In the post-First World war period, although capitalism temporarily stabilised to a certain extent the Russian market slipped out of the hands of the capitalist countries as a result of the Russian Revolution. Within a few days global capitalism again faced a severe crisis. In comparison to 1923-25, the supply of raw materials increased by 34% in 1926, 61% in 1928 and 92% in 1929. With 1929 as the base year, industrial production, however, declined by 65% in the USA in 1933, by 86% in England, by 66% in Germany and by 77% in France. The other countries, which were suppliers of raw materials also, faced similar crisis. During this period the number of unemployed rose to 1 crore and 70 lakhs in the USA, 40 lakhs in England and 80 lakhs in Germany. The figure for total world unemployment was in the range of 40 to 50 crores. This led to the rise of fascism that caused the 2nd World War.

When the 2nd World War was over, the capitalist production system regained its strength though temporarily. But subsequently the independence of the colonial nations and the successful adoption of socialism by China and some other countries have left capitalism amongst its ruins during different periods of time.

In recent times, the huge development in science and technology has increased productivity by incredible proportions. Thus the capitalists are carrying out large-scale production by employing a very small Labour force. But production of goods is not the only matter under consideration for the capitalists because manufactured goods cannot yield profits for the capitalists if they are unsold. Production is boosted up only through the presence of a large market. But the capitalists are no longer able to wider the market for their goods. This is the reason why they have resorted to the application of new technology and not because they are simply interested in increasing production.

According to the World Health Organisation (WHO), if the current trend of capitalist development is sustained then the number of unemployed and under-employed in the urban areas of the world would rise to 100 crores by the beginning of the 21st century compared to a figure 40 crores at the start of the 20th century. WHO opines that it is only through an increase in actual production and not in productivity that any sort of combat can be put up against such a critical situation. But the capitalist system is unable to do that. From the experience of the last two decades it can be seen that the in industrialised countries of the world, production-based employment has reduced by about 15% - this figure for England stands at 43%, 23% for France and 14% for Germany. For other European countries the figure is 10%. Even USA has not been an exception.

At the dawn of the 21st Century, one-third of the 450 crore population of the developing countries of the world is seen to have been deprived of the basic necessities of life. About 130 crores of people are not getting safe drinking water. One out of every seven children do not get schooling. 84 crores of people are suffering from under-nutrition and mal-nutrition. 88 crores of people do not get medical facilities. About 130 crores of people have a daily income of less than 1 dollar (equal to Rs. 44 at present). Even the most developed nations of the world have 1 in every 8 of their population living below the poverty line. They live as unemployed for a long period of time, deprived of requisite education and have low longevity.

On one hand, a great number of people are deprived of essential commodities required for living and on the other even the enormous technological progress cannot prevent the closure of many a factory and office owing to manufactured products remaining unsold in different countries. As a result of profit making being the sole motive of production with no concern for the society on part of the capitalists, there is concentration of social wealth in a few hands and thereby a large proportion of population loses its purchasing power.

From the 1980s the capitalist class have become very aggressive to fight against the crisis facing them. In the beginning of 1990s the downfall of socialism in hitherto Soviet Union and Eastern Europe has opened up new opportunities for the expansion of capitalism and has tilted the ‘pendulum’, though temporarily, in favour of the imperialist class. In this situation, the slogans of liberalisation and globalisation should by the MNG are only done to capture the world market as much as possible. They are using World Bank, IMF and WTO for this purpose. Their attack is directed towards the public sector which have grown up basing on self-reliance, specially the financial institutions and the social security systems in the developing countries originally established for the purpose of poverty alleviation. Health and education, too, have not been spared from the onslaught of the MNG. As a result, the market for goods is contracting and the capitalist system is disastrously suffering more and more each day.

Technological advancement has created opportunities for large-scale production for the common people. With the aid of technology, the productive capacity of the society can be harnessed for improving the standard of living of the people. But the new and advanced technologies as well as the productive capacity of the society are almost in complete control of the capitalists. And the latter in such a manner that the standard of living of the people is getting deteriorated instead of improving is utilizing these facilities. Today the capitalist system is an impediment in the process of industrial progress. Thus the new technology and the productive capacity of the world economy must be freed from the hands of the capitalist class for the development and welfare of humanity in the 21st Century.

