has increased eight-fold since the 1960s. More than a third of young African-Americans, traditionally strong Democrat supporters, now register as 'independent'.

The small (currently shrinking) Labor Party, founded in 1996 with the support of a handful of unions, has not got off the ground. Union leaders vetoed electoral campaigning, which is a vital tool for building a new mass party.

Ralph Nader's 2000 presidential campaign on a Green Party ticket, despite its serious political shortcoming, showed the potential for a new party on the left. Nader, a radical populist, polled 2.7 million votes, and would have got more had not the race been so close (leading many Nader sympathisers to vote Democrat to keep out Republicans). Currently, some Green candidates are increasing their votes (for example, in Minnesota).

A political catalyst is needed to bring together the forces for a new mass party - labour union and community activists, minority and environmental campaigners, anti-war activists and wider layers who are sick of the corrupt monopoly of the big-business duo, the Republicans and Democrats. Events in the next few years will unavoidably bring this urgent task to the forefront of US politics.

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Brazil: Will the Workers' Party Live up to It's Name?

by André Ferrari, a member of Socialismo Revolucionario in São Paulo, the Brazilian section of the CWI.

NOW FORMER metalworker Lula, leader of the Workers Party (PT) has won the election for Brazil's presidency, a new era of class struggle is opening up. The working class and poor's high expectations will clash with the country's (and the world's) crisis-ridden capitalist system.

Lula won the largest vote in Brazil's history, easily beating the former Cardoso government candidate Serra, who was backed by big business, bankers and the IMF. The PT won more seats in congress and state legislative assemblies and now has the biggest parliamentary group in states such as São Paulo.

Lula was as an immigrant to São Paulo from the Northeast, he knew hunger and unemployment, was exploited in a factory, and watched his first wife and new-born baby die in a public hospital.

The PT's past record was of the incorruptible party of the common people, the only one not blamed for the current situation. People expected profound changes. Lula's victory was due to the PT's combative past not its current moderation.

But in the state elections PT's candidate for governor and current mayor of Porto Alegre was defeated by the capitalist PMDB, which was actively supported by all the local conservative forces, in Rio Grande do Sul.

This defeat reflects some decline in support for the PT state government, which created expectations of major changes but couldn't deliver. In many cities run by PT mayors, Lula's vote went below the national average, reflecting frustrated expectations when they govern within the narrow limits imposed by capitalism.

Lula won because voters rejected the politics of the ''free market' but these defeats show that PT won't be able to meet the masses' huge expectations unless it breaks with Cardoso's capitalist policies and the IMF.

The PT national president says that Lula must look for support from state governors from many different parties. In congress, the PT block and its allies have no majority and are looking to broader alliances with capitalist parties, maybe even some in Serra and Cardoso's PSDB, which will lead the opposition to Lula.

Despite PT's recent moderation of their positions and alliances with sections of big business, Lula's victory shows most Brazilians' powerful desire for change.

This was a vote against eight years of 'neo-liberal' 'free market' policy under Cardoso, against unemployment, falling real wages, degraded public services, the effects of privatisations, the rising level of violent crime due to the economic crisis and also against Cardoso's tolerance of corruption.

Lula's election was a setback for capitalism and a step forward for Brazil's working class. A new stage in the class struggle is opening up.

Mood for change

The PT didn't win the elections because it became more ''moderate' and dropped its socialist perspective. It won because its 22-year history of struggle or resistance made it the channel for this mood for change. But the PT top leaders' main concern over the last period has been to convince international investors.

Not a word was said in this electoral campaign without weighing up the likely impact on investors' mood. Lula committed to Cardoso's agreement with the IMF, and repeatedly said that all existing contracts will be honoured and no unilateral steps taken.

'Peace and love'?

Politically, PT's leadership allied itself with the traditional parties and regional bosses of Brazil's capitalist class. Lula's vice-president was Alencar, one of Brazil's biggest bosses and former presidents Sarney and Franco supported him.

In the second round he even got support from an ex-minister of the military regime Delfim Netto whose anti-working class measures caused the metalworkers' strikes led by Lula in 1978.

Lula's programme is based on economic growth and a 'social pact' of workers, bosses and government. The Social Pact became the great magic wand to let the government solve the enormous social problems while still meeting the demands of the financiers and IMF.

Lula's "Peace and Love" policy curbed the energies of PT members, particularly the youth. But Lula had the support of the main mass organisations of workers, youth and students. In the last phase of the campaign particularly, there was more involvement among activists for Lula.

The Cardoso government and its policies were in crisis. Serra oscillated between identifying with the Cardoso government and distancing himself from it.

The PSDB tried to sow panic around the 'Argentinisation' of Brazil under Lula but this had less effect than in 1998, when Cardoso still had some support for axing hyperinflation. In 2002, "Hope won out over fear," as Lula said.

The PT victory came from its past of struggle and consistent opposition to previous governments. In fact the PT's 'no controversy' policy threatened to damage the image of consistency built during two decades. Lula could have won in the first round, but all his opponents exploited his vague approach.

Many working-class and youth voters just closed their eyes to the PT's moderate policy in the campaign. Many thought it was just a tactic to win the election - that once in office Lula and the PT would return to its previous combativity.

The PT isn't just an electoral phenomenon. It is still the political leadership of the workers' and people's movement. Lula's victory and his future government with capitalist allies will test this authority and could encourage a reshaping and reorganisation of the left.

A world champion of inequality

Lula's policy wasn't just an electoral tactic. PT's strategy and programme are not socialist - they seek to run capitalism better than the capitalists themselves. So inevitably the masses' enormous expectations will clash with the limits imposed by the economic crisis and the PT's moderate programme today.

Nothing was solved by September's agreement with the IMF. After eight years of Cardoso, average GDP growth was 2.3% and unemployment was higher than ever. Average income fell and social inequality remained obscene. Violent crime is at alarming levels.

Public services were wrecked and privatisations only made things worse, as proved by last year's electricity rationing crisis. Land is still controlled by a tiny minority leading to violent clashes.

52 million people live in absolute poverty. Hunger, endemic diseases of poverty, semi-slave work, etc, all make Brazil a world champion of social inequality.

Even with US$90 billion coming in from privatisations, Brazil's public debt jumped from 30% to 60% of GDP during Cardoso's government, to reach £260 billion now, from about £20 billion in 1994 when Cardoso was elected.

Dependence on foreign capital means the constant threat of 'defaulting' on the debt haunts the country. In recent months, only a new IMF agreement and loan averted a moratorium (suspension of debt payments) but this problem will return.

80% of the public debt is in the hands of domestic creditors. As in Argentina a default would mean banks and business failing and enormous social costs.

