EqualTimes.Org has a piece about the textile industry, in North Macedonia and capitalists doing what capitalists do.

‘For 70 years, Shtip has been the stronghold of the textile industry in North Macedonia. The sector is in decline, but it still employs nearly 30,000 people, a considerable number in this country of two million inhabitants.

Every morning, thousands of women workers are bussed to the many factories on the outskirts of North Macedonia’s towns and cities.

Ampeva herself worked as a seamstress in one of these factories for nine years. “There was no one to explain your rights or your working conditions, how much you should be paid, how many hours you have to work and how much overtime is paid, or who is supposed to help you if your rights are violated. Nothing was explained to us. That’s why we launched Glasen Tekstilec, to fight for the rights of women textile workers.”

In North Macedonia, hundreds of factories make clothes and shoes for Europe’s big brands. It is no secret how harsh the working conditions are in these factories, but the widespread violations of the labour law have long gone unchallenged.

Since its launch in 2017, Glasen Tekstilec has been collecting revealing testimonies on a daily basis. “The conditions in the factory were disastrous,” says Dimitrinka, in the organisation’s office. Every day, Glasen Tekstilec’s premises, decorated with huge posters depicting seamstresses as superheroes armed with needles and thread, welcome workers who are powerless in the face of their unscrupulous employers. They receive free advice, as well as practical legal help to defend their rights. Working hours not respected, wages paid months in arrears, unpaid overtime, maternity leave not granted, and so on: the members of the organisation take care of writing up their complaints and passing them on to the relevant institutions, such as the labour inspectorate.

Although the textile sector has been in steady decline for many years, it still accounts for over 10 per cent of North Macedonia’s GDP. Almost all of its production is for export, and the factories in the Shtip region work mainly for German, Belgian and Italian brands.

Having factories in south-east Europe is particularly advantageous for these large companies. “You have cheap labour, like in Bangladesh or China, but you’re in the Western Balkans,” explains Ampeva. “In just one day, you can send your production anywhere in Germany, for example. That’s what attracts these companies who have factories in Albania, Serbia, Montenegro and North Macedonia.”

A candidate for accession to the European Union since 2005, North Macedonia has reasonably protective labour legislation on paper, but it is rarely applied on the shop floor. The small country’s institutions remain fragile, and influential employers have little difficulty defending their interests with the decision makers. According to the specialists, the state’s control mechanisms are not working.

North Macedonia’s textile, leather and footwear industry union (Синдикат на работниците од текстилната, кожарската и чевларската индустрија) STKC, says it is trying to take action. “We react to every single violation of labour rights, through the labour inspectorate, the public ombudsman or legal action,” its president, Ljupco Radovski, tells Equal Times. But it is not always effective. “Complaints lodged by employees are most often ignored by the labour inspectorate and the judicial authorities,” says Branimir Jovanovic, an economist with the Vienna Institute for International Economic Studies (WIIW) .]

On the strength of the expertise put at the service of women textile workers, Glasen Tekstilec has established itself as an interlocutor in social dialogue. The organisation has, for instance, contributed to a number of increases in the minimum wage, which has risen from €130 ten years ago to €320 today.

At a time when galloping inflation linked to international tensions has exacerbated inequalities and made work even more precarious for private sector employees, the issue of pay is at the heart of workers’ demands.

According to many experts, the textile industry may not survive the current turmoil. “Nearly 10 per cent of workers in North Macedonia live in poverty, one of the highest rates in Europe,” warns economist Jovanovic.

“At the same time, the richest one per cent in the country earn 14 per cent of the total national income, and these economic disparities are most manifest in the textile factories. No one wants to work in this sector when wages are so low, the work is hard, conditions are poor and the workers know that the owners are pocketing all the profits. If things don’t change soon, the textile industry will slowly die out.”

Already hard hit by the 2008 crisis and the Covid-19 pandemic, is the North Macedonian textile industry living out its final days? Working conditions in the sector are driving away young people, who would rather emigrate to Germany. And with the shortage of labour, more and more European companies are moving their businesses to North Africa.

