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By Jack Johnston

The global financial crisis has not only disturbed the previous course of capitalist economic development but also stalled many of its political projects. An example of this is the process of European Union expansion into the former non-capitalist states in Eastern Europe. While prior to the crisis these economies were enjoying high growth and falling unemployment, many have now been plunged into a severe downturn. This not only threatens their own internal political stability but also shakes the foundations upon which EU enlargement has been built.

The eastern enlargement of the EU, in 2004 and 2007, should be understood within the context of the restoration of capitalism that occurred throughout Eastern Europe from 1989. The economic collapse and social impoverishment, caused by the re-introduction of capitalism, were most severe and prolonged in the countries of the ex-Soviet Union. Yet the Central-Eastern European (CEE) states still suffered huge socio-economic declines. Ten years after the fall of the Berlin Wall, only Poland had crossed its pre-transition level of GDP; the Czech Republic, Hungary, Slovakia and Slovenia were just returning to this level, whilst the Baltic States still had a GDP level 20–40% below that achieved at the end of ‘communism’. Consequently poverty, unemployment and social inequalities all sharply increased, leaving millions of people with a standard of living worse than they had before capitalism was reintroduced.

By Frances Davis

As the extent of the immense devastation and human catastrophe in Haiti continues to unfold, what is clear is that the correct response must be one which both, firstly, deals with the immediate crisis, i.e. to ensure medical assistance, food, shelter and other basic human necessities; and that, secondly, this happens in the context of Haitian self-determination.

What is becoming increasingly alarming in the current situation is that the US response appears to be primarily geared at securing the state, rather than delivering aid. As one aid worker stated among a myriad of news reports depicting this same picture: ‘there are 200 flights going in and out everyday. But most of those are for the US military. The priorities are to secure the country. Ours are to feed.’

The governments of Nicaragua, Venezuela and Bolivia have all expressed concern over a US military take-over.

Reproduced below is Fidel Castro’s ‘reflections’ piece, which can also be found here

The Lessons of Haiti

By Fidel Castro Ruz

January 15, 2010 – Two days ago, at almost six o’clock in the evening Cuban time and when, given its geographical location, night had already fallen in Haiti, television stations began to broadcast the news that a violent earthquake – measuring 7.3 on the Richter scale – had severely struck Port-au-Prince. The seismic phenomenon originated from a tectonic fault located in the sea just 15 kilometres from the Haitian capital, a city where 80% of the population inhabit fragile homes built of adobe and mud.

The news continued almost without interruption for hours. There was no footage, but it was confirmed that many public buildings, hospitals, schools and more solidly constructed facilities were reported collapsed. I have read that an earthquake of the magnitude of 7.3 is equivalent to the energy released by an explosion of 400,000 tons of TNT.

By Steve Wallace

The financial events of 2008–2009 inaugurated not only an economic but a new ideological crisis of capitalism. How deep this crisis will become depends on the development of the economic situation and the intervention of the political left. The character of this crisis, however, can be seen most clearly by placing it in an historical context.

Twenty years ago, in 1989–91, capitalism achieved enormous victories. It overthrew the non-capitalist economies in the USSR and Eastern Europe. The opportunity to achieve this was created by the final failure of the policy of ‘socialism in one country’ inaugurated by Stalin – with its economically utopian attempt to create a fully developed socialist society within the framework of a single state, its introduction of a fully planned economy in a short period by administrative means, and the political repression that followed from such policies.

By Sammy Barker

The relative decline of US imperialism has underpinned the domestic debate about President Obama’s troop surge in Afghanistan.

In his speech to the Corp of Cadets at West Point on 1 December, Obama said: ‘…as we end the war in Iraq and transition to Afghan responsibility, we must rebuild our strength here at home. Our prosperity provides a foundation for our power. It pays for our military. It underwrites our diplomacy. It taps the potential of our people, and allows investment in new industry. And it allows us to compete in this century as successfully as we did in the last. That is why our troop commitment in Afghanistan cannot be open-ended because the nation that I am most interested in building is our own.’

This drew a fierce response from the Wall Street Journal, which supports the surge as a necessary expression of power, not as an unfortunate diversion from its exercise at home:

By Stephen MacAvoy

The narrowing of the Tory lead in the opinion polls over recent months underlines that the outcome of the next election is not certain. The political implications are clear: a shift by Labour to policies that motivate the overwhelming majority of the population threatened by the Tories’ planned harsh economic policies could prevent a Conservative government.

Despite the backdrop of a deep economic downturn and strong backing from most of the press amongst other factors, the Conservatives are still only polling on average at around 40 per cent (see UK Polling Report 28 December).