Economics and Intervention

1
Economics and Intervention
2
A New Power Emerges in the West

• 1823 Monroe Doctrine
• U.S. steps forth as the major power in the
  Americas
• Seeks economic and political control of Latin
  America
• Imperialism Direct intervention, conquest,
  annexation (i.e. Hawaii)
• Colonialism Direct intervention, formal control
  (i.e. army, U.S. law) of external territory (i.e.
  Puerto Rico)
• Neocolonialism (Interventionism) Economic /
  political influence / action according to
  interests of neocolonialist power

What goes on in the
Americas, stays in the Americas. No more European
colonization in the Americas (U.S. only!).
3
Colonialism vs. NeocolonialismWhats the
difference?

• Colonialism Land
• Neocolonialism Money
• After claiming territories after the
  Spanish-American war (1898), U.S. colonialism in
  Latin America generally comes to an end
• but neocolonialism surges ahead!

4
Early 20th Century

• U.S. has the gold and is making the rules
• Major rise of MNCsmostly U.S. owned in Latin
  America
• Rules in U.S.s favor, not Latin Americas

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U.S. MNCs (1900)

• American Sugar Refining Co Sugar
• GE / RCA / ATT Trans, Comm
• UFCO Fruit, Trans, Comm
• Standard Fruit Steamship Fruit, Trans
• American Tobacco Company Tobacco
• Standard Oil Petroleum
• National City Bank (Citibank) Finance
• Asarco (Am Smelt / Refining Co.) Mining (Silver,
  Gold)
• Anaconda Copper Mining Mining (Copper)
• Intl Telegraph and Telephone Communications
• W. R. Grace and Co. Fert, Trans, Mining
• Aluminum Co. of Am. (ALCOA) Mining (Bauxite)

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Panama Canal
7
You mean the Colombia Canal?
8
Panama Canal Zone
10 miles wide
Part of U.S 1903-1979 Joint control 1979-1999
Panamanian control 2000
9
1904 Roosevelt Corollary

• Roosevelt reasserts Monroe Doctrine
• U.S. could supervise internal affairs of
  countries in Latin America and Caribbean If U.S.
  determined any chronic wrongdoing by any
  country in Latin America, U.S. intervention would
  be justified
• Under Roosevelt, the
• U.S. used the Corollary
• to justify intervention
• Still (unofficially) used today!

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Interventionism

• Mechanism to enforce neocolonialism
• Make adjustments in / on / with external
  locations for political / economic reasons
• May involve political or economic influence,
  military, paramilitary, special forces,
  unofficial invasions, sanctions, aid, etc.
• Ultimately used to gain / maintain political and
  / or economic control (of U.S. investments)