In September's IMF agreement the foreign banks tried to prepare for a future moratorium. Most credit lines are blocked due to the international economic crisis so the Brazilian Central Bank pushed up interest rates and the currency has been very heavily devalued.
The IMF target was a budget surplus (before interest charges) of 3.75% of GDP for 2003. This would mean scarce funds for social spending. But even this target is insufficient and was only adopted to get the presidential candidates to agree it. Lula committed to the target but is willing to increase it.

The finance market wants blood - some talk of a 6% target. Crisis-ridden capitalism would merely be deciding which social costs were less evil: those of spending cuts or those of a collapsing Brazilian economy.

Lula hopes to avoid this dilemma between maintaining Cardoso's monetarist policy and seeing the country collapse by economic growth through higher exports gradually increasing income to expand the domestic market.

In fact, Brazil has had trade surpluses recently, but these were due to recession reducing imports and a weak currency not to big increases in exports. During an international recession, the perspective of higher exports will meet with serious obstacles. If the IMF agreement is kept to, not even a limited national-development policy is possible in Brazil.

Socialism not social contracts

One section of big business thinks that PT's broad social basis means it can easily demand a social pact and sacrifices from the people. But PT's base did not elect Lula for more sacrifices but to end them.

Urgent measures to combat hunger have already been announced and some limited palliative measures will be taken to mitigate the gravest effects of the crisis.

At present many workers see a social pact as a way of getting 'concessions' from bosses and bankers without provoking more turbulence in the economy. But when it becomes clear that the workers will carry most of the burden, any honeymoon period will end. The social movements have an enormous backlog of demands.

One of Lula's first challenges will be the minimum wage, now a miserable 200 reals (about US$54). PT parliamentarians are calling for an increase to around US$100 by 1 May, which is not the intention of PT members in government.

If companies are closed and large-scale layoffs follow, there could be sharp conflicts. The struggle against unemployment hasn't reached the level of Argentina but the potential is there. Also the demand for land and credit to plant crops will mean heavy pressure from the landless.

New state governors will also press for debt rescheduling and more social spending. The PT in federal government will tend to avoid rescheduling at least during 2003. But a financial crisis in the states could complicate the situation.

The first struggles may not be directly against Lula's government, but to press the local elites for concessions. Lula will try to balance between the two sides but over time could lose the support of both of them. At that point, a capitalist opposition would try to recover their strength.

Lula wants to avoid scaring investors or clashing with the IMF. But in a worsening crisis when society is polarised, the government may be pushed into unorthodox measures, regardless of his intentions.

Lula says he won't "betray the expectations" of those who voted PT expecting real change. But to do that, he needs a policy which can tackle the economic crisis without punishing still more the workers and poor.

The current PT programme does not consistently pose such a policy. No party can meet the expectations of Lula's social basis while at the same time satisfying the financial market and the IMF.

How the Left could grow

Workers' experience of Lula in government could help Brazil's left grow as sections of the PT ranks will see that Lula's "peace and love" policy is his long-term strategy and will look to an alternative.

Only great mass struggles will provide the conditions for the growth of a left and socialist project. The left should explain that voting in Lula was important, but just the first step - the workers and youth must be mobilised to conquer our rights through struggle.

Lula promises to govern for all sectors of society through negotiation. But there is no way to tackle the crisis without making some part of society pay for it.

The balance of forces will determine if working people again bear the burden or if this time workers defeat the national and international elites, even if this means overcoming the PT leaders' limitations.

The left should denounce the agreement with the IMF and demand a government without capitalist parties or capitalist politicians.

A workers' government faces a stark choice. Does it stop paying off debts merely because Brazil's economy is on its knees? Or does it stop paying off debt to the big capitalists in a purposeful manner, mobilising the workers around an anti-capitalist programme?

This programme should pose nationalisation of the banks and finance system under democratic workers' control, renationalisation of privatised companies and all those needed to implement an economic development plan to raise the minimum wage, reduce the working day to create jobs and meet the organised social movements' demands.

The PT in government will make the leaders adapt even more to capitalism but it will also lead to opportunities for a consistent PT left.
A settling of accounts between the PT's two sides is inevitable. The construction of a new mass workers' party, a left-wing socialist one, may be posed at some stage. The PT left should build towards such a socialist political project and seek unity in action.

PT's fighting history won the election

In may 1978, during the military dictatorship, metalworkers at Saab-Scania in a São Paulo industrial complex walked out in a strike that spread throughout the industry, echoing throughout Brazil and opening a new stage in the country's workers' movement.

That strike started the mass struggle that toppled the military regime and heroically resisted the anti-working class policy of governments that followed.

In 1980, the Workers Party was founded to "create a channel of political and party expression for the urban and rural workers and all those exploited by capitalism" (PT Political Declaration, 1979).

The PT attracted all the most combative elements to fight the dictatorship. It refused to submit its policy to the dictatorship's capitalist opponents such as the MDB (Brazilian Democratic Movement).

In its 1979 Charter of Principles, the pro-PT Movement emphasised that the new party would "refuse to affiliate representatives of the exploiting classes, (...) the Workers Party is a party without bosses! "

It adopted a critical attitude both to reformist and Stalinist regimes, and supported solidarity with revolutionary struggles in Latin America. PT's deep working-class roots, its mass basis and its class and anti-capitalist positions, made the party a pole of attraction for the combative left.

After the enormous mass mobilisation in 1984 throughout Brazil for "Direct Elections Now" the PT campaigned against voting for the capitalist opposition to the military regime. The PT stood Lula as candidate for president in 1989, in the first direct elections after the 1964 military coup but lost narrowly.

This electoral defeat and the impact of the collapse of the Stalinist USSR, the defeat of the Sandinistas in Nicaragua and capitalism's ideological offensive in the 1990s all pushed the PT leaders toward more moderate social democratic positions.

Sections more to the left took a majority in PT in 1993 but did not constitute an alternative. This only deepened the rightward turn when the old leadership returned. The PT lost an opportunity to win the presidency in 1992, when a mass movement toppled Collor's regime but the leadership supported vice-president Franco instead of demanding new elections.

During the Franco government the capitalists launched the Real Plan for economic stabilisation with Cardoso as candidate for president. Illusions in this and the end of hyperinflation gave Cardoso victory in the 1994 and 1998 elections.

Cardoso's second government though was marked by permanent crisis leading to PT's victory in the 2002 presidential elections.

Today's PT still retains much of its authority. Workers' experience of a PT government may be a decisive milestone on the road to building a mass left alternative to the party leadership's programme.

