By Confernce of Socialist Economists
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Additional info for Capital & Class. - 1989. - Issue 39 issue 39
Egypt in 1976, Venezuela in 1989) suggests that if default were to be perceived by creditors as a last ditch effort by debtor governments to retain power in the face of popular upheaval, retaliation is much less likely because it would undercut the ability of the local states to maintain capitalist order. The necessity of such political economic calculation has been drummed into the heads of central bankers and government leaders by periodic worker explosions strong enough to force the abrogation of miscalculated agreements .
14 . This maintenance of average real wages, however, was bought at the price of a substantial widening in the differentials between those with the power to maintain or increase their real wage and those who could not. Such widening differentials tended, ceteris paribus, to decompose previous structures of power in the working class in favor of capitalist control. For a more detailed treatment of supply side economics and capitalist 15 . strategy in this period, along the lines of the argument of this essay, see: Cleaver (1981) .
Forms of organization. To date the organizational forms that have been developed in the struggle against the debt have often been obscure, or limited, or unproven . Most important and effective, at least in some instances, have been the popular upheavals in the debtor countries against austerity measures aimed at workers. Prototypical were the insurgencies in Egypt which forced the cancellation of food subsidy cuts and those in Brazil which countered the austerity wage decrees. Unfortunately, not only have the results of such uprisings have been mixed - some have failed with considerable loss of life - but their internal organizational dynamics have remained largely unknown to those not immediately involved .