Q How many times has the U.S. intervened in
Latin America since the Monroe Doctrine (1823)?
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1845 Texas, formerly a part of Mexico, joins the
U.S. 1846 The U.S., fulfilling the doctrine of
Manifest Destiny, goes to war with Mexico and
ends up with a third of Mexico's territory.
1850, 1853, 1854, 1857 U.S. interventions in
Nicaragua. 1855 Tennessee adventurer William
Walker and his mercenaries take over Nicaragua,
institute forced labor, and legalize slavery.
He's ousted two years later by a Central American
coalition largely inspired by Cornelius
Vanderbilt, upon whose trade Walker was
infringing. "The enemies of American
civilization-- for such are the enemies of
slavery-- seem to be more on the alert than its
friends." --William Walker 1856 First of five
U.S. interventions in Panama to protect the
Atlantic-Pacific railroad from Panamanian
nationalists. 1890 U.S. Troops into Marines
clash with Chilean nationalist rebels 1891
Black labor revolt on U.S.-claimed Navassa Island
(Haiti) defeated 1894 U.S. Troops begin
month-long occupation of Bluefields,
Nicaragua 1895 U.S. Navy and Marines land on
Panamanian isthmus in Colombia 1896 U.S. Marines
land in port of Corinto, Nicaragua 1898 U.S.
declares war on Spain, blaming it for destruction
of the Maine. (In 1976, a U.S. Navy commission
concludes that the explosion was likely an
accident.) The war enables the U.S. to occupy
Cuba, Puerto Rico, Guam, and the Philippines.
1899 U.S. Troops again land in Bluefields,
Nicaragua 1903 The Platt Amendment inserted into
the Cuban constitution grants the U.S. the right
to intervene when it sees fit.
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1903 U.S. Marines intervene in Honduran
Revolution 1903 When negotiations with Colombia
break down, the U.S. sends ten warships to back a
rebellion in Panama in order to acquire the land
for the Panama Canal. 1904 U.S. sends customs
agents to take over finances of the Dominican
Republic to assure payment of its external debt.
1905 U.S. Marines help Mexican dictator
Porfirio Díaz crush a strike in Sonora. 1905
U.S. seizes control of Dominican Republics
financial institutions to protect American
investments 1905 U.S. troops land in Honduras
for the first of 5 times in next 20 years. 1906
Marines occupy Cuba for two years in order to
prevent a civil war. 1907 Marines intervene in
Honduras to settle a war with Nicaragua. 1908
U.S. troops intervene in Panama for first of 4
times in the next decade. 1909 Liberal
President José Santos Zelaya of Nicaragua
proposes that American mining and banana
companies pay taxes and appropriates church
lands, legalizes divorce, and executes two
Americans for participating in a rebellion
against him. He is then forced to resign through
U.S. pressure. The new president, Adolfo Díaz, is
the former treasurer of an American mining
company. 1910 U.S. Marines occupy Nicaragua to
help support the Díaz regime. 1911 The Liberal
regime of Miguel Dávila in Honduras has irked the
State Department by being too friendly with
Zelaya and by getting into debt with Britain. He
is overthrown by former president Manuel Bonilla,
aided by American banana tycoon Sam Zemurray and
American mercenary Lee Christmas, who becomes
commander-in-chief of the Honduran army.
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1912 U.S. Marines intervene in Cuba to put down
a rebellion of sugar workers. 1912 Nicaragua
occupied again by the U.S. to shore up the inept
Díaz government. An election is called to resolve
the crisis there is one candidate, Díaz. The
U.S. maintains troops and advisors in the country
until 1925. 1914 U.S. bombs and then occupies
Vera Cruz, in a conflict arising out of a dispute
with Mexico's new government. President
Victoriano Huerta resigns. 1914 Marines claim
the Dominican Republic as a U.S. protectorate
until 1925. 1915 Marines occupy Haiti to
restore order exists as U.S. protectorate until
1934. 1916 Pancho Villa, in the sole act of
Latin American aggression against the U.S, raids
the city of Columbus, New Mexico, killing 17
Americans. 1917 U.S. troops enter Mexico to
unsuccessfully pursue Pancho Villa. 1917 U.S.
Buy Virgin Islands from Denmark 1917 Marines
intervene again in Cuba, to guarantee sugar
exports during WWI. 1918 U.S. Marines occupy
Panamanian province of Chiriqui for two years to
maintain public order. 1919 U.S. Marines land
during election campaign to ensure order 1921
President Coolidge strongly suggests the
overthrow of Guatemalan President Carlos Herrera,
in the interests of United Fruit. The Guatemalans
comply. 1925 U.S. Army troops occupy Panama
City to break a rent strike and keep order.
1926 Marines, out of Nicaragua for less than a
year, occupy the country again, to settle a
volatile political situation. Secretary of State
Kellogg describes a "Nicaraguan-Mexican-Soviet"
conspiracy to inspire a "Mexican-Bolshevist
hegemony" within striking distance of the Canal.
 