“The sector is collapsing, because nobody is taking responsibility for all these companies that don’t pay their workers’ wages,” protests an indefatigable Ampeva. “Unfortunately, this is a criminal economic sector and our politicians support these criminal practices. It is because of this system that our young people and healthy workers are leaving the country.”’

https://www.equaltimes.org/in-north-macedonia-textile-workers?lang=en

AfricaNews 6 April reports, ‘Zimbabwe has launched a new currency to replace its previous one that in recent months has been battered by depreciation, and in some instances rejection by the population. Authorities hope the new measure will halt a currency crisis underlining the country’s years long economic troubles.

Reserve Bank of Zimbabwe Gov. John Mushayavanhu said the new currency will be called ZiG, and will be anchored on gold reserves and a basket of foreign currencies.

The Zimbabwe dollar has come under sustained pressure in recent weeks, making it one of the world’s worst performing currencies.

Since January, the Zimbabwe dollar lost over 70% of its value on the official market, and was plunging even further on the thriving but illegal black market.

Inflation increased from 26.5% in December last year to 34.8% this January before spiking to 55.3% in March, according to official figures.

Traders were increasingly rejecting lower denominations of the now scrapped currency, with many insisting on payment only in U.S. dollars, which are also legal tender in the southern African country.

“We are doing what we are doing to ensure that our local currency does not die. We were already in a situation where almost 85% of the transactions are being conducted in U.S dollars,” Mushayavanhu told reporters in the capital, Harare. People have three weeks to exchange the old notes with the new currency, he said.

The announcement is the latest of a cocktail of currency measures undertaken by the Zimbabwean government since the initial spectacular collapse of the Zimbabwe dollar in 2009.

The period saw the country at one point issuing a 100 trillion Zimbabwe dollar banknote before the government was forced to temporarily scrap its currency and allow the U.S. dollar to be used as legal tender.

The country re-introduced a domestic note in 2016, marking the beginning of another round of currency volatility highlighted by changes to currency policy that included the banning of foreign currencies such as the U.S dollar for domestic transactions in 2019.

This was followed by the unbanning of the greenback a while later after few ordinary people took heed to the U.S dollar ban and the black market thrived, while the local currency quickly depreciated.’

https://www.africanews.com/2024/04/06/zimbabwe-unveils-new-currency-as-depreciation-inflation-stoke-turmoil/

The following is from the Socialist Standard November 1980

‘A currency unit is always in the end the name for a specific amount of gold (or silver). At one time—when paper currency was convertible on demand into a fixed amount of gold—this was obvious but has now become obscured in the system of “managed currencies’’ which grew up between the wars. In nearly all countries today the currency—the actual medium of circulation—is not gold nor even a paper currency convertible into gold but inconvertible paper notes and coins. Such a currency is said to be “managed” because the amount of it in circulation depends entirely on political decisions.

Before the era of managed currencies the link between a currency and gold was always clear. A law defined the meaning of the name of the currency (pound, mark, franc) in terms of a certain amount of gold (or silver, or both). This is no longer the case but the pound and other currencies continue to represent in economic reality a certain amount of gold. Gold is still today the money-commodity, the only real money, even though it has been replaced as the medium of circulation by paper and metallic tokens.

With a managed currency a government institution (Ministry of Finance, Central Bank) has to decide how much is put into circulation. The amount of currency needed to maintain a stable price level, however, is fixed by economic factors outside of government control, such as the total amount of buying and selling transactions, debts to be settled, velocity of circulation of the currency. The government is of course free to issue more (or less) than this amount, but if it issues more then the currency will depreciate.

The effect will be the same as if, under the old system, the government had passed a law re-defining the meaning of the word pound in terms of a lesser amount of gold—which is equivalent to increasing the prices of all goods expressed in the currency unit. This—overissuing an inconvertible paper currency—is what has caused the inflationary price rises which have gone on continuously in Britain since the beginning of the last world war. Inflation (properly understood as inflating, or overissuing, the currency) means that the currency has come to be defined in terms of lesser and lesser amounts of gold.

A managed currency only has a circulation within the borders of the state which manages it. No state can enforce the use of its paper currency outside its borders, though people there may choose to accept it. Paper currencies, however, can still be exchanged with each other. What determines their rate of exchange?

