Sunday, February 22, 2026

What 'peace dividend'? (1991)

From the February 1991 issue of the Socialist Standard

Many workers believe—or, until the Gulf crisis, believed—that with the end of the Cold War peace has broken out and that as a consequence the demand for war weapons has gone into a permanent decline, so that the money spent on them can be directed to improving living standards and the industries producing them converted to peaceful purposes.

Talk of this so-called “peace dividend" began following Gorbachov’s speech at the United Nations at the end of 1988, since when there has allegedly been “no enemy in Europe". Tom King, the Defence Secretary said as much in a statement to Parliament on 18 June last year justifying reductions in defence spending. Then in July, as part of the defence review, he announced the cancellation of an order for 33 Tornado aircraft for the RAF. British Aerospace responded by announcing a cut of 800 in their manning on Tornado assembly. This was followed up by the announcement in November of a "restructuring” involving a cut of about 20 per cent in staff and the closure of two large sites, in Kingston and Preston. Again the recent changes in eastern Europe were cited as a factor. The future of the European Fighter Aircraft (EFA), already hazy, has become more doubtful still following German reunification and the resulting reassessment of German military requirements.

Arms still in demand
This is not a new situation. The demand for arms fell temporarily after the Boer War and after both World Wars. In 1902 and 1918 workers lost their jobs as a result. There were also campaigns for diversification and the manufacture of alternative products at armament plants such as Woolwich Arsenal, which had little success despite some support from local councils and chambers of commerce. In 1945, while there was again a temporary slump in arms production, capitalism went into a boom phase which minimised the disruption. In none of these cases, however, had peace broken out. Indeed in 1945, following the defeat of the Axis powers, two new aggressive power blocs formed immediately and the demand for military equipment duly recovered.

This conflict—the Cold War—has now come to an end, at least temporarily. The main reason for this has been the need for Russia to take time out to give urgent attention to its ailing economy. But the basic cause of war, the struggle of competing capitalist rivals for raw materials, trade routes, markets and strategic areas, remains untouched. This may cause the Cold War blocs to re-form at some future date. Or future superpower conflicts may increasingly take the form of local wars on the Korean and Vietnam lines, as this in theory reduces the chances of a nuclear holocaust which would be an overkill even from the capitalist viewpoint. The danger of such a holocaust, however, will remain as long as capitalism does. None of these scenarios, needless to say, in any way remotely resembles peace.

The truth of this is underlined by the current Gulf crisis and the Iran-Iraq war which preceded it. This conflict is so brazenly a struggle for control of the world’s oil supplies as to be reminiscent of the period prior to World War 1, before so-called "communism” and fascism arose to be used to mask the true cause of capitalism’s wars. Indeed so clearly does this current conflict illustrate the truth that further comment would appear superfluous.

Patriotic unions
The current "crisis" in the arms industry (notice how any suggestion of peace leads to talk of a crisis!) will not prove lasting. That does not mean that the working class, through the trade unions, should not do all they can to minimise the effect of the present downturn. Just as pressure to defend real wage levels can succeed, because the cost to the capitalist of a strike may he greater than that of conceding, so for a similar reason redundancies may be reduced, by determined militant action, below the original figure demanded by the employers. Socialists fully support and participate in such efforts.

However, what we have been seeing from the trade unions goes far beyond this and is not acceptable from the socialist viewpoint. Basically it amounts to an attempt to reform capitalism in order, so they hope, to keep their members in employment. MP's are lobbied, the capitalist government is approached, searches are made for other possible sources of investment and if found support for them is asked for. The unions have even been demanding that the government revoke its cancellation of the Tornado order!

That is not to say that such attempts are doomed to failure. By and large, however, they come from an attitude in which fantastic and utterly useless remedies are being put forward, something that is not confined to armaments workers of course. Sometimes sections of the capitalist class lend some support if they see a prospect of profit, but it will of course be support on capitalist conditions, which cannot be of any real benefit to the working class.

We can see in such thinking a reflection of the attitude of the Labour Party to which the unions are unfortunately still wedded. The Labour Party is mainly composed of workers who believe that Labour politicians can run capitalism better than the capitalists. The example of Solidarity in Poland, originally a trade union, but which sprouted a political wing that now forms a government which is enforcing draconian austerity measures ought to serve as a warning to the super-reformist (and often super-patriotic) British trade unionists who are so numerous in the aircraft industry.

There can be no compromise with capitalism, and no matter how desperate the short-term situation may be, workers should not entertain such ideas. What may look on the surface to be just a compromise, will always prove in the end to have been surrender.
E. C. Edge

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