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1929 U.S. establishes a military academy in
Nicaragua to train the National Guard as the
country's army. Similar forces are trained in
Haiti and the Dominican Republic. "Until now
Central America has always understood that
governments which we recognize and support stay
in power, while those which we do not recognize
and support fall.--Undersecretary of State Robert
Olds 1930 Rafael Leonidas Trujillo emerges from
the U.S.-trained National Guard to become
dictator of the Dominican Republic. 1932 The
U.S. rushes warships to El Salvador in response
to a communist-led uprising. President
Martínez, however, prefers to put down the
rebellion with his own forces, killing over 8,000
people (the rebels had killed about 100). 1933
President Roosevelt announces the Good Neighbor
policy. 1933 Marines finally leave Nicaragua,
unable to suppress the guerrilla warfare of
General Augusto César Sandino. Anastasio Somoza
García becomes the first Nicaraguan commander of
the National Guard. 1933 Roosevelt sends
warships to Cuba to intimidate Gerardo Machado y
Morales, who is massacring the people to put down
nationwide strikes and riots. Machado resigns. A
pro-Machado counter-coup is put down by Fulgencio
Batista, who, with Roosevelt's blessing, becomes
Cuba's new strongman. 1934 With U.S. approval,
Sandino assassinated by agents of Somoza, who
assumes the presidency of Nicaragua two years
later. U. S. Secretary of State Cordell Hull
later proposes to intervene in the internal
affairs of Nicaragua. 1936 U.S. relinquishes
rights to unilateral intervention in Panama.
1940 U.S. establishes military bases on
Jamaica, Bahamas, Guyana, others
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1941 Ricardo Adolfo de la Guardia deposes
Panamanian president Arias in a military coup--
first clearing it with the U.S. Ambassador.
1943The editor of the Honduran opposition paper
El Cronista is summoned to the U.S. embassy and
told that criticism of the dictator Tiburcio
Carías Andino is damaging to the war effort.
Shortly afterward, the paper is shut down by the
government. 1944The dictator Maximiliano
Hernández Martínez of El Salvador is ousted by a
revolution the interim government is overthrown
five months later by the dictator's former chief
of police. The U.S.'s immediate recognition of
the new dictator does much to tarnish Roosevelt's
Good Neighbor policy in the eyes of Latin
Americans. 1946 U.S. Army School of the
Americas opens in Panama as a hemisphere-wide
military academy. 1948 José Figueres Ferrer
wins a short civil war to become President of
Costa Rica. Figueres is supported by the U.S.,
which has informed San José that its forces in
the Panama Canal are ready to come to the capital
to end "communist control" of Costa Rica. 1950
U.S. Troops are deployed to crush an independence
rebellion in Ponce, Puerto Rico. 1954 Jacobo
Arbenz Guzmán, elected president of Guatemala,
introduces land reform and seizes idle land
parcels from United Fruit. The CIA trains and
organizes a small force to overthrow him in
Honduras. When Arbenz naively asks for U.S.
military help to meet this threat, he is refused
when he buys arms from Czechoslovakia he labeled
a Communist. Guatemala is "openly and diligently
toiling to create a Communist state in Central
America... only two hours' bombing time from the
Panama Canal." --Life
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1954 (contd) The CIA broadcasts reports
detailing the imaginary advance of the "rebel
army," and provides planes to attack the capital.
The army refuses to defend Arbenz, who resigns.
The U.S.'s hand-picked dictator, Carlos Castillo
Armas, outlaws political parties, establishes the
death penalty for strikers, and undoes Arbenz's
land reforms. Over 100,000 citizens are killed in
the next 30 years of military rule. "This is the
first instance in history where a Communist
government has been replaced by a free one."
--Richard Nixon 1957 Eisenhower establishes
Office of Public Safety to train Latin American