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Israel: Governing Coalition Splits

by Judy Beishon, 4 November 2002

THE ISRAELI 'national unity' government coalition has collapsed following the withdrawal of six Labour ministers. Elections have been called for early next year. Prime Minister Ariel Sharon's unstable coalition had been ridden with infighting over budget plans for 2003, mainly over which section of the population should suffer the worst cuts!

Right-wing nationalist parties in the government want more money to go to Jewish settlers in the occupied territories. Labour leaders opposed this out of fear for their electoral prospects in the imminent race for leader of the party, rather than from any principled stance (the biggest expansion of illegal settlements took place under Labour governments).

When the coalition collapsed, Sharon desperately tried to form a new one based more heavily on small far-right parties, so his government could finish its remaining year in office but this failed.

Now new elections have been called, as things stand, polls suggest that Sharon's Likud party is likely to make gains. Such gains would be because ordinary people see no viable alternative at present.

A majority detest Sharon's programmes of cuts and tax increases but there is no mass workers' party yet to represent working-class interests and to pose a socialist alternative.

Palestinians' plight

Israeli workers' anger against the government over the economy has not yet extended to the military conflict. Although most think that negotiations leading to an eventual Palestinian state are necessary, presented with no alternative to Sharon's policy of brutal force to counter Palestinian suicide bombing missions, they support this policy for now.

The latest suicide attack, in Northern Israel, was the 145th suicide bombing in this two-year intifada. It once again showed, in a horrific way, the Palestinian masses' sheer desperation in the West Bank and Gaza strip, faced with deteriorating conditions.

Curfews, road blocks, arrests and killings by the Israeli Defence Force (IDF) continue on a daily basis. Whole towns in the West Bank are, in reality, huge prison camps with starvation conditions and there are now increasing IDF incursions into the Gaza strip.

The Director of the UN Relief and Works Agency said that a higher percentage of children in the occupied territories suffer from chronic and acute malnutrition than in Zimbabwe and the percentage is similar to Congo.

The latest devastating edicts of the Israeli government are a ban on water drilling in Palestinian areas and an effective ban on Palestinian farmers being able to harvest their olive orchards, on the grounds that the IDF cannot offer adequate protection from far-right armed Jewish settlers.

A violent clash took place recently between settlers at Havat Gilad and the IDF, but generally settlers are given a free hand to harass and sometimes shoot Palestinian villagers. Last month, an entire Palestinian village was forced to flee following attacks by settlers.
Sharon's policy of increasing the settlements is designed to create 'facts on the ground' to pre-empt future concessions. PA leaders recently complained to US representatives that they see a 'two-states' solution to the conflict as being jeopardised by new settlements.

Continuing resistance

For representatives of the Israeli capitalist class, nothing they do in this bloody conflict will provide peace and security for Israelis. A lengthy period of re-occupation would be very expensive and lead to an increasing number of IDF deaths.

A recent mass breaking of the curfew in the West Bank town of Nablus, with thousands risking being shot, showed the Palestinians' will to fight back and their feeling that they have nothing to lose.

Palestinian leader Yasser Arafat's Fatah organisation has recently decided against suicide bombings of Israeli civilians, but these continue to be carried out by militias such as Islamic Jihad, and Fatah-linked militias have now turned to increased attacks on Jewish settlers.
Neither would a future attempt by representatives of the Israeli capitalist class to enforce a unilateral separation of the territories from Israel or expel Palestinians from the territories altogether, be any solution.

Will there be another 'peace' deal? At present, Sharon is rebuffing proposals by the US regime to set more talks in motion and the Palestinian masses have little appetite for a new version of the failed Oslo agreement. However, at some stage a new deal could be signed and lead to an ebb in the conflict, but it would not be a deal that will satisfy the Palestinians' aspirations for their own state and decent living standards.

A genuine Palestinian state would be seen as too great a security threat by the Israeli capitalist class and in any case, world capitalist powers would not be rushing in with adequate resources to ensure its development.

No capitalist solution

A solution that offers a decent future to the Palestinian and Jewish masses can only be provided on the basis of working class people taking matters into their own hands and ending capitalism in the occupied territories and in Israel.

Only on a socialist basis, with the construction of a socialist Palestine and a socialist Israel as part of a socialist confederation of the Middle East, can a 'final settlement' be reached that will end future bloodshed.

Maavak Sozialisti, a growing Marxist organisation in Israel, affiliated to the CWI (Committee for a Workers' International), is promoting socialist ideas in all its activities.

Consisting mainly of young activists with great energy and determination, Maavak Sozialisti is taking the vital first steps towards the building of a real alternative to the present nightmare situation in the Middle East.

Workers face economic crisis - worst recession in 25 years provokes strike wave

Some journalists have suggested that greater defence expenditure is the cause of the present economic crisis. It has increased by around $2 billion a year, so it has certainly worsened the public debt (standing presently at 103% of GDP). But the economy was already in deep crisis before the second intifada broke out.

The worldwide bursting of the 'dotcom' bubble hit Israel very badly, as hi-tech industry had been the engine of economic growth, accounting for 70% of exports. A combination of the economic crisis and military conflict has led to a two-thirds collapse in foreign investment and a halving of tourism.

With unemployment at 11% and rising, young people are not looking forward to the future. Many question the point of higher education as a large number of educated people are on the dole. The saying going round is that "it's only worth getting a degree because the queues for graduates in the unemployment offices are shorter"!

Strike action

Israeli workers were told by their bosses and government that while the Palestinian Intifada continues, now is not the time to take action and that nothing new would be offered as a result of it. However, workers made it clear that they are not willing to go on suffering from what is the worst recession in Israel for 25 years.

Four weeks ago, mounds of rubbish piled up in the streets of cities and towns across the country, stinking in the hot sun. This was the most visual sign of an indefinite strike of municipal workers, struggling against a wage freeze which has meant their pay has not kept up with inflation.

Government workers took 'go slow' action at the same time, also demanding improved wages. The action is continuing as no agreement has been reached on cost-of-living allowances in the private sector.

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Turkey: Ruling Parties Routed in Elections

From The Socialist (11/11/02)

TURKEY'S ELECTORATE passed judgement on the governing coalition's handling of the country's economic crisis by voting them out of office.

The chief beneficiary of the massive protest vote was the 'Muslim democrats' of the Justice and Development Party (AKP), who secured a parliamentary majority with around 35% support.

The election was called early after the governing coalition started to disintegrate over the continuing economic recession and the handling of a $16 billion bail-out loan from the International Monetary Fund (IMF).

Prime Minister Bulent Ecevit's mis-named Democratic Left Party won a pathetic 1% while his two coalition partners, including the far-right Nationalist Action Party (MHP), failed to obtain the 10% threshold vote needed for Parliamentary representation.

