SP Newsletter No.272
While the government is busy telling workers to tighten their belts, they have announced plans to increase defence spending by more than 20 per cent. The reasons outlined for this enormous increase have been explained in the government’s Defence White Paper which was released in May.

The paper claims that China poses a significant strategic risk to Australia and that a military build up is required in order to head off a possible conflict. At the same time we have seen scandals surrounding the Defence Department and the replacement of Joel Fitzgibbon who was the Labor Minister for Defence.

Fitzgibbon was forced to resign after it was revealed he had failed to declare two paid trips to China as a guest of a Chinese-Australian businesswoman. The reality is that his removal was less about travel rorts and more about divisions within the Defence Department about how to deal with China. These divisions are a reflection of the debates taking place within the Australian ruling class.

Australian capitalism faces a serious strategic dilemma against the backdrop of the rise of China and the economic decline of the US. On the one hand China is becoming a threat to Australia’s economic influence in the region as they are building relations with countries like Fiji, East Timor and Papua New Guinea. Australian capitalism sees these countries as key markets.

On the other hand China is Australia’s fast growing trading partner. On the back of mining exports, China has been responsible for a significant amount of Australia’s recent economic growth. While one section of the ruling class is making mega profits from China, another section sees China as cutting across their ability to plunder the region.

For some time the Australian ruling class has aligned itself with US imperialism as the best way of exercising control in the Asia Pacific. In exchange for supporting US military adventures around the globe, Australia has been charged with the responsibility of being the ‘deputy sheriff’ of the region. With the rise of China this position is now somewhat under threat.

The Rudd Government sees the military build up as an important part of protecting the profits of the Australian ruling class. The problem is that many in the ruling class are concerned that they soon may be forced to decide between aligning with either China or the US. Aligning with one or the other would be a disaster for profits and with Australia being militarily dependent on the US and the economically dependent on China, a neutral stance is not an option.

As the economic crisis intensifies China and the US will be jostling for control of more markets and resources. Rivalries will increase and it is possible that skirmishes will take place in the region. The whole situation highlights the reactionary role of capitalism and the inability of the system to take society forward.

Workers and young people in Australia should oppose this military build up as it is only aimed at serving the needs of the big business elite. In a saner world the billions of dollars spent on military spending would be spent on improving people’s lives. Ordinary Australians need to look towards socialist solutions which promote co-operation and solidarity rather than conflict and super-exploitation in the region.

Upcoming SP meetings

The Melbourne Branch of the Socialist Party meets every Wednesday 7pm at Trades Hall on the corner of Lygon & Victoria Streets Carlton South. Upcoming meetings include:

29/7/09 – The Paris Commune: Lessons for today
5/8/09 – CWI world school report
12/8/09 – The Stonewall riots: The birth of the gay rights movement
19/8/09 - The theory of Permanent Revolution

For more information or for details of meetings in other parts of Australia contact our National Office on 03 9639 9111.

News links:

Russia: 20th anniversary of Soviet miners’ strike
http://socialistworld.net/eng/2009/07/2301.html

CWI Summer School: Building socialist ideas in a time of deep capitalist crisis
http://socialistworld.net/eng/2009/07/2202.html

Europe: Joe Higgins first speech to European parliament
http://socialistworld.net/eng/2009/07/2102.html

Join the Socialist Party

If you agree with what you have read in our newsletter or on our website you should consider joining SP. The Socialist Party has branches in Melbourne, Sydney, Newcastle and Perth as well as members and supporters in all other states.

We are involved in trade union work and student work. We also run community, anti-war and environmental campaigns. But most of all we want to build a party that will fight to get rid of the capitalist system, the system that is at the root of all of these problems. We fight for socialism - a system that will bring an end to wars, poverty and environmental destruction. To join SP contact our National Office on 03 9639 9111 and we will send you a membership application form.

Subscribe to ‘The Socialist’ newspaper!

Support the Socialist Party by subscribing to our monthly newspaper ‘The Socialist’. Subscription rates are only $10 per year or $20 solidarity price. You will receive 11 copies per year delivered to your door every month. You will also receive our email newsletter every week and you will know that you are supporting an organisation that is at the fore of fighting against the capitalist system. To subscribe to ‘The Socialist’ contact our National Office on 03 9639 9111 and we will send you a subscription form.

Socialist Party contact details

Melbourne: Phone Anthony on 0396399111.
Sydney: Phone Gary on 0297287727.
Newcastle: Phone Samantha on 0249681545.
Perth: Phone John on 0894020728.
Rest of Australia: Phone our National Office on 0396399111.
Rest of the world: Phone our International Office on ++ 44 20 8988 8760.

The Socialist Party is the Australian section of the Committee for a Workers’ International (CWI). The CWI is organised in over 40 countries across the world.

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