police forces. 1959 Fidel Castro takes power in
Cuba. Several months earlier he had undertaken a
triumphal tour through the U.S., which included a
CIA briefing on the Red menace. "Castro's
continued tawdry little melodrama of invasion."
--Time, of Castro's warnings of an imminent U.S.
invasion 1960 Eisenhower authorizes covert
actions to get rid of Castro. Among other things,
the CIA tries assassinating him with exploding
cigars and poisoned milkshakes. Other covert
actions against Cuba include burning sugar
fields, blowing up boats in Cuban harbors, and
sabotaging industrial equipment. 1960 The Canal
Zone becomes the focus of U.S. counterinsurgency
training. 1960 A new junta in El Salvador
promises free elections Eisenhower, fearing
leftist tendencies, withholds recognition. A more
attractive right-wing counter-coup comes along in
three months. "Governments of the civil-military
type of El Salvador are the most effective in
containing communist penetration in Latin
America." --John F. Kennedy, after the coup
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1960 Guatemalan officers attempt to overthrow
the regime of Presidente Fuentes Eisenhower
stations warships and 2000 Marines offshore while
Fuentes puts down the revolt. Another source
says that the U.S. provided air support for
Fuentes. 1960s U.S. Green Berets train
Guatemalan army in counterinsurgency techniques.
Guatemalan efforts against its insurgents include
aerial bombing, scorched-earth assaults on towns
suspected of aiding the rebels, and death squads,
which killed 20,000 people between 1966 and 1976.
U.S. Army Col. John Webber claims that it was at
his instigation that "the technique of
counter-terror had been implemented by the army."
1961 U.S. organizes force of 1,400 anti-Castro
Cubans and sends it to the Bay of Pigs. Castro's
army routs it. 1961 CIA-backed coup overthrows
elected Pres. J. M. Velasco Ibarra of Ecuador,
who has been too friendly with Cuba. 1962 CIA
engages in campaign in Brazil to keep João
Goulart from achieving control of Congress.
1963 CIA-backed coup overthrows elected social
democrat Juan Bosch in the Dominican Republic.
1963 A far-right-wing coup in Guatemala,
apparently U.S.-supported, forestalls elections
in which "extreme leftist" Juan José Arévalo was
favored to win. 1964 João Goulart of Brazil
proposes agrarian reform and the nationalization
of the oil industry. Shortly thereafter, he is
ousted by a U.S.-supported military coup.
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1964 The free market in Nicaragua The Somoza
family controls "about one-tenth of the
cultivable land in Nicaragua, and just about
everything else worth owning, the country's only
airline, one television station, a newspaper, a
cement plant, textile mill, several sugar
refineries, half-a-dozen breweries and
distilleries, and a Mercedes-Benz agency." --Life
World Library 1965 A coup in the Dominican
Republic attempts to restore Bosch's government.
The U.S. invades and occupies the country to stop
this "Communist rebellion," with the help of the
dictators of Brazil, Paraguay, Honduras, and
Nicaragua. 1966 U.S. sends arms, advisors, and
Green Berets to Guatemala to implement a
counterinsurgency campaign. "To eliminate a few
hundred guerrillas, the government killed perhaps
10,000 Guatemalan peasants." --State Dept. report
on the program 1967 A team of Green Berets is
sent to Bolivia to help find and assassinate
Cuban revolutionary, Che Guevara. 1968 Gen.
José Alberto Medrano, who is on the payroll of
the CIA, organizes the ORDEN paramilitary force,
considered the precursor of El Salvador's death
squads. 1970 Salvador Allende elected in Chile.
Suspends foreign loans, nationalizes foreign
companies. For the phone system, pays ITT the
company's minimized valuation for tax purposes.
The CIA provides covert financial support for
Allende's opponents, both during and after his
election. 1972 U.S. stands by as military
suspends an election in El Salvador in which
centrist José Napoleón Duarte was favored to win.