The secularist Republican People's Party (CHP), with no parliamentary representation at the last election, secured 19.3% of the vote (178 seats).

However, the leader of AKP, Recep Tayyip Erdogan, cannot become prime minister as he was banned by the pro-military courts from standing for parliament for inciting 'religious hatred'.

The power behind the Turkish state remains the military whose capitalist, secularist ideology - based on modern Turkey's (established in 1923) founding father Kemal Ataturk - is opposed to both an Islamic state and socialism. The military has carried out several coups to halt workers' struggles and in 1997 to remove a government headed by an earlier incarnation of AKP.

Erdogan has gone out of his way to stress that AKP hasn't a hidden Islamist agenda, that it favours Turkey's early entry into the European Union and supports the capitalist global economy. Turkey's capitalists gave AKP a cautious welcome as the stock market surged by 7.2% and the lira currency recovered some of its earlier fall (reaching a record low) against the US dollar.

Erdogan is, however, more lukewarm about US-led plans to attack Iraq. Turkey is crucial as a staging post for an invasion force and last week was visited by US general Tommy Franks, the man responsible for military operations. However, Erdogan has said that any action must be first approved by the United Nations.

Economic crisis

Underpinning Turkey's political crisis is the country's acute economic problems. Similar to Argentina's capitalist crisis Turkey's economy faced meltdown after a flight of capital and the collapse of the currency last year, during which the economy shrank by 7.4%. This followed an 18 month-long IMF imposed austerity budget which meant the country's working class paid a heavy price - ie millions unemployed, 80% inflation, wage cuts and privatisation, leading to mass protests by trade unions and small traders.

In February 2002, the IMF approved a further $16 billion three-year loan dependent on massive cuts in government spending and more privatisations. And although the economy has revived, it has been a jobless recovery.

Failure to deal with the ongoing crisis prompted a series of high-profile defections from Ecevit's party.

Desperate for assistance, Turkey's capitalist class has sought to gain entry into the EU by seemingly liberalising its laws to tackle its appalling human rights record. It recently abolished the death penalty sparing the life of jailed Kurdish PKK leader Abdullah Ocelan and has granted limited political and civil rights to Turkey's large Kurdish minority.

Nonetheless, Human Rights Watch say one million Kurds remain internally displaced refugees, unable to return to their towns and villages in the south east where the military had been fighting PKK guerrillas.

Moreover, in the last two years nearly 100 political prisoners have fasted to death or have been killed by military operations in Turkey's brutal and overcrowded jails.

Turkey's working class, with its fighting and socialist traditions, will once again be forced to counter the attacks of Turkey's capitalist class and international capitalism.

The AKP with its pro-market programme will prove as incapable as the previous coalition in dealing with the crisis. The only solution lies on the road of forging a new mass workers' party committed to socialist change.

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Theatre Of War: Over One Hundred Dead in Moscow Hostage Crisis

by Rob Jones, Moscow

PUTIN'S 'WAR against terror' has brought terror to Moscow itself. A group of 50 heavily armed Chechens drove through Moscow in two minibuses and seized a theatre full of people in the middle of a popular musical show.

In the early hours of Saturday 26 October, Russian special forces stormed the theatre after pumping in a "special substance" - a gas which not only killed a number of the terrorists but, at the time of writing, has also claimed the lives of 120 of the hostages.
Hundreds of others are still in hospital suffering from breathing problems, loss of memory and of course psychological shock. Now it has been admitted that the Chechens had not been shooting hostages.

Russian president Putin was quick to claim this as another attack by the "international terror network". His actions have been endorsed by George Bush and Tony Blair.
The hostage takers from Chechnya had close links to the Wahhabiite Islamist sect. Many of them were young women, including several widows of Chechens who had been killed by Russian troops in the two recent wars. But their 'fundamentalism' had a particular Russian tinge - hostages reported seeing the Chechens drinking.

The demands of the Chechens were blunt - end the war in Chechnya. Those world leaders who rushed to support Putin forget that it is the war in Chechnya that has caused the death of tens of thousands of Chechens and Russian soldiers.

The world has turned a blind eye to the atrocities committed by the Russian troops in Chechnya, which include the shooting without trial of any males in the fighting age group and the rape and murder of women. It is the very brutality of Putin's war that has caused the desperation of the Chechens to carry out terrorist acts.

What is significant however is that the crisis has brought Chechnya back onto the political agenda. For the first time for a long while, there have been burning political discussions about the question with many saying it was time to stop the war.

Despite Putin's almost tearful broadcast apologising to the relatives of those that died, his representatives on the scene were widely viewed as inflexible and insensitive. Members of his administration were noticeable by their absence from the scene, leaving the negotiations in the hands of opposition politicians and actors from the theatre.

Worse was the behaviour of the authorities after the storming. All the hostages were whisked off to hospital while the authorities refused point blank to admit that gas had been used. Doctors were left to treat the patients not knowing what chemical agent they were dealing with and relatives were in many cases refused permission to visit.

Officials underestimated the number of casualties only to be contradicted by the health authorities, who by Sunday afternoon had upped the number of dead to 118 hostages and 50 Chechens, with at least 50 still in intensive care.

Distressed relatives were left outside the hospitals in pouring rain for two days trying to seek information about missing people.

The real number of deaths caused by the use of this "special substance" will probably never be known. Now criticism is growing that such a gas could have been used.

End the war

Could this siege have been ended peacefully? In 1995 the first Chechen war was eventually brought to an end after Chechens seized a hospital in Budyenovsk, in Southern Russia. The then Prime Minister, Viktor Cher-nomyrdin, negotiated on live television with the hostage takers, agreeing to call a ceasefire and the withdrawal of troops.

The only hope for bringing this siege to a peaceful end would have been for the government to once again announce withdrawal of troops. But this would have been too big a blow to the prestige of Putin.

After the first war (1994-96), capitalism in Russia and of course in Chechnya was unable to solve any of the root causes of this conflict. Money earmarked for reconstruction by the government was robbed by government officials. Chechens who had fought in the first war were left jobless and turned to banditry and kidnapping. Russian leaders again turned to military means to try and subdue the small mountain republic.

Clearly, alongside struggling to end this war, it is necessary to create a genuine political alternative capable of opposing Putin and capitalism itself, i.e. a workers' party with a socialist programme capable of fighting for workers' rights throughout Russia and guaranteeing self-determination to Chechnya and any other republic that wishes it. Only then will it be possible to begin healing the wounds caused by the wars launched by the new capitalist Russia.

