GOALS, PROCEDURES, AND EFFECTS OF CAPITALISM·

SOLIDARITY

11.3 GOALS, PROCEDURES, AND EFFECTS OF CAPITALISM·

IMPERIALISM

Guevara's 1964 United Nations Trade Conference speech delivered in Geneva, lays particular emphasis on the global role and effects of capitalist-imperialism.

With this as background, he endeavours to offer an official set of guidelines which may serve as countermeasures to the status quo. He starts off by arguing that most of the underdeveloped countries are in 'total stagnation' and that in some of them the rate of economic progression is exceeded by that of its population growth. These phenomena he reasons, are 'not accidental' but operate in tandem with the objectives of the developed capitalist system in the process of expansion. This development imposes onto the poor nations 'the most abusive and naked forms of exploitation'. Guevara argues that, since the close of the nineteenth century, this 'aggressive expansionist trend' has been exhibited in various economically-backward countries. In present times, he maintains, it takes the form of control by the developed powers over the production of and trade in raw materials in the dependent countries. This is shown also by the dependence of a given country on a single primary commodity. This infusion of capital from the industrial countries is the essential provision for this economic dependence he says. He sees this economic infiltration and subsequent domination, as taking on the following forms: loans issued on 'onerous terms', investments that subject a given country to 'the

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power of the investors', 'technological subordination', 'control of a country's foreign trade by big international monopolies' , as well as, 'the use of force as an economic power to reinforce other means of exploitation'.

Guevara goes on to cite the International Monetary Fund, the then International Bank for Reconstruction and Development, and the Inter-American Development Bank as examples of international organisations used by colonial powers to dominate poor nations, among which the US features as foremost for him. All these organisations are governed by 'rules' and 'principles' that safeguard 'fairness and reciprocity' in global financial dealings. These, in reality, are for him 'mere fetishes behind which hide the most subtle instruments for the perpetuation of backwardness and exploitation'. He regards the IMF for instance, as preventing underdeveloped countries from shielding themselves against competition and penetration by foreign monopolies. The establishment of 'equal treatment' and 'reciprocal concessions' between developed and underdeveloped nations maintains the status quo and serves the economic interests of the dominant nations. Bodies like the IMF neglect to diminish exploitative measures such as 'agricultural protectionism, subsidies, tariffs', and the like, in the expansion of exports from the dependent countries' (EG 196412003r, 311-13). As a direct result of these measures, Guevara argues, the wealth created by the masses who live in conditions of 'backwardness, hunger and poverty', is enjoyed predominantly by the capitalist class.

Continuing his speech, Guevara records furthermore that since 1961, while '$1.735 billion' left Latin America in the form of interest on foreign investment, '$1.456 billion' was transferred from the continent as a result of short-term and long-term loans. As such, Latin America's experience of the type of aid offered by the developed capitalist world, as in the Alliance for Progress, for instance, 'has been a sad one'. For this reason, this experience must serve as a 'warning' to other regions and to the underdeveloped world in general (EG 1964/2003r, 314-15).

Guevara states, moreover, that at the time the region's economic growth is virtually at a standstill as it is 'devastated' by inflation and unemployment; it is 'caught up in the vicious circle of foreign indebtedness'. He warns that because

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of the existence of deep social tensions, armed conflict could flare up (EG 1964/2003r, 315).

Cuba, Guevara remarks, revealed these facts as they arose in the past and, furthermore, forecast the outcome of capitalist rule. The decline of trade relations results in underdeveloped countries exporting more raw materials and primary commodities in order to import industrial goods charged at much higher costs. In addition, there exists 'outright discrimination' against countries that have chosen to institute different economic structures. Trade discrimination is practised by the imperialist countries against the socialist countries with the aim of 'blocking their development'. He notes this has been tantamount to 'a real blockade', not only in the case of Cuba, but also in the cases of East Germany, China, North Korea, and Vietnam. The ultimate aim of imperialism he reaffirms, is to warrant that 'the monopolies do not loose their field of exploitation and at the same time strengthen the blockade of the socialist camp' (EG 1964/2003r, 317).

