Nicaragua today: Decapitalization and the case for workers' control

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The damage inflicted by Hurricane Joan, combined with the destruction of the contra war and the economic sabotage of the internal capitalists, is just one more blow against the Nicaraguan economy.

Nature dealt Nicaragua a cruel blow several months ago. Hurricane Joan destroyed whole villages and left 300,000 homeless. It also wiped out hopes that the fragile economy would rebound from its prolonged tailspin.

The port of Bluefields on the Atlantic Coast was completely leveled. Vast sections of the social and industrial infrastructure, from schools to bridges, no longer exist. Extensive damage was done to such basic agricultural products as rice, cotton, sugar cane, cattle, and poultry.

The catastrophe could not have happened at a worse time. Even before the hurricane, there were 20 successive currency devaluations in the last year. Nonetheless, the devalued new cordoba remains in a steep decline, going from 10 to the dollar last February to 1600 to the dollar in November. In addition, some reports fear that runaway inflation could appear. • Francisco Mayorga, an authoritative Nicaraguan economist, predicted that inflation could reach as high as 40,000 percent. This may seem extreme, but today inflation already stands at 12,000 percent. By all accounts, Nicaragua faces its most difficult challenge since the 1979 revolution toppled dictator Anastasio Somoza.

Character of the war The U.S. war against Nicaragua is not over, its military phase has only shifted terrain. The new trenches are in the factories, workplaces, and farmlands. The weapons are hoarding, speculation, and decapitalization.

It is a war from which the workers and peasants continue to suffer and bleed.

The contras have failed to gain a foothold because the Nicaraguan people are fighting for a revolution and against a clear enemy-the armed Somocistas funded by U.S. imperialism. Despite all the suffering, death, and economic dislocations, the overwhelming majority supports the revolution.

This remains true. But today, the main threat is not so simply identified. It is a threat that comes from people who claim to be "Sandinistas, but not Communists." Every one of them claims to support the 1979 revolution. They pose as nationalists, but they are nothing more than contras without the green uniforms. They are the Nicaraguan capitalists. They are the internal front of the contras.

Nicaraguan capitalists are taking over center stage, standing in for their discredited mercenary surrogates. Keeping these murderers waiting in the wings, the capitalists have launched a full-scale internal contra war of their own.

The capitalists hate this revolution. They show their hostility every day, and it's taking its toll.

Economic sabotage

These "nationalists" have taken $1.7 billion out of Nicaragua since 1977. Most of their booty is sitting in Miami banks. This capital was needed to repair, build, and produce a new Nicaragua. Instead, these so-called patriotic businessmen removed funds equivalent to one half the damage caused by the U.S.-backed contra war. How did they do this?

Nicaraguan businessmen make illegal arrangements with foreign vendors. First, they work together to surreptitiously exaggerate the price of imported parts and equipment. Then they obtain scarce foreignexchange dollars at a very cheap price from the government to pay for these transactions. The profit from this duplicity is split with their overseas partners.

Often the imports never reach the factory or warehouse. They end up in the black market, where incredibly high prices can be charged.

Of course, all of this is illegal. In fact, the country's largest sugar refinery was recently The U.S government is looking on with glee at the despair inflicted on Nicaragua by Hurricane Joan. Even though it actively assisted in the earthquake-relief effort in Armenia, the U.S. State Department has continued to refuse sending any hurricane relief to Nicaragua.

Supporters of the Nicaraguan Revolution, on the other hand, are joining in hurricane-relief efforts and material-aid campaigns so that the natural disaster won't create even more despair for the contras and their internal allies to exploit.

A relief effort in this country is being organized by Quest for Peace. They can be reached at (415) 531-0779.-C.F.

Larry Boyd/mpact Visuals their machinery deteriorate to such an extent that small campesino farms are often more productive. In 1988, campesinos produced a liter of milk for 8.5 cordobas. The 70 top dairy ranchers demanded 25 cordobas a liter. They settled on payment of 13.85 cordobas a liter from the government.

This explains how capitalists escape the terrible poverty devastating the country. In fact, according to Envio, the largest businesses are still making as much profit as they did in 1980.

Next stage of the revolution Unfortunately, there is at present no effective way of monitoring economic sabotage. Without adequate mechanisms of control, the capitalists will continue to squander resources to line their own pockets and undermine the revolution.

The first document published by the Government of National Reconstruction in July 1979, its Fundamental Statute, established the right of workers to participate in the administration of the companies where they work.

This commitment was reiterated later in the first two articles of the new constitution, approved in 1987, with the following words: "The unions should participate in the drawing up, execution, control, and evaluation of production plans."

Supporters of the revolution recognize, however, that most worker participation is restricted to figuring out ways to boost productivity. This is obviously insufficient; a new approach is needed.

Establishing rigid landowners and big businessmen by the existing unions of the rural and urban workers would permit honest inspection of financial records, inventory lists, and production schedules. This would have immediate practical advantages.

For example, it would guarantee that imported products paid with hard-earned foreign exchange would actually arrive at the warehouses, factories, or farms—rather than landing in the black market, as it does now.

Workers' and peasants' control would also greatly reduce, if not eliminate, the diversion of government production incentives into the pockets of the capitalists. Simply put, its task would be to monitor the hoarding of goods, to report conscious damage or disrepair of equipment, and to inspect the books, inventories, and warehouses to ensure that production is made available at reasonable prices.

Taking these important steps does not automatically mean that production must be nationalized.

It is not necessarily wrong to allow capitalists to make a profit so long as the revolution can benefit from their technical expertise, financial connections to the world market, and other services. But it is dead wrong to allow the capitalists to swing the economy back and forth without the counterweight of control exercised by the only real allies of the revolution-the workers and peasants.

The capitalists must realize that their industries will be nationalized if they continue to sabotage the economy. The workers need the freedom to decide when and where this is necessary. They also need the power to enforce their decisions. The experience of control prepares the urban and rural workers for advancing to direct management of production once it becomes necessary.

An idea worth discussing The current economic difficulties are sure to stir big discussions inside Nicaragua. They already have.

The Oct. 13, 1988, issue of Barricada Internacional reports that "debate is raging among the rank and file of many companies." The article continues, "'Our union has no way of participating, ; complains Roberto Rodriguez, a worker at Polymer S.A., a private company. Rodriguez says that there are no mechanisms for discussing finances or wages. He adds that for the management 'there hasn't been a revolution; they continue to treat workers the same way as they did before 1979."

The capitalists are following a dangerous course. The same workers and peasants who overthrew Somoza will not so easily watch their revolution be stolen from them. But to protect and defend their gains, they are now challenged to extend the revolution by asserting more control over political and economic life.

The truth behind

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