Gang of four

George Bush, Tony Blair, Jaques Chirac and many other capitalist world leaders have all congratulated Putin for his resolution of the hostage crisis. They have justified the carnage caused by the Russian special forces using deadly gas as part of Russia's 'war against terrorism'.

After the 11 September al-Qa'ida attacks on the US, Western imperialism has given carte blanche to the ongoing Russian state terror in Chechnya, with barely a word of criticism.

"Non-lethal"deadly nerve gas

According to media reports, the gas used in the Moscow theatre siege is similar to a nerve agent (called BZ) developed by the US military in the 1970s. The agent affects the brain, paralysing its functions - hence the victims' memory loss. Those people in poor health, the elderly and very young would suffer the most from inhaling the gas. Clearly its concentration was enough to kill over one hundred people.

Apparently this deadly gas has never been used before outside of the defence laboratories in Russia and the US. Yet both powers are developing such agents because - due to a loophole in the international chemical weapons convention - such gases are classified as "non-lethal".

A secret state

The Russian authorities use of lethal gas and their subsequent refusal to tell doctors treating the victims the chemical composition of it is an outrage. It underlines that the Federal Security Service (FSB), following the restoration of capitalism, has changed little of its secretive and sinister character from the dark days of its Stalinist predecessor, the KGB. Putin, a former head of the KGB, is now introducing even more draconian police powers against 'terrorism'.

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Chechnya: A History Of Oppression

from The Socialist

THE LONG suffering Chechens have seen thousands killed and wounded and hundreds of thousands made refugees in two bloody wars with Russia in the last decade.

Like Stalin, who deported the whole Chechen nation to Kazakhstan in 1941, Russia's new rulers in their 'war on terrorism' are punishing all Chechens by turning their former republic into a prison camp.

Terrorist acts although associated with 'Islamic fundamentalism' are primarily the consequence of the restoration of capitalism in general and the Russian government's violent repression of Chechnya's rights in particular.

As capitalism began to be restored in Russia, Chechnya was granted tax-free status so that Russia's politicians and businessmen could launder the money they were robbing from the state.

Not prepared to lose control of this goldmine, or the oil pipelines through the republic, president Boris Yeltsin sent troops to put down demonstrations demanding independence in 1991. They were unsuccessful but Russia refused to grant Chechnya independence and in 1994 invaded the tiny republic.

The 1994-96 war resulted in a humiliating defeat for the Russian army which was forced to withdraw. This first war left over 40,000 people dead and the country devastated.

In October 1999 Yeltsin and his premier Vladimir Putin, in response to alleged Chechen bomb attacks in Moscow and other cities, sent Russian tanks back in to Chechnya. As president, Putin formally annexed Chechnya in May 2000.

However, Russia's demoralised conscript army, run by a corrupt military elite, has failed to pacify Chechnya, instead suffering military setbacks.

The conflict has also spilled over into neighbouring countries such as Dagestan, where Chechen guerrillas have been aiding armed Islamist groups and in Ingushetia and Georgia, the latter country coming under Russian air attacks last August.

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Latin America Radicalises

by Tony Saunois

A NEW wave of radicalisation is sweeping through the Latin American continent. It is reflected in increased support for radical populist movements in many countries and the landslide victory of the Workers' Party (PT) candidate, Luiz Inacio 'Lula' da Silva, in Brazil's presidential election.

The strengthening of radical populist movements follows a series of right-wing capitalist governments which carried through sweeping privatisation and opened the national economies to increased domination and control by Western multinationals during the 1990s. These policies had a devastating effect on the mass of the population. Poverty levels and misery increased alongside a widening of the gap between rich and poor. The present radicalisation is a sign that the working class and others exploited by capitalism are beginning to seek an alternative to neo-liberalism and capitalism.

A recent electoral breakthrough of this populist revival took place in Ecuador where Lucio Guitiérrez took the lead in the first round of the presidential elections. Guitiérrez, a retired army officer who is sympathetic to and comparable with Hugo Chávez in Venezuela, led the January 21 Patriotic Society, and participated in the mass uprising in January 2000 against the former president Jamil Mahuad. Like Chávez, Guitiérrez is resting overwhelmingly on the poor and most downtrodden, including indigenous peoples. His opponent in the second round is Álvaro Noboa, a multi-millionaire who owns more than 100 companies in Ecuador. These developments have an added significance in that they follow the dollarisation of the economy which has failed to resolve the social and economic instability. Between 1999 and 2001, 400,000 Ecuadorians left the country - out of a population of 13 million.

Earlier this year in Bolivia, Evo Morales, a peasant farmer backed by the working class and indigenous peasants, narrowly missed being elected president. Throughout the continent there is a revolt against the neo-liberal polices of the 1990s, the market and the establishment political parties. All parties and institutions associated with capitalism and the ruling elite have seen an erosion of their support. In the recent elections in Ecuador while Guitiérrez took 20.3% of the vote in the first round, Xavier Neira, the candidate of the Partido Social Cristiano (PSC), the country's main political party, took a mere 12.2% of the vote and came in a poor fifth! The same process took place in Venezuela when Chávez won the presidency in 1998 and the vote for traditional parties of the ruling class collapsed. The same loss of trust and confidence was seen in Argentina following the uprisings which took place during December 2001 and January 2002.

A recent poll organised by the Santiago-based Latinobarometro, reflected the new mood. It is shown in the contempt towards the established pro-capitalist parties. In Argentina in 1996, 19% indicated that they had 'a lot' or 'some' confidence and trust in the political parties. In 2002 this had fallen to 0%! In Ecuador it fell from 18% to about 8%. Paraguay, which has recently experienced mass riots against privatization, saw the steepest decline from 38% to 6%. The only exception to this trend is Venezuela - reflecting the highly-polarised and politicised situation there - where those responding positively to political parties rose from 10% to 20%.

The radicalisation was also reflected in attitudes towards the economy. When compared to 1998 (the last time the poll was taken), support for keeping the state out of the economy had dramatically fallen in all countries. When asked if the economy should be left to the private sector without state intervention, now 39% agreed in Brazil, 38% in Argentina, 36% in Venezuela, and 41% in Ecuador (from 55% in 1998).

Behind the growth in support for radical populist movements are demands for far-reaching change by the working class and the mass of the population. The victory of Lula in Brazil reflects this process. Lula has adopted a more 'moderate' stance, trying to reassure the ruling class by promising to honour existing agreements with the international financial markets and banks. Despite this 'PT-lite' stance, his victory will arouse massive enthusiasm and expectations amongst the working class.

These developments have alarmed US imperialism. Constantine Menges, an official in Reagan's administration, said the process was "tantamount to the creation of a new 'axis of evil'."

