Subject to the Nature of the International Economy?

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Subject to the Nature of the International Economy?

Business Failures Indicate extent of Economic Crisis

GATS: Seminar on how the General Agreement on Trade in Services threatens public services and democracy

FOR A democratic election for a democratic Turkey

At the weekend, in Spennymore, right next door to the Prime Minister’s constituency, it was announced that around 950 workers are going to lose their jobs at Black and Decker as it moves its operations to Eastern Europe.

Tony Blair was asked at a press conference what sort of future there is for manufacturing in the north east, and what he is going to do to stop the "short-termism" of firms that come from abroad, get all the investment and the grants and then pull out when the economic circumstances change.

His reply was that, of course, it is tragic for the workforce. But, according to him, the world in which we live is one in which it is simply not honest to pretend to people that these changes don't happen. We went through it with Fujitsu in the north-east, we went through it with Siemens, Tony Blair said. But, he said, "this is the nature, it is one of the reasons why it is so important that we play a key part in the Europe of the future, this is the nature I am afraid of the international economy, and it happens not just in Britain but in any other country in Europe, in America, in Japan, in any part of the world."

For Tony Blair, this is the bottom line, despite wringing his hands and saying that "we will work very, very closely with them to make sure they can get other employment and to make sure that they are properly looked after".

Tony Blair regards the capitalist economy, with its motive of maximum capitalist profit, its inward and outward investment with no concern for the national economy, with its relations of exploiter and exploited, with its parasitism and crisis, as a natural phenomenon. This is his "international economy", the economy of the "international community". Workers can hope for no more than to be subject to the vagaries of this natural phenomenon, according to the Prime Minister. Even "making sure that they are properly looked after" does not include guaranteeing the workers a livelihood.

The workers have to organise themselves to put a stop to this situation. They must affirm their rights, as producers of the wealth of the nation, and take control of the economy so that its motive is changed to fulfilling the needs of the people. Then the tragedy of the economy as merely a phenomenon of nature will be ended.

Commentary by West Midlands Correspondent

As the capitalist crisis intensifies, company bankruptcies are seen as a good indicator of the extent of the crisis in the economy.

Economy consultants, Dun and Bradstreet have issued a report showing that 33,000 British businesses are to close this year. Bankruptcies and liquidations were at their highest level for three years. The nine-month tally, from January to September, is 7% up on 2001.The brunt of the slowdown has been felt in the West Midlands, a traditional area for manufacture, with 15.8% more firms collapsing than in 2001. The rapid rate of decline has implications for the speed of approach to an all round recession in Britain.

The latest example of company collapse in the West Midlands was at Enterprise Jewellery in Bridgnorth, Shropshire, which has closed with 200 workers declared redundant this week. Talks between receivers, local government and regional development officials have been taking place to hear about the demise of the company. This one instance shows the desperate concern about what is taking place where local community leaders are floundering as to what is to be done and is a commonplace occurrence these days.

Economic conditions in England, Scotland and Wales are worsening. This quarter alone, there were 11,088 national failures, up 5.5% on the same period last year – 993 collapsed in the West Midlands, UK company liquidations have increased by nearly a third compared to the same period last year. Figures for the South West region of England were up by 11.8%, the South East by 10.3%, Wales 7.6%, the North West of England by 5.8% and London 8.3% (with a 25% increase in smaller business bankruptcies).

Large companies have been hit harder by the crisis, rising by 11.9% from 12,477 to 13,966. Small business bankruptcies were up 4.1% from 18,191 to 18, 940.

Prospects of jobs gloom in the car industry were announced this week by Ford. Two hundred workers are to be made redundant at Jaguar and Land Rover, and 215 temporary assembly staff are not having their contracts renewed. News of the latest blow comes hard on the heels of the announcement of 400 white-collar jobs to go from each business as part of the redundancy scheme. There is a cutback of 150 jobs at Halewood on Merseyside, producing the X-type. Landrover admitted that 95 people are to go from the Freelander line at Lode Lane, Solihull.

Birmingham's IMI has to sell off its copper tubes business to the German KM Europa Metal and is the beginning of the end for IMI's historic metal bashing sector.

Another big household name, Black and Decker, the British tool firm, is to axe 950 jobs and transfer work to the Czech Republic. The company is attempting to escape the recession by exporting capital to where it views labour as cheaper. Around 550 production and office jobs are to be cut from the factory at Spennymoor, County Durham, and 400 temporary workers are also to be sacked. The company said that it will have completed the transfer of assembly and packaging operators by the end of next year.

During the crisis the capitalists will try to shift the burden onto the backs of the workers. At a time of impending war with Iraq, the government senses an opportunity to shift the attention of workers away from the problems it faces caused by crisis. Exploitation, export of capital and militarisation of the economy along with globalisation are part of the capitalist remedy but are by no means the only direction for the economy to take. The real solution lies in the alternative strategy, which puts the interests of the workers first and relies on planning the way out of the crisis exemplified by booms and slumps and anarchy of production. The crisis is so profound that speculation, robbery and militarisation are the means by which the capitalists appropriate the bulk of the wealth produced by working people. Workers must build the workers’ opposition so as to be in a position to implement the alternative and take hold of what belongs to them.

8 October, 2002: 1400 - 1700 (registration 1330)

Quaker International Centre, 1 - 3 Byng Place, WC1

The GATS (the General Agreement on Trade in Services of the World Trade Organisation) was set up to liberalise services, globally, and poses a serious threat to public services and the government's right to regulate. The GATS came into being with the birth of the WTO in 1995 and is currently being renegotiated.

