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From The Socialist newspaper, 21 January 2009

Russia and Eastern Europe in the 1990s

Capitalism kills, concludes study of privatisation era

"SHOCK THERAPY sell-offs blamed for one million deaths" was the stunning headline in the Financial Times of 15 January. Research into the deaths of three million men of working age in the 'former communist countries' of Eastern Europe in the early 1990s was being published in the medical journal, The Lancet.

Clare Doyle

It had found that "at least one third were victims of mass privatisation, which led to widespread unemployment and social disruption". The paper continued: "The study adds to a growing body of research... demonstrating how far the economic transition led to widespread suffering through death and physical and mental illness".

I lived in Russia at the time, working for the Committee for a Workers' International (to which the Socialist Party is affiliated) and strenuously trying to warn workers and young people against the 'voucherisation/privatisation' trick.

In a huge propaganda campaign, the government aimed to make workers feel they were going to have a real stake in their enterprises. They had suffered decades of state ownership with no workers' control and management and the stultifying one-party dictatorship of Stalinism.

Privatisation looked like a better bet. But, two years ensued in which, as the study mentions, at least one quarter of state factories were privatised (one-third by 1993), inflation was reaching Latin American proportions, and unemployment, unknown in the planned economy, hit millions of workers who received no benefits. The president, Boris Yeltsin, showed himself to be a new dictator and the economy collapsed by 50%. Of course it killed people!

Alcoholism and poor diet have been historical problems, but, as the report also confirms, the stress of the sudden destruction of everything that had been taken as given before, was a nightmare that was bound to take its toll on the working class in the most horrific of ways. Even the vodka sold on the street was adulterated and deadly.

Oligarchs

The people who won out from this process, driving the Russian working class into misery, were a few well-placed party hacks and cronies of the president who grabbed the factories, mines, steelworks, oil and gas concerns to accumulate vast fortunes.

Sometimes it was through buying up vouchers from cash-hungry workers for a few roubles each, sometimes through setting up banks and sometimes through sheer gangsterism. It involved not a few daylight killings - of rivals, politicians and journalists - and still does.

Oligarchs who got on the wrong side of the Kremlin, like Khordokovsky and Berezovsky ended up in jail or exile. Some like British politicians' friend Derepaska, or Potanin or Prokhorov ended up in Putin's court camarilla [clique]. Others, like Abramovich, can hold high office in Siberia and spend vast sums on football teams in England!

Most galling in a week when this report of mass human suffering and a million deaths came to light, was to see one of the robber barons responsible for these crimes - ex-KGB agent, Lebedev - talking blithely of indulging his long-held desire to buy up the London Evening Standard. The 'credit crunch' has taken his vast wealth down to a mere $2.5 billion!

Some others of his ilk have suffered a blow recently with the collapse in the price of oil and the financial crisis worldwide. It has seen billions wiped off share values and the state moving in to take a more direct role in their companies.

But none of them is going to be on the streets, begging for a piece of bread, as so many of the Russian masses have done and will do, as long as capitalism survives.

Prime minister Putin now says the collapse of the Soviet Union was "the greatest geo-political catastrophe of the 20th century" but he was not amongst those who opposed the return to capitalism at the time.

Capitalism today

The researchers pointed to Latvia, Lithuania and Estonia along with Russia and Kazahkstan as the worst affected in the early 1990s with a 42% increase in the male death rate between 1991 and 1994. Now, these countries are amongst the first to be hit by the new tsunami of capitalist destruction.

Russia has seen mass protests in more than 50 cities against the government's attempts to make workers and middle class people pay for the crisis of their chosen system. Latvia and Lithuania (as well as Bulgaria) have seen street battles between police and angry protesters last week. Estonia has gone, like them, from a high growth rate to a contraction of 3.5% and its government's popularity is plummeting.

As workers and students in Eastern Europe begin to identify with and follow the example of those in Athens, Paris and Rome, a new era opens up. Millions were killed and maimed under Stalin.

More millions have had their lives wrecked by capitalism. Now mass struggle for a genuine democratic socialist alternative is firmly back on the agenda.

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Coronavirus crisis - Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • Our 'fighting coronavirus workers' charter', outlines a programme to combat the virus and protect workers' living conditions.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
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In The Socialist 21 January 2009:

No more bailouts for bosses!

Fast news: My Lords, Ladies and cash dispenser


War and occupation

Gaza war paves way for further conflict

Protesting against Gaza attacks

Egypt: Gaza conflict fuels anti-Mubarak opposition

Readers' comment: media reporting on Gaza


Socialist Party campaigns

Hands off Royal Mail

Wirral anti-cuts campaign

Save jobs - nationalise JCB

Fighting the cuts in Greenwich

Shop workers need a fighting trade union leadership

Campaigning in Exeter

Hoover workers march in protest at job losses

Amicus election

Glasgow Unison


Socialist Party feature

Obama takes power: What change will the Democrats bring?


International socialist news and analysis

Refugees and repression in war ravaged Sri Lanka

Exiled Zimbabweans demand Brown acts

Capitalism kills, concludes study of privatisation era

Lawyer assassinated


Environment and socialism

Opposing the expansion of Heathrow

Waltham Forest anti-incinerator campaign: Residents get results

Campaigners fight attacks on education and the environment


Socialist Students

Students fight academy status


Socialist Party review

What's going on? The meanderings of a comic mind in confusion, by Mark Steel


 

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