The real threat to the interests of capitalism, however, is the mass movement of the working class and oppressed which is behind such populist figures as Chávez and Guitiérrez and, now, Lula's victory. They have denounced neo-liberalism and the grotesque wealth, corruption and power of the ruling elites in their respective countries. In the case of Chávez, some of the privileges of the corrupt capitalist politicians have been curbed and some reforms that benefit the poor have been implemented. More than 3,000 new schools which distribute free school meals have been built since Chávez came to power and state universities are now free for students. Such reforms have won the enthusiastic backing of the urban poor and oppressed. The reactionary campaign against him by the ruling class and US imperialism has also helped maintain this support.

However, these populist movements have not attempted to break from capitalism and carry through a socialist transformation of society. They have not even gone so far as to nationalise sections of the economy. The deepening crisis of world capitalism and the rising pressure of the working class, however, may drive such regimes as Chávez in a more radical direction. Significant blows could be struck against the interests of capitalism, and in particular US imperialism - for example, the nationalisation of important sectors of the economy or defaulting on foreign debt.

So long as the regimes remain with capitalism, however, and do not present a socialist alternative, they will stay prisoners of the market system. Chávez does not mobilise the mass of the working class and oppressed to carry through a socialist transformation of society. Nor does he appeal to the masses of Latin America and the United States to overthrow capitalism and imperialism. As a result, his regime is facing an impasse.
The ruling class has carried through a policy of sabotage and destabilisation and, in April, attempted to overthrow Chávez with the backing of the USA. This was defeated because of a spontaneous movement from the shanty towns and armed forces rank-and-file, along with some junior officers, rallying to his defence.

However, the ruling class is mobilising a massive campaign against him, fuelled by his inability to resolve the economic crisis which exists because he will not break from capitalism. This has resulted in a massive polarisation in society. In October, one million people took to the streets demanding that Chávez resign. One week later, another million took to the streets in his support! The polarisation is along class lines. The recent 'general strike' called by the employers and the corrupt trade union federation, CTV, reflected this. The Spanish daily El País reported: "In the popular zones few companies closed their doors and remained open… in the petrol sector, the administration and the offices in Caracas were paralysed but extraction, refinery and transport were unaffected". (22 October)

How long this deadlock can last is an open question but it cannot continue indefinitely. The economic crisis is slashing the standard of living of the middle class on a daily basis. In the first quarter of this year, $10 billion flooded out of Venezuela, the equivalent of 7% of gross domestic product. This has given the right-wing reactionary forces the opportunity to build a powerful opposition to Chávez.

This impasse is also a warning to Lula's new administration. The mass of workers will have tremendous expectations and illusions in the first ever PT-dominated government. However, the swing to the right by Lula and the party's leadership could result in these hopes being dashed. Sections of the ruling class have swung behind him, intent on shackling the PT government to the commitments made during the campaign not to adopt radical measures and to support pro-capitalist policies. Nonetheless, the economic crisis and workers' struggles will put the government under enormous pressure. It is certain to provoke a political crisis at some point. Despite Lula's promises to the ruling class, he could be compelled by the pressure of mass movements to adopt measures which conflict with the short-term and strategic interests of the capitalists and US imperialism.

As the experience of Venezuela and other recent developments show, there is a need to build an independent working class and socialist alternative. It needs to be based on a programme to break with capitalism and establish workers' and peasants' governments which would begin to build socialism, based on the nationalisation of the major monopolies, banks and financial institutions and the introduction of a democratic plan of production. The emergence of a new wave of radical populist movements represents the first steps by the masses of Latin America to search for a socialist alternative which is now an urgent necessity.

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Bush's 'War on Terror' After Bali

Committe for a Workers' International (CWI) statement

THE BLOODY BOMBING of the Sari Club in Kuta Beach, Bali, on 12 October provoked shock and outrage around the world, especially in Australia, home of most of the victims. Nearly 200 died and at least 300 were injured. This was a completely indiscriminate attack against young people, from Australia and Europe, clubbing while holidaying in Bali. Some local staff and bystanders were also killed or injured. We condemn this indiscriminate bombing, which plays into the hands of imperialism and local reactionary forces.

The attack was probably the work of a right-wing Islamic group, possibly linked with the al-Qa'ida network. Strong suspicions have also been raised about the involvement of Islamic elements of the Indonesian army. Such is the intense anger against imperialism throughout the neo-colonial lands, however, that many are convinced that the CIA was behind the Bali and other attacks, seeking to create a pretext for US intervention. But Bali will complicate the situation for the US, cutting across its immediate strategic priority - military intervention against Iraq.

There are several reasons why the Sari Club should have been targeted. In Indonesia's sprawling archipelago of 17,000 islands (6,000 inhabited), Bali is remote from the centre of state power. Moreover, a majority of the island's population are Hindu. The Sari Club itself, with young men and women dancing together and drinking alcohol, is no doubt seen by right-wing Islamists as a symbol of 'Western decadence', for them a 'legitimate target'. Those behind the bombing undoubtedly knew that most of their victims would be from Australia, whose government is closely associated with US imperialism. Australian forces, for instance, went into East Timor before independence, and big Australian firms now dominate its economy. After 11 September, Australia's right-wing premier, John Howard, fervently aligned himself with Bush's 'war against terrorism', sending special forces to operate alongside the US military in Afghanistan. It is evidently of no consequence to the bombers that most of the clubbers at the Sari come from working-class families and bear no responsibility for the policies of the Howard government or Australia's regional imperialism.

Right-wing Islamic groups like Jamaah Islamiya and others linked to the al-Qa'ida network are driven by reactionary theocratic aims. They seek to establish states ruled under religious principles that prevailed in the sixth and seventh centuries when Muhammad and his descendents ruled in the Arabian peninsula. Right-wing political Islam has gained in strength, however, not for theological but for social reasons - on account of the catastrophic effects of globalisation - intensified capitalist exploitation of the semi-developed and poor neo-colonial countries. Traditional forms of social life have been thrown into a vortex of change producing extreme inequalities of wealth and increased poverty. Bali itself illustrates the process. Near to Kuta Beach whole villages are employed at a few dollars a month to make luxury jewellery and designer silk garments which are sold at fabulous prices in Europe and America. Land that once made Bali self-sufficient in rice has been increasingly taken over for commercial development linked to the tourist trade. A collapse of tourism as a result of the bombing will have a devastating effect.

Support for right-wing Islamic groups has also been powerfully fuelled by increasing imperialist domination of the world economy and military intervention. Muslims in particular will not forget the deaths of innocent Afghans when US war planes dropped bombs on guests at a wedding party. Well over 3,000 Afghan civilians have been killed since the US intervened in Afghanistan. There is also burning anger at the support of the US and other Western powers for the Israeli state's aggressive policy towards the Palestinian people.