The working class is a creation of the capitalists themselves. Just as capitalist production system would be irrelevant without the capitalist class, it will completely lose its significance without the working class too. From the very beginning of the working of the capitalist system in the world. Class conflicts between the labourers and the owners have been common. The exploitation of the working by the capitalists has been the basis of such conflict. The capitalists have always been on the look-out to appropriate maximum profits by paying the workers as low wages as possible and by making the latter work for as long as possible. On the other hand the laboures have endeavored to improve their terms and conditions of work. These two counter-acting forces have given rise to industrial conflicts. Although the choice whether to work or not has been granted to the workers by the capitalists from the outset the right to struggle for betterment of the terms and conditions of job did not belong to the workers.

At the start of the 20th Century, the working class was forced to work with no mounting security against problems associated with retrenchment, sickness, old age etc. The labourers were even prevented to exercise their political right (i.e. right to vote). As the century progressed, however, the working class was gradually able to earn back their rights through sever and persistent struggle. During this period, labour movement was classified into three categories-pure trade-unionism, anarchy and social democracy. Only trade unions did not have international organizations at that time. The intensity of the labour movement led the working class to become united and form and international labour union in 1903 called International Secretariat of National Trade Union Centres comprising of trade unions (at national level) of 14 countries. But there was opposition to the forming of such an organization a amidst the labour movement. Hence, later in 1913, although International Federation of Trade Unions (IFTU) was established, it was never able to lead the worldwide labour movement.

It is worth mentioning here that in 1889, within a few days of the rise of the Second International, the dominance of the revisionists was discernible in the Labour Movement. So there was an effort to intensify the Labour Movement on the basis of a policy of assistance of the working class instead of a policy of class struggle.

From the very start of the 20th Century the conflict between the Revisionists and the Marxists (in the 2nd International) was becoming intense. In consequence the Marxists dissociated themselves from the 2nd International before the 1st World War and the struggle of the working class began to get organized on the basis of class struggle and internationalism of the working class. This led to the rise of consciousness amongst the working class. Thus labour movement started to move beyond the domain of personal grudges and demands and a sort of awareness began to grow among the working class that they have a leading role to play in a structural transformation of the society.

As soon as the 1st World War was over, the working class took over power in Russia, Germany and Hungary. In Russia socialism started to gain importance under the stewardship of Lenin. But in Germany and Russia, as there was dominance of revisionism among the leaders within the working class, there was transfer of power from the working class to the capitalist class.

During and after the 1st World War period, trade union movement gathered momentum in many countries. As far as collective bargaining with the management was concerned, the working class acquired a stronger position. It was able to earn for themselves convenient amount of wages, an 8-hour working law, social security, factory law, right to vote etc. through a great struggle. However, it was not yet conversant with a direct attack against the capitalist system. Besides, the advent of "Labour aristocracy" weakened the unity of the working class. Between 1913 and 1920, the number of members of trade unions around the world increased from 1 crore and 50 lakhs to 4 crores and 50lakhs. In 1919, 2 crores and 30 lakhs was the number of members of IFTU.

At that time, a ground was created for International Labour Movement and organisation to be set up. But since the principal trade unions had given up the path of class struggle no effort was made to establish any powerful international centre of trade unionism. A proposal for the setting up of Labour Parliament based on class assistance or American Federation of Labour (AFL) made class-co-operation. Finally, however, in 1919, due to the efforts of the revisionists International Labour Organisation (ILO) was set up as a trilateral system, comprising of the working class, owner's organisation and the government with equal representation, which would work as an International Centre of Trade Unionism for the purpose of solution of problems of the working class. ILO has played an important role in earmarking the international labour standards of the working class of different countries without adversary affecting the capitalist system. But the government or the capitalist class thereby depriving the working class has not implemented such standards.