What we have said about the paper pound being the name for a certain amount of gold applies equally to the other paper currencies. The paper mark and the paper franc are also names for amounts of gold, though different amounts of course. In fact up until the end of 1971 the currencies of the member states of the International Monetary Fund were declared to the Fund in terms of weights of gold. Thus if the French franc was defined as 3gm of gold and the English pound as 39gm, then the rate of exchange between francs and pounds was £1 = 13 francs. The Member states of the IMF were supposed to maintain a more or less fixed rate of exchange between their currencies and those of the other members.

Had it not been for the inflationary policies pursued by all states this would have proved a relatively easy task. But in fact all states inflated their currencies, though not to an equal extent, so that the parities declared to the IMF came to no longer correspond to the economic reality. Those countries which had inflated their currencies more than average were sooner or later compelled to declare to the IMF that their currency should now be officially regarded as representing a lesser amount of gold. This devaluation meant that the exchange rate with other currencies had altered: their currency would now exchange for a lesser amount of all other currencies. On the other hand those countries which had a below average inflation were compelled to up-value their currency, known as revaluation, as happened a number of times to the D-mark and the Swiss Franc.

A devaluation then was a recognition on the international level of a currency depreciation that had already occurred internally. This was why Wilson was in a sense right when he declared in his famous 1967 statement that devaluation left unchanged the value of the pounds in our pockets. It did, because the depreciation had already taken place before! (As the Wilson government continued the policy of currency inflation, the pounds in our pockets did in fact continue to shrink, but because of the continuing inflation of the currency rather than because of the devaluation).

At the end of 1971 the IMF system of fixed parities, with periodic devaluations and revaluations as necessary, broke down. Instead countries just let their currencies float. What this means is that an internal depreciation of a currency resulting from its inflation is now immediately reflected in its rate of exchange with other currencies instead of building up towards an eventual devaluation.

Some countries link their currencies to others, agreeing that they will not let their currencies fall or rise above or below a certain margin compared with the other currencies in the system. One such system was the famous “snake” of European currencies, of which Britain was a member for a short while. The European Monetary System (EMS) is another such system.

For such systems to work each of the states involved has to have more or less the same rate of inflation. For if one state had a greater rate of inflation than the others, then its currency would tend to fall below the lower limit and in order to maintain itself in the system it would have to use up its reserves to buy its own currency so as to maintain its price (exchange rate with the others). The EMS does provide for the establishment of a special fund to help states in difficulty but its clear aim is to try to keep inflation rates down to the German level.

The last Labour government, presumably anxious to have a free hand to continue inflating the pound as it wished, refused to give an undertaking to keep inflation down that much and so Britain didn’t join. The present Conservative government has announced its intention to join, but is waiting for the time when (if!) the rate of inflation in Britain is at a more internationally acceptable level.

All these “systems” in the end are just makeshifts since none of them openly recognise that the only real money in the world today remains gold. Capitalists are more realistic—which explains the rise in the price of gold, and why it likely to keep on rising: nobody wants to be left holding worthless paper money as the international monetary system staggers from crisis to crisis.’

Adam Buick

https://socialiststandardmyspace.blogspot.com/2016/09/international-money-chaos-1980.html

Coulrophobia is a fear of clowns. Given that there are many clowns in positions of power across the world who are forcing the implementation of actions which, to a sane person are far into the realms of madness, then the fear of clowns, add to that politicians and capitalism itself, is an extremely rational attitude to hold.

It’s reported that Ukrainian circus performers have been designated a special category and are exempt from the meat grinder that is wasting so many lives in the conflict between Ukraine and Russia.

‘The government in Kiev has designated several circus troupes as enterprises of critical importance, whose employees will be exempt from mobilization.

President Vladimir Zelensky has enacted changes to the draft allowing the army to conscript 25-year-olds and abolishing several categories of exemptions from military service. However, certain state employees can still avoid the draft if their work is considered ‘critical’.