Neither right-wing Islamic theology nor terrorist methods offer a way forward. On the contrary, they will provoke an even more brutal reaction from imperialism and intensified repression by national rulers. Terrorist attacks also provoke further communal struggle. In Bali, for instance, there could be a violent reaction by Hindu groups against Muslim immigrants to the island whether or not they have any sympathy for Jamaah Islamiah or other groups. Terrorist actions carried out by small groups, funded by sections of the local ruling class and wealthy sponsors in Saudi Arabia, enormously complicate the task of mobilising and organising a mass movement of workers and poor peasants to fight against the ruling class of capitalists and landlords, and against their imperialist backers.

The promise of a new Mecca, a blessed social order modelled on the prophet Mohammed's seventh-century state, is a dangerous mirage. The masses of Indonesia and the whole neo-colonial world need progressive change, not a return to the past. The 'earthly paradise' will be achieved only through socialist transformation, the end of landlordism and capitalism, the establishment of a planned economy and workers' democracy. Mass working-class forces are required, not conspiratorial groups. The weapon required is mass struggle, not indiscriminate terrorist outrages. The appeal must be to international solidarity, not the fomentation of religious, national and communal differences.

Australia's own 9/11

For Australia, the Sari Club bomb is their '11 September'. This was the country's worst peacetime atrocity. Though Australian forces were killed in overseas wars (62,000 in world war one, 40,000 in world war two, 339 in the Korean war and 520 in Vietnam), Australians had generally come to see themselves as blissfully remote from international conflicts. Bali, only four hours flight from Perth in Western Australia, was seen as the 'safe abroad', a cheap holiday paradise, especially for young people. With a population of 20 million, there is hardly an area in Australia that has not been devastated by the deaths and casualties at Kuta Beach.

People are angry that John Howard's government issued no warning to Australians travelling to Bali, despite the fact that the US State Department had issued an advisory notice to Americans. Howard admitted that there was a warning but said that it was too 'general' to warrant any action.

But the bloody event has not had the same effect as 9/11 in the US. Prime minister Howard and his right-wing government have not been automatically strengthened by anger at the Bali outrage. Many people are asking the obvious question: are Australians paying the price for Howard's hard-line support for Bush's policy on Afghanistan and Iraq? His foreign minister, Alexander Downer, dismissed opponents of an attack on Iraq as 'fools'. "Get the message", responded a letter writer to the Sydney Morning Herald. "We don't want you to suck up to George Bush. We don't want your phoney oil war with Iraq". (15 October)

Even after the bombing, an anti-war demonstration went ahead in Melbourne, with 35,000 participating. Demonstrators observed a minute's silence for the Bali victims, but their opposition to the war was in no way muted. The consciousness of many sections of Australian workers is different from the US, reflecting the greater weight of the labour movement.

Indonesian instability

The Bali bombing will unavoidably plunge Indonesia into a new phase of crisis. President Megawati Sukarnoputri has been under intense pressure from the US for some time to clamp down on rightwing Islamic parties such as Jemaah Islamiah and paramilitary groups like Laskar Jihad, which are linked to terrorist groups throughout South-East Asia and part of the al-Qa'ida network. Megawati, however, resisted taking action. This was partly because, as a minority party in parliament, Megawati's Indonesian Democratic Party of Struggle, a bourgeois-nationalist formation, depends on the acquiescence of the Islamic parties, particularly vice-president Hamzah Haz's United Development Party, the country's main Muslim political group.

But Megawati has also avoided a confrontation with the right-wing Islamic groups because they are still covertly backed by the military, which is still a powerful force in Indonesia. Jemaah Islamiah, for instance, originated under the dictator Suharto as an alliance between the military and right-wing Islamic forces. Since Suharto's overthrow in 1998, the military has continued to give undercover support to groupings like Laskar Jihad, who have played a murderous role in launching communal struggle against Christian and other minorities in the Moluccas, in Aceh, Papua, and other parts of the archipelago. A conspiratorial web links reactionary sections of the army with paramilitary Islamic groups.

Since being elected president in 1999, Megawati has only demonstrated her inability to resolve any of Indonesia's deep problems. The economy never recovered from the 1997 South-East Asian crisis, and the Bali bombing will undoubtedly hit foreign investment and tourism. Elections provide a flimsy cover for the continuation of state-sponsored repression and corruption. Appealing to nationalism herself, Megawati cannot resolve the continuing conflict or solve the explosive national question. The emergency powers adopted by decree on 12 October will strengthen the military, the very force responsible for decades of violent state terror. Bush was quick to denounce the violence at Kuta Beach, but a succession of US presidents were silent about decades of violent repression in East Timor.

Suharto installed a dictatorship, with US support, through a bloody counter-revolution in 1965-67 that massacred up to a million supporters of the Indonesian Communist Party (PKI). Regrettably, the leaders of the PKI prepared the way for this defeat, particularly through their mistaken policy of support for supposedly 'progressive' nationalists led by the bonapartist Sukarno, promoting the illusion that there could be a path to an 'anti-imperialist, democratic national revolution' without the overthrow of the capitalists and landlords. The crisis-torn state of the country today is the legacy of that counter-revolution. Neither the nationalists nor the right-wing Islamic parties have any answers. The problems of the workers and the poor farmers, together with national conflicts, can only be solved by a mass movement of the working class for a socialist change of society.

Al-Qa'ida regrouping

Bali, though the most devastating attack, was only one of a series since 11 September 2001 linked to Islamic groups. In Pakistan, 14 people, including eleven French submarine engineers, were killed in a suicide car-bomb attack on a bus in Karachi last May. There was an attack in June on the US consulate in Karachi (killing twelve Pakistanis) and several attacks on Christian churches (in Islamabad, Karachi and Muree).

On 6 October a small boat caused an explosion on a French oil tanker off Yemen (killing one crewman). In Kuwait, on 8 October, two gunmen attacked US forces, killing one marine. These and other attacks suggest that elements of al-Qa'ida have regrouped and changed their tactics. No longer an organisation with a central core as before the overthrow of the Taliban regime, it is operating as a widespread network, mounting local, small-scale operations.

Al-Qa'ida fighters who escaped from Afghanistan have in many cases returned to their home or neighbouring countries, where they are working with local right-wing Islamic groups. They have common objectives: attack Americans and their allies; attack large economic targets symbolic of capitalism or 'Western decadence'; attack pro-Western rulers and non-Muslim minorities (Christians in Pakistan and Indonesia, Jews in Tunisia).