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1973 U.S.-supported military coup kills Allende
and brings Augusto Pinochet to power. Pinochet
imprisons well over a hundred thousand Chileans
(torture and rape are the usual methods of
interrogation), terminates civil liberties,
abolishes unions, extends the work week to 48
hours, and reverses Allende's land reforms.
1973 Military takes power in Uruguay, supported
by U.S. The subsequent repression reportedly
features the world's highest percentage of the
population imprisoned for political reasons.
1974 Office of Public Safety is abolished when
it is revealed that police are being taught
torture techniques. 1976 Election of Jimmy
Carter leads to a new emphasis on human rights in
Central America. Carter cuts off aid to the
Guatemalan military and reduces aid to El
Salvador. 1979 Ratification of the Panama Canal
treaty which is to return the Canal to Panama by
1999. 1980 A right-wing junta takes over in El
Salvador. U.S. begins massively supporting El
Salvador, assisting the military in its fight
against FMLN guerrillas. Death squads
proliferate Archbishop Romero is assassinated by
right-wing terrorists 35,000 civilians are
killed in 1978-81. The rape and murder of four
U.S. churchwomen results in the suspension of
U.S. military aid for one month. The U.S. demands
that the junta undertake land reform. Within 3
years, however, the reform program is halted by
the oligarchy.
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1980 The U.S., seeking a stable base for its
actions in El Salvador and Nicaragua, tells the
Honduran military to clean up its act and hold
elections. The U.S. starts pouring in 100
million of aid a year and basing the contras on
Honduran territory. 1981 The CIA steps in to
organize the contras in Nicaragua, who started
the previous year as a group of 60 ex-National
Guardsmen by 1985 there are about 12,000 of
them. 46 of the 48 top military leaders are
ex-Guardsmen. The U.S. also sets up an economic
embargo of Nicaragua and pressures the IMF and
the World Bank to limit or halt loans to
Nicaragua. 1981 Gen. Torrijos of Panama is
killed in a plane crash. There is a suspicion of
CIA involvement, due to Torrijos' nationalism and
friendly relations with Cuba. 1982 A coup
brings Gen. Efraín Ríos Montt to power in
Guatemala, and gives the Reagan administration
the opportunity to increase military aid. 1983
Another coup in Guatemala replaces Ríos Montt.
The new President, Oscar Mejía Víctores, was
trained by the U.S. and had cleared his coup
beforehand with U.S. authorities. 1983 U.S.
troops take over tiny Granada, intervening
shortly after a coup has overthrown the previous,
socialist leader. One of the justifications for
the action is the building of a new airport with
Cuban help, which Granada claimed was for tourism
and Reagan argued was for Soviet use. Later the
U.S. announces plans to finish the airport... to
develop tourism. 1983 Boland Amendment
prohibits CIA and Defense Dept. from spending
money to overthrow the government of Nicaragua.
Reagan sends in forces to topple the Nicaraguan
government shortly thereafter.
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1984 CIA mines three Nicaraguan harbors.
Nicaragua takes this action to the World Court,
which brings an 18 billion judgment against the
U.S. The U.S. refuses to recognize the Court's
jurisdiction in the case. 1984 U.S. spends 10
million to orchestrate elections in El Salvador
however, the military in El Salvador has already
declared that it will not answer to the elected
president. 1989 U.S. invades Panama to dislodge
the CIA-trained Manuel Noriega, an event which
marks the change of strategy from thwarting
Communism to waging a war on drugs. 1994 U.S.
sends troops to support a naval blockade against
the military government of Haiti. The troops
restore President Aristide to office three years
after coup 1996 The U.S. battles global
Communism by extending most-favored-nation
trading status for China, and tightening the
trade embargo on Castro's Cuba. 2000 Plan
Colombia, the lynchpin of the War on Drugs,
begins 2002 A U.S.-led commando operation coup
fails in an attempt to remove freely-elected
left-populist president Hugo Chavez of
Venezuela 2004 President George W. Bush tightens
travel and financial restrictions on Cuba 2004
Ex-President Aristide of Haiti is re-elected amid
great controversy. U.S. forces enter Haiti to
keep order. Shortly thereafter, Aristide
disappears, claiming he was kidnapped by the
United States. U.S. claims he resigned from
office.
22