'The world has plenty of hunger, but not enough money to buy food' Guevara maintains. In the underdeveloped countries - 'the world of hunger' - projects for increasing food production are deferred in order to sustain existing prices. 'This is the inexorable law of the philosophy of plunder, which must cease to be the rule in relations between peoples' Guevara declares. Furthermore, he believes that certain bourgeois governments have made 'common cause with imperialism' 'they have become appendages and agents of imperialism' (EG 1964/2003r, 318-19).

11.3.1 Imperialist measures in Cuba

In his address 'The philosophy of plunder must cease' - delivered in March 1964 at the United Nations Conference on Trade and Development in Geneva, Switzerland (Deutschmann 2003, 305) - Guevara delves into US imperialism's role and its wide-ranging consequences for Latin America and, particularly, Cuba. At the inception of the speech Guevara states that Cuba's location alone should make it clear that it is 'an underdeveloped country', 'one that bears the scars of colonialist and imperialist exploitation' that it knows 'from bitter experience' the consequences of subjugating its 'markets', 'entire economy',

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and 'governmental machinery' to a foreign power. Being fully aware of the gravity of Cuba's existing situation, a matter that conceivably compelled immediate international attention for him, he announces that 'Cuba speaks here as a country under attack' (EO 1964/2003r, 304), proceeding to list a host of imperialist measures that have been instituted against the island since the triumph of the revolution. In his extensive list of 'threats' and 'offences' that have corne from the country's northern neighbour, he announces that

• Cuba has been the object of 'imperialist wrath and the object of every conceivable kind of repression and violation of international law known to all' .

• Acts of aggression by the US against Cuba began since the triumph of the revolution.

• These acts initially took the form of 'direct attacks' on Cuban production centres.

• This was followed by acts aimed at 'paralyzing' the Cuban economy.

• In mid-1960 attempts were undertaken to cut off Cuba's fuel lines, needed for its industries, transport, and power stations.

• The independent US oil companies have refused to sell petroleum to the island.

• Efforts were made to exclude Cuba from gaining access to the foreign exchange required for foreign trade.

• An initial cut in July 1960 of 700,000 tons in the country's sugar quota for the US was followed by a complete boycott from March 1961 of all sugar products

the country's main export commodity.

• The prohibition in October 1960 on shipments reaching the island practically crippled, the Cuban industry as raw materials and spare parts could not reach the country.

• On February, 3, 1962, President John F Kennedy placed an official embargo on all US trade with Cuba.

• Following the above acts, the US administration subjected the country to an economic blockade with the aim of preventing trade with other countries as well.

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• From January 24, 1962, the US Treasury Department instituted a ban on the importation into the US of any article made in whole or in part from products of Cuban origin, even if manufactured in another country.

• The US issued a decree on February 6, 1963 which entails that goods bought with US government funds would not be shipped in vessels flying the flag of foreign countries that had traded with Cuba after January 1 of that year.

• The above measure was the beginning of a US blacklist, which at the time, included more than 150 ships belonging to countries that had not yielded to the blockade.

• On July 8, 1963 the US Treasury Department froze all Cuban property owned in the US and prohibited the transfer of dollars to or from Cuba .

• On February 18, 1964 the US announced the suspension of its aid to the United Kingdom, France and Yugoslavia since they continued trading with the island.

Following these pronouncements, Guevara enquires from the delegates present whether these 'economic transgressions' can be considered legitimate:

I ask whether that attitude is or is not at odds with the principle of the organisation that brings us together - that of practicing tolerance among states ... of abandoning all forms of discrimination and removing the barriers between countries with different social systems and at different stages of development (EG 196412003r, 310-11).

In his prior speech, 'The Cuban revolution's influence in Latin America' (EG 1962/2003m) delivered to the members of the Cuban Department of State Security (DSE) (Deutschmann 2003, 275). Guevara deduces that 'the US has chosen and meticulously followed a policy of isolating the Cuban people' from the Latin American masses. He reasons that it intends to weaken both the island's economic and social relations with neighbouring states: 'The US will engage in acts of aggression and isolation' in order to 'cloak us so nobody will see us and we won't have any pernicious influence' (EG 1962/2003m, 286-87).