A US military attack on Iraq would multiply the number of attacks. Unfortunately, there would be many more Balis. As a result of Bush's 'war against terrorism', moreover, the US itself would be more vulnerable to terrorist attack. The director of the CIA, George Tenet, recently told a congressional committee (18 October) that "the threat environment we find ourselves in today is as bad as it was last summer, the summer before September 11. It is serious. They [al-Qa'ida] have reconstituted, they are coming after us, they want to execute attacks". The CIA director, commented the New York Times (21 October), was admitting that "in effect, all the national effort to combat al-Qa'ida over the last year had left the country in as much danger of internal attack as before the destruction of the World Trade Center".

War on Iraq

After five weeks of wrangling (as we go to press), the UN Security Council is still deadlocked over the US-British proposal for a single resolution on Iraq. Bush's enforced detour via the UN has (as we predicted) created serious complications for the US. Russia and France, two permanent members of the Security Council with the power of veto, reject the US's new draft which warns Iraq of "serious consequences" for its "material breach" of existing resolutions. "They [the US] are trying to smuggle in language that has already been rejected", commented one French diplomat. Bush, moreover, continues to threaten the Security Council itself with "serious consequences" if they do not support the US line. "I believe", Bush said (25 October), "the free world, if we make up our mind to, can disarm this man [Saddam] peacefully. But if not, we have the will and the desire, as do other nations, to disarm Saddam".

The White House has been sending out apparently contradictory signals. The US national security advisor, Condoleezza Rice, reiterated Bush's comment that if Saddam complied with all US demands that might equate to the 'regime change' sought by the US, allowing Saddam to remain in office. Yet the White House spokesman, Ari Fleischer (who previously openly appealed to Iraqi officers to assassinate Saddam), said that the notion of such total compliance was 'the mother of all hypotheticals'. In reality, the US is pressing for conditions that would be impossible for Iraq to meet to the US's satisfaction - and in any case they are not prepared to take 'yes' for an answer. Paradoxically, it is now Saddam who is pressing for weapons inspections and the US that is resisting. In a surprise move Saddam released all political prisoners.

This seems partly to disarm US criticism and partly to appease the regime in Iran, with a predominantly Shia population, as most of the prisoners were Shia.
What do the mixed signals from the US administration mean? On one level they are undoubtedly a diplomatic ploy to try to win Security Council support for a US military strike against Iraq. Despite his deep impatience with the Security Council, Bush desperately needs UN legitimacy for international and domestic political reasons. Opinion polls show that a majority of those in the US who support war believe that the US should act with UN support. Even though Bush received decisive support from Congress, which meekly handed to the president its war-making powers, Bush has been forced to promise that he will work through the United Nations.

Even in his most belligerent speeches Bush has carefully stated that war may not be necessary and that 'regime change' may be achieved peacefully. In reality, these are political 'escape clauses' which reflect the serious obstacles in the way of a pre-emptive US strike against Iraq. A key factor will be the outcome of the mid-term elections on 5 November. Because of the cowardly failure of the Democratic party leaders to challenge Bush on Iraq, the deep mood of unease among broad layers of workers and the middle class at the prospect of war and further terrorist attacks in the US has not crystallised into a firm mood of opposition (although there has been a growing wave of anti-war demonstrations). But it is far from certain that Bush's tactic of presenting himself as a 'war president' and playing the patriotic loyalty card will produce Republican control of the Senate and a bigger majority in the House of Representatives. Anger is also growing among workers at the effects of the economic downturn and business scandals.

Apart from difficulties at the UN, the Bush leadership faces growing complications internationally. The French government's opposition to the US is privately supported by many governments who dare not openly defy the US for fear of the consequences. It is not just an issue of superpower bullying, but fear of the catastrophic long-term consequences of US military intervention in the Gulf. This has been reinforced by revelations of US plans to install a US military government in Iraq. That would destabilise the whole region, and aggravate the problem of international terrorist attacks. France also fears a flood of refugees from Iraq and surrounding areas, and the impact of US intervention in France itself (now home to five to six million Muslims and some 700,000 Jews). Moreover, the Chirac-Raffarin government is feeling the pressure of a strengthening anti-war movement, with a demonstration of over 100,000 in Paris on 4 October.

Russia is also holding out against the US's draft UN resolution, demanding (according to some reports) a guarantee from the US that it will cover Iraq's $7 billion debts to Russia as the price for support or at least abstention in the Security Council. However, the seizure of a Moscow theatre with over 700 hostages (and over 70 dead as special forces stormed in), which pulled Putin away from UN negotiations, underlines the unpredictable and horrendous threat posed by terrorist attacks. The Russian state's prolonged attempt to dominate Chechnya by military force has completely failed to solve the problem.

The Bush leadership has also been shaken by the North Korean regime's open confession that it possesses nuclear bombs and missiles capable of delivering them. This, of course, has long been an open secret. But a public admission from North Korea poses the question of how the US should react, given that Bush designated North Korea part of the 'axis of evil'. The US has indicated (with the approval of South Korea, Japan and other regional powers) that it will seek a diplomatic solution to the problem. But if the US is prepared to deploy diplomacy in relation to a state with a nuclear arsenal, why is it threatening military invasion and occupation against Iraq, a state that has no nuclear weapons? Bush's claims that Iraq could be only months away from producing effective nuclear weapons has been shown to be completely fanciful. Only if Iraq acquired significant amounts of plutonium or weapons-grade uranium or the sophisticated processing equipment required to produce it, could Iraq develop deployable nuclear weapons.

Meanwhile, the US's key ally in Asia, the Pakistan military dictator Musharraf, suffered a setback in the rigged elections he called in an effort to legitimise the effective continuation of his military rule. Making gains in North-West Frontier and Baluchistan, the right-wing Islamic parties now hold the balance of power in Pakistan's parliament. This presages further political upheavals in Pakistan.

Big demonstrations around the world are a foretaste of the massive anti-war movement that will develop if the US launches a military attack on Iraq. In the US on 8 October tens of thousands demonstrated opposition to a war against Iraq, with over 20,000 in Central Park, New York, 10,000 outside the Federal Building in Los Angeles, and rallies in many other cities throughout the country. The anti-war demonstration in London on 28 September was the biggest anti-war demonstration ever to take place in Britain, with around 400,000 participating. Huge demonstrations have taken place throughout Europe.

The Bush leadership still seems set on a course of military intervention in Iraq. US and British air attacks have been stepped up since the summer. Huge military forces are being mobilised, and plans are being drawn up for US military occupation. Given the serious complications facing Bush internationally and at home, however, it would be a mistake to conclude that war is inevitable. It still seems likely, but nothing is more complicated or unpredictable than war or the path to war.

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