• 101?

23
Eventually, enough is enough
Rise of Populism

• Mexico 1910, 1938 Oil
• Nicaragua 1927-33 Coffee, UFCO
• Brazil 1930 Coffee, Sugar
• Panama 1947 Mili bases, PCZ
• Suriname 1950 Mining
• Bolivia 1951 Tin, Oil, Silver
• Guyana 1959 Sugar, Coffee
• Guatemala 1954 UFCO
• Honduras 1955 UFCO
• Cuba 1959 Sugar, Tobacco

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Why?
Land Reform. Workers Rights.
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Land Reform?

• Legacy of Latifundia / Haciendas
• Wealthy landowners want to maintain the status
  quo (they are in the minority)
• Privatized and corporatized
• Many rural laborers want Minifundia
• Privatized (small family farms), not corporatized
• Natives prefer Ejidos
• Collectivized, but not Communist

So whos going to win?
26
Sign of the Times

• Privatization ()
• Owned by individual or corporation
• Corporatism ()
• Private, but in the hands of a company, not an
  individual
• VS.
• Collectivism (?)
• Done for the common good, could be owned by a
  group (co-op), a tribe, a state, etc.
• Communism (not for )
• State-owned

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What do you do?

• Q If you were a non-land owner / peasant and had
  everything you owned taken away, including your
  land, your money, and your freedoms, would you
• Be fine with the status quo.
• Move to a neighboring country.
• Try to change the system from within.
• Support a collectivist movement.
• Something drastic?

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Follow the model

• Business Government
• Government Business
• No unions
• Low, low wages
• Slave-like conditions
• No rights (beatings, torture, death)
• Often worked for coupons / Company Money
• No other options
• No ownership of land for workers

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Hershey Chocolate Factory(rail line, etc.)
Cuba 1915
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Sugar Production Land Tenure Cuba, 1940
55
22.5 15 5
2.5
33
Export Destinations(1937)
34
Cuba 1903

• U.S. helps Cuban independence from Spain
• Cuba wants independence, however
• U.S. has major sugar investments in Cuba
• U.S. owns / controls 70-90 of Cuban sugar
  American Sugar Refining Company
• U.S. keeps military in Cuba to prevent rebellion
  / protect investments (Establishment of
  Guantanamo Military Base)
• Teddy Roosevelt and Gunboat Diplomacy

35
1903 Platt Amendment

• Cuba agrees to
• Give U.S. naval base in Cuba Guantánamo
  BayForever!!
• Cuba would not transfer Cuban land to any country
  other than the U.S.,
• Allow U.S. intervention in Cuban affairs whenever
  the U.S. deems necessary
• Can never negotiate any treaties with any country
  other than with the United States

36
The Golden Rule

• 99 of all major reform efforts in Latin
  America legal reform, establishment of
  worker-owned businesses, major changes in labor
  rules, etc., eventually failed
• Powerful military / corporate actions (Monroe
  Doctrine) with opposing interests
• Corruption of leaders (both sides)
• Lack of financial / political resources
• Lack of alternatives
• Lack of education / information / interest
  outside of immediate area

37
all but one! Cuba

• Since Jan 1, 1959 through today, Cuba is the
  exception to nearly every rule about Latin
  America (except language)
• Overthrew American-sponsored leader Fulgencio
  Batista
• Collectivized, then Communized with the backing
  of the Soviet Union
• Only Lat Am country to lead a successful
  challenge to the Monroe Doctrine?

38
Pre-Castro Cuba

• 75 of Cuba's farmland owned by U.S. companies
  and / or foreign individuals
• Corruption Batista placed
• into office under U.S.-
• supported coup (Corollary)
• Havana was the Latin Las
• Vegas in the 30s, 40s, 50s
• Prohibition in U.S.
• Gambling (Mafia)
• Prostitution
• Casinos mostly U.S.-owned

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1/1/59 Roosevelt Corollary Goes into Action!

• Castro Takes Over
• Wealthy Cubans flee
• To Miami, Guatemala, NY
• Castro redistributes land to over 200,000
  families
• Eisenhower plans invasion
• CIA Director Allen Dulles
• CIA-trained Cuban exiles
• Some say Mafia involved
• JFK becomes president
• 1961 Bay of Pigs Invasion

40
1962 Cuban Missile Crisis

• 13 day standoff
• Khrushchev Blinked

41
Embargo 1963
42
1963 The Embargo Begins

• U.S. Federal Law
• - No ECONOMIC exchange of any sort with Cuba
  ILLEGAL!
• Economic embargo still in effect
• The rest of the world trades with Cuba
• What about the Roosevelt Corollary
• - Is it in our interest to continue the
• embargo or should we trade with Cuba?