The Travelling Circus of Ukraine and five other troupes have been designated as “critically important enterprises… for the functioning of the economy and ensuring the livelihoods of the population during a special period,” Verkhovna Rada member Yaroslav Zheleznyak wrote on his Telegram channel.

In addition to lowering the mobilization age, Zelensky’s reforms envision creating an electronic database of eligible conscripts. That way, Ukrainians won’t be able to avoid call-up papers, as many have been doing. Another amendment has abolished a range of medical disabilities disqualifying one from military service, requiring certain disease sufferers to face a medical commission again.

Ukraine has had to rely on forced conscription to replenish its frontline units, due to a shortage of volunteers and a high number of battlefield casualties. ‘

A Ukrainian Lord Kitchener wannabe, Land Forces Commander Aleksandr Pavlyuk has warned that,’ Ukrainian citizens must realize that none of them will be able to escape mobilization as Kiev’s military suffers personnel shortages.’

He ‘urged Ukrainians “to put aside their emotions,” and enlist in the Armed Forces, stating that “the army and the people are inseparable” and that “the protection of the state is the constitutional duty of a citizen. It is necessary to understand that no one can sit this out. The face of the country, the fate of our people is at stake.’ He stressed that it is still lacking in manpower.’

What emotions are these that should be ignored? Ones that govern self-preservation and the strong desire, not having suicidal tendences, to avoid the high chances of being killed or wounded in the protection of the state?

The ‘state’ that Pavlyuk refers to is the a capitalist interests one, not one that the working class owe any allegiance to.

‘Previously, the general had said he felt no sympathy for any Ukrainians who had died while trying to avoid being forcibly drafted into military service and suggested that no such feelings should be expressed towards draft dodgers because it undermines mobilization efforts.

That was after reports revealed that dozens of Ukrainian men had drowned while trying to swim across the Tisza River on the border with Romania to escape enlistment. Additionally, the Ukrainian Border guard service released images of officers beating and humiliating dozens of men who were caught during attempts to be smuggled across the Ukrainian border.

The Russian Defence Ministry says Ukraine has lost more than 80,000 troops since January and more than 444,000, including 166,000 killed, seriously wounded, or captured, since the beginning of the conflict.’

THE SOCIALIST PARTY AGAINST ALL WAR

Almost forty per cent of Zimbabweans live in extreme poverty.

In capitalist terms two billion dollars is small change compared with the sums given to warring states.

‘Zimbabwe declared a national disaster on Wednesday as the El Nino weather pattern continues to cause drought across southern Africa.

The declaration follows a similar move by Malawi late last month. Neighbouring Zambia designated the regional drought a national disaster late in February.

President Emmerson Mnangagwa said that Zimbabwe needed $2 billion (€1.85 billion) in aid to help millions of people who are going hungry.

“No Zimbabwean must succumb or die from hunger,” Mnangagwa told a press conference. “To that end, I do hereby declare a nationwide State of Disaster, due to the El Nino-induced drought.”

He said that over 2.7 million people, or around a sixth of the country’s population, have not had adequate access to food this year due to low yields produced during the drought.

Mnangagwa appealed to UN agencies, local businesses, and religious charity organizations to contribute to humanitarian assistance.

The World Food Organization (WFO) has already rolled out an assistance program for 2.7 million people in Zimbabwe from January to March.

More than 60% of Zimbabweans live in rural areas. Much of the country’s rural population lives off subsistence farming, occasionally selling small surpluses.

Zimbabwe was once a major grain exporter, but has in recent years increasingly relied on aid agencies to avert famine.’

https://www.dw.com/en/zimbabwe-declares-national-disaster-amid-el-nino-drought/a-68733615

 From the April 1994  Socialist Standard

The American Treasury Secretary Janet Yellen is in China. She is not happy that Chinese capitalism is bullying American capitalism by not playing fair.

It isn’t known if she has threatened to take her ball in a la Violet Elizabeth Bott.

She is reported as telling (warning?) the Chinese, not a communist state, that they should reduce ‘excess industrial capacity that is pressuring other economies.’ (Yahoo!Finance 5 April)

She thinks that China is producing more commodities than it can sell in its home market and that this is more than ‘the global market can bear.’

