COVID 19 and Crisis of Capitalism

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“Development of Socialism through the Lens of COVID-19 Response: Theory, Institution-building and Practice” –  Dew Gunasekara, Senior Leader, CPSL

Comrades and friends of South Asia

The world is passing through a period of profound crisis with much strain and pain to the peoples, the worldwide.

COVID - 19 was thrust upon us with the dawn of year 2020, at a time when neo-liberalism has run into crisis. So, the ongoing economic crisis was deepened, bringing misery to the people, with increased poverty and unemployment. The ongoing crisis is escalating far beyond Global Financial crisis of 2008 and even the great depression of 1928-33.

The world calls for changes.

On the other hand, Imperialism running out steam, is in desperation, resorting to creation of tensions in our region as apolitical solution to this on – going crisis of capitalism.

Sri Lanka too passed through an acute economic crisis, escalating from 2015 onwards, when the COVID 19 was thrust upon us.

Thanks to the well-established Public Health System in Sri Lanka brought about by the struggle of the left movement, the state machinery under the political leadership of President GotabhayaRajapakse was able to take swift and appropriate actions timely to nip in the bud the scourge of global Corona Virus. Peoples support was commendable despite strongest preventive and counter measures.

The package of financial stimulus offered to the economic agencies and also financial support for the needy people minimized the people’s suffering and kept the economy kicking.

After three months of hard times posed by the threats of COVID – 19, Sri Lanka embarked upon a gigantic task of reviving the economy. We are at present in the thick of that struggle.

In the context of these developments, unity of left, progressive and democratic forces is imperative. The left parties are called upon to comprehend this stark reality and act upon.

Fall of state revenue and consequent increase in Budget Deficits and drop of Foreign Exchange earnings to dangerous levels and the on-going debt crisis are our formidable challenges.

The external factor of our economy is vulnerable.

It is in this background that tensions in the world, as a result of potential trade wars, economic sanctions against selected nations, regional tensions are mounting.

As forecast by Engels prior to the 1st World War and by Comrade GeorgiDimitrov prior to the Second World War, being unable to go for a third World War due to nuclear deterrence, Imperialists desperately attempting to find political solutions to the on-going neo-liberal capitalist crisis by the escalation of tensions.

Here the target is obviously the Asian region, comparably the most stable economic region, specially targeting the Chinese economy.

Imperialism structurally being weakened, has no options to choose – only options are;

1. Competition

2. Co-operation and

3. Confrontation

Running out steam and having no options to resort to, imperialism is desperately creating tensions.

In the context of these developments, unity of left, progressive and democratic forces is imperative. The left parties are called upon to comprehend this stark reality and act upon.

Dew Gunasekara

Senior Leader, CPSL

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