Threats to public services: Although the government claims that public services are exempt from GATS liberalisation, in the wording of the Agreement, only services provided in the exercise of governmental authority… provided neither on a commercial basis nor in competition with other service suppliers are actually exempt. Because of the "modernisation" of public services by New Labour, exemption will no longer apply in many cases. (An example is given in the paper by Allyson Pollock and David Price in the British Medical Journal, Volume 325, 10 August 2002, showing how extending patient choice will bring NHS services under GATS rules).

With GATS liberalisation, further privatisation of public services is inevitable, and effectively irreversible.

Threats to the right of governments to regulate: As well as the provision of public services, another function of democratic government is to regulate in the public interest. This too is under threat from the GATS. Under the Agreement, member countries undertake to bring about the "progressive liberalisation" of trade in services through entering successive rounds of negotiations. Progressive liberalisation requires a restructuring of regulations to make them "least trade restrictive". In services, these regulations (laws, rules, protocols, etc.) are usually established by government (at national, regional or local level), and are often to control price, maintain quality, guarantee access, preserve the environment, and prevent concentration of ownership or to achieve other social goals. What will this mean for different service sectors, or the right to regulate of local government?

Despite its enormous implications, there is very little awareness of the GATS in the UK, therefore the UK GATS Network has organised a seminar to bring together experts on the GATS and those from areas affected by it, to explore the potential effects and to discuss ways of influencing the current renegotiation. The UK government is conducting a consultation on GATS this autumn, and the seminar will provide an opportunity for organisations to discuss their input to the consultation as well as other options for affecting the outcome of the negotiations.

Background to GATS: http://www.foei.org/publications/trade/primer.html

To book a place send name, organisation and contact details to UK GATS Network, 90 The Parkway, Canvey Island, Essex SS8 0AE or email ukgatsnet@yahoo.co.uk

Suggested donation £20 or according to means, payable to UK GATS Network

Programme

1330 - 1400: Registration and coffee

1400 - 1410: Introduction by the chair: Professor Allyson Pollock; Health Policy and Health Services Research Unit, School of Public Policy, University College, London

1410 - 1440: GATS and privatisation of public services; John Hilary, Trade Policy Officer of Save the Children, and author of "The Wrong Model: GATS, trade liberalisation and children's right to health"

1440 - 1510: GATS and the right to regulate; Mike Ashley, Director of Local Government International Bureau, and author of "The General Agreement on Trade in Services (GATS): Possible Implications for Local Government"

1510 - 1530: Refreshments

1530 - 1615: Workshops on the implications of GATS for various sectors, and possible action

1615 - 1700: Final plenary; report back from workshops and summing up by Chair

Intended participants: Those working in policy and campaigns for organisations such as NGOs, trade unions, local authorities, social welfare organisations, professional bodies, women's organisations, government agencies, environmental organisations

Places are limited, so please send your booking in as soon as possible.

WDIE has received the following information and petition about the elections in Turkey from the Day-Mer Turkish and Kurdish Community Centre in London, and we are reprinting it for the information of our readers.

There are parliamentarian elections in Turkey on 3 November 2002. One of the fundamental problems in previous elections was the misconduct that made those elections questionable. Among them were the stealing or disposal of ballot papers, hindrance to the free voting of the electors, repression on some parties and their candidates, etc. In the coming elections we will see the Labour, Peace and Democracy Bloc taking part in the elections under the umbrella of DEHAP (Democratic People’s Party), consisting of HADEP (People’s Democracy Party), EMEP (Party of Labour) and SDP (Socialist Democracy Party). And it did not take long before this bloc has been subjected to repression.

DEHAP opposes misconduct being carried out in the elections, interventions on the free will of the electors, and repression on the candidates.

DEHAP demands the cancellation of all agreements made with the IMF and the World Bank, the institutions that co-ordinate the global attacks of capital, and an end to the repayment of debts. It also demands the re-nationalisation of privatised industries, an end to the attacks on the rights of the working people, and a universal social security system.

DEHAP opposes the war plans of the USA in the Middle East. It demands the withdrawal of the military forces of the USA and of other imperialist powers in the region. It promotes the idea that Turkey’s relations with its neighbours must be based on equality and fraternity.

DEHAP holds up the idea that Kurdish and Turkish peoples and the working people of other ethnic minorities must live together on the basis of equality and fraternity, that the grounds for this must be prepared. It demands a democratic solution to the Kurdish question. It promotes the friendship and fraternity of peoples against all kinds of discrimination and racism that is being provoked amongst peoples. It also promotes the unity and brotherhood of people of different religious beliefs - be it Sunni, Alevite, or others - and proposes a legal safeguarding system for the minority Alevite believers. It demands the repeal of all laws and legislation that hinder the organisation of the workers and labourers, and freedom of thought and conscience. It also demands the trial of torturers, etc. who have committed crimes against the people.

We believe that this bloc, formed against global attacks, social cuts, racism and the war, is a part of those forces who fight against these problems in different countries of Europe, that the strengthening of this bloc will reinforce those who demand a peaceful and just world.

DEHAP’s presence in parliament will contribute to the fraternity of peoples and to the international solidarity of the working people.

We, the undersigned, support this bloc and its demands. We condemn the ban on the right of some DEHAP candidates to stand in the elections, and express our opposition to all kinds of anti-democratic practices on DEHAP. We call upon everyone who is for freedom, democracy and peace to support DEHAP. Your support will also make it possible to conduct the elections in a democratic environment without any misconduct, and to reflect the free will of the electors in the parliament.

For a democratic Turkey we support DEHAP.

Name	Occupation/Position	Address	Signature

c I can take part in the press conference that is to take place in Berlin on 23 October 2002.

Please fax it back to Day-Meron 0207 275 7245 or e-mail to info@daymer.org

by Thursday, 10 October.