Belgium On Thursday 22 May Brussels was paralysed for the third time in 17 days by a spreading vi service surike agalst goverment cals. Schools, transport and postal services came to a halt and employees in many supermarkets and factories walked out in support.
The recently reelected Martens government has launched a Thatcher-stvle attack on public spending. It proposes to start with cuts totalling £2.8 million in 1987, principally on social services and industrial subsidies in low employment areas. It also wants to privatise telecommunications. The government is already embroiled in a bitter struggle with miners in Limburg over attempts to close down the Belgian coal Luusury• Greece The 'Euro' Communist Party of the Interior is to rename itself the New Hellenic Left Party, dropping the word communist from its programme to attract voters disillusioned with the governing socialist party, Pasok. In the June 1985 elections the Eurocommunist party won only 1.84 per cent and a single member of parliament.
Party got 9.89 per cent and 12 members of parliament. The pro-Moscow Greek Communist 1985 AND 1986 saw severe military defeats inflicted by Nicaragua's government on the US backed contras. It is also a major reorganisation of Nicaragua's The first deepening of the agrarian reform — with emphasis on distributing land to individual peasants. The second step was a reorganisation of the economy as a whole. MARIA MERRI looks at that second shift, and the economic goals being set by the FLN.
ON 9 March, the Nicaraguan government announced increases in prices wages. The papers pleasant reading. EveryoHe these steps would mean for them. But it cannot be said that this came as a sul Since the national currency was devalued on 1 February, WIld the cordoba going from 28 to 70 against Ine colar, everyone had been wondering when une ases wouto cont big they would be.
Wages were raised by 50 per cent on 2 March, after having already been increased ov an averace or 89 per cent on 1 January.
Prices. on the other went up between 50 per Coll per depending on the product, and even by 200 per cent for 'high restaurants. All prices and charges went up food industry, transport, services, electricity, and so on.
These measures were a continuation of the Te resented the taken in February 1985 the Wilt! removed the subsidies on necessities The prices of such products nac been kept at an artificially low level since the revolution. step in this economic shift was a Officially, the inflation rate was 238 per cent in 1985. But this figure does not take into account the great disparities in price What is clear is that the standard of living went down in 1985 and that the drop was relatively steep.
The Sandinista government has made no secret of the fact that 1985 was one of the most difficult years since the triumph the revolution in 1979. The war unbalancing whole economic system, which, in dependent country and in the midst of the world economic crisis was already vulnerable estimated that defence is absorbing about per cent of the state budget annually There is the army of 50,000 that has to be fed, clothed and transported to the war zones. Moreover, represents 11 per cent of the country's agricultural anc industrial labour force For 1985 alone. the total cost of the material damage caused by the contras is calculated at $120 million.
In addition to maintaining economic blockade, Washinitos of vetoed certain credit 'extenaca Nicaragua internatona financial Defence: 50 per cent of the budget BONS In total, in 1985, the cost of US aggression in all its forms (military commercial and financial) wa estimated to have reached the level of $608 million, or 26 per cent of the gross domestic product.
As if this were not enough, in the past year agricultural produchon was hit by series of disasters, drought followed by catastrophic floods.
The volume of industrial production fell by dropped by thile cort.
dropped by Of the late. cent. The value totalled only $300 million and covered only 36.2 pe cent of imports. The trade deficit has risen to $531 million dollars , the biggest ever seen in Nicaragua.
Moreover despite drastic cutbacks, the deficit in the state budget amounted to 23 per cent of the gross national product Even to be able to pro duce, Nicaragua has tirst duction of cousing oi and to import. prosoap of the five necessities prices are guarantee debuted inte recured l porting $42 million worth ot raw materials.
Here again, the war is blocking greater utilisa. tion of the country's own resources, which could, at least in part. reduce L dependence. For example the whole forestry elopment project which to provide the basis Was for increasing nontraditional exports and to lay the foundations for lumber industry, has been thrown into disarray by the contras That means that "14 million in invest. ment have gone up in smoke We don't have bi what we don't have. phrase by Commandante captaics. ulc minister of internai trade, up •pertectiv the tacts about the population's numberone problem. suppiy. An' shortage feeds speculation the black market. Nicaragua is no exception to this rule Through the Workers Supply Centres (CAT) and the Sandinista Committees (CDS), the government provides monthly quota of basic food • products, hygienic necessities and clothing.
However, while products are distributed in accordance with number of persons livin in the same household other products, 1n ticular necessities, are distributed ac cording to a quota allotter 1n dividually. In other word a single sage amount as same amount one with a wife and five children.
Moreove since the CAT and CDS often do not have sufficient stocks to meet the demand, it necessary to resort to the free market where the prices are very elastic In an attempt to imSandinista government launched a twofold battle. Its first objective is to eliminate, or at least try to eliminate, the 'infor mal' which is an sculul. enormous cancer eating away at Managua. The second is to increase, at any cost, production agricultural and industrial productivity. That is the reforms which we will look at next week.
Socialist Action 30 May 1986
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