Yellen said that commodities like electric vehicles (EVs), batteries and solar energy products, were undercutting competing workers and business in the U.S., Mexico and India.

Someone should give Yellen a copy of Karl Marx’s Capital to read.

For someone holding her position she seems remarkably unenlightened as to the purpose of capitalism and how capitalism functions.

The Socialist Party would be happy to further Janet Yellen’s education and explain also that the solution to these ‘problems’ and many more is Socialism.

DID YOU SEE THE NEWS? (ZOOM)

The Guardian, 4 April, carries a piece on the continuing loss of rainforests.

‘The destruction of the world’s most pristine rainforests continued at a relentless rate in 2023, despite dramatic falls in forest loss in the Brazilian and Colombian Amazon, new figures show.’

More at link.

https://www.theguardian.com/environment/2024/apr/04/global-deforestation-rainforest-climate-goals-brazil-colombia-agriculture

For the Socialist perspective read An Inconvenient Question. Socialism and the Environment

‘In this pamphlet we begin with a brief review of the development of Earth and of humankind’s progress on it so far. We then examine the mounting evidence that the planet is now under threat of a worsening, dangerous environment for human and other forms of life. The motor of capitalism is profit for the minority capitalist class to add to their capital, or capital accumulation. Environmental concerns, if considered at all, always come a poor second. The waste of human and other resources used in the market system is prodigious, adding to the problems and standing in the way of their solution.

Earth Summits over the last few decades show a consistent record of failure – unjustifiably high hopes and pitifully poor results sum them up. The Green Party and other environmental bodies propose reforms of capitalism that haven’t worked or have made very little real difference in the past. Socialists can see no reason why it should be any different in the future. Finally we discuss the need, with respect to the ecology of the planet, for a revolution that is both based on socialist principles of common ownership and production solely for needs, and environmental principles of conserving – not destroying – the wealth and amenities of the planet.’

An Inconvenient Question. Socialism and the Environment

In recent years the environment has become a major political issue. And rightly so, because a serious environmental crisis really does exist. The air we breathe, the water we drink, the food we eat have all become contaminated to a greater or lesser extent. Ecology – the branch of biology that studies the relationships of living organisms to their environment – is important, as it is concerned with explaining exactly what has been happening and what is likely to happen if present trends continue.

Since the publication of our Ecology and Socialism pamphlet n 1990 environmental problems facing the planet have got much worse. We said then that attempts to solve those problems within capitalism would meet with failure, and that is precisely what has happened. Recent research on increasing environmental degradation has painted an alarming picture of the likely future if the profit system continues to hold sway. Voices claiming that the proper use of market forces will solve the problem can still be heard, but as time goes on the emerging facts of what is happening serve only to contradict those voices.

In this pamphlet we begin with a brief review of the development of Earth and of humankind’s progress on it so far. We then examine the mounting evidence that the planet is now under threat of a worsening, dangerous environment for human and other forms of life. The motor of capitalism is profit for the minority capitalist class to add to their capital, or capital accumulation. Environmental concerns, if considered at all, always come a poor second. The waste of human and other resources used in the market system is prodigious, adding to the problems and standing in the way of their solution.

Earth Summits over the last few decades show a consistent record of failure – unjustifiably high hopes and pitifully poor results sum them up. The Green Party and other environmental bodies propose reforms of capitalism that haven’t worked or have made very little real difference in the past. Socialists can see no reason why it should be any different in the future. Finally we discuss the need, with respect to the ecology of the planet, for a revolution that is both based on socialist principles of common ownership and production solely for needs, and environmental principles of conserving – not destroying – the wealth and amenities of the planet.

Contents

Introduction

What is ecology?

Earth under threat

Profit wins, the environment also ran

The waste of capitalism

Earth Summits – a record of failure

Green reformism

Socialism – an inconvenient question?

To buy online go to https://www.worldsocialism.org/spgb/product/an-inconvenient-question-socialism-and-the-environment-2/

To get a copy by post send a cheque or postal order for £4 (made out to “The Socialist Party of Great Britain”) to: The Socialist Party, 52 Clapham High Street, London SW4 7UN.