43
BACARDI

• Bacardi was originally a Cuban company
• They saw the writing on the wall (Cuban
  Revolution) and left

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Land of Paradox!
47
Currencies!
Cuban Convertible Pesos

• Cuban Peso
• (not convertible)

U.S. Dollars US Illegal tender since 1963 Cuba
Illegal since 2004, charge 10 to convert
48
Food!
For Cuba
For the rest of the world
49
Architecture!

• Havana

Wash D.C.
50
Travel!

• U.S. ENTRY / EXIT REQUIREMENTS / TRAVEL
  TRANSACTION LIMITATIONS The U.S. Treasury Dept
  requires that persons subject to U.S.
  jurisdiction be licensed to engage in any
  travel-related transactions related to travel to,
  from, and within Cuba.  Transactions related to
  tourist travel are not licensable.  This
  restriction includes tourist travel to Cuba from
  or through a third country such as Mexico or
  Canada.  Travelers who fail to comply with
  Department of Treasury regulations will face
  civil penalties and criminal prosecution upon
  return to the United States and may face up to a
  250,000 fine and up to 10 years in jail.

This is a U.S. law! Not a Cuban law.
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Cuba
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The UN Vote on the Embargo (11/13/12)

• FOR AGAINST
• United States 188 countries
• Israel around the
• Palau world

(3 abstentions)
21 consecutive years that the UN has voted
overwhelmingly to end the embargo should it
continue?
http//www.washingtonpost.com/world/the_americas/u
n-once-again-votes-to-condemn-us-embargo-against-c
uba/2012/11/13/8c3b15b0-2dbb-11e2-b631-2aad9d9c73a
c_story.html/
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The Rest of Latin America

• Wealthy landowners / MNCs remain in charge
• Little successful land reform
• World becoming aware
• Lack of Access to Land Poverty
• Efforts begin to decrease poverty
• From Above (Golden Rule Economics)
• Corporations and Governments
• International Financial Institutions (WB, IMF,
  WTO)
• International Agencies (U.N., USAID, etc.)
• From Below
• Non-governmental organizations (NGOs)
• Other non-government-led efforts

55
Non-Governmental Organizations (NGOs)(from
below)

• Amnesty International
• OxFam
• Rainforest Alliance
• World Wildlife Fund
• The Nature Conservancy
• Heifer Project
• Farmer-to Farmer

Grassroots organizations
56
Free Trade Fair Trade?

• Local producers have difficulty competing
• - Less access to quality land
• - Government subsidies / price supports
• - Dumping excess products on Lat Am

57
Coca

• Andean in climate and culture
• Domesticated by Incas
• Natives have been growing and using coca plants
  for centuries
• Chewing on leaves relieves hunger, fatigue,
  altitude sickness part of native rituals

58
Q Are Coca and Cocaine the same thing?
Q Are Corn and Whiskey the same thing?
The Refinement / Distillation process is the key!
59
Cocaine was legal in the U.S. prior to
prohibition!
60
Coca Cultivation and Leaf Production 1996 and
2000

• Coca grown on small plots in Peru and Bolivia
  (largely by natives)
• Coca grown on large estates in Colombia (drug
  lords)

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Coca Q Is it OK or not OK to grow coca plants?
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Plan Colombia
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Source http//justf.org/Country?countryColombia
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Colombia Homicide Rates (1975-2005)
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2010 Homicide Rates (by country)
Colombia 7 in world
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The Geography of the Global Drug Trade
Colombia through Mexico / Caribbean to the
United States / Europe
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Cocaine Flows to the United States Dual Corridors
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(Juárez)
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Plan Colombia US contributed BILLIONS of to
South America since 1999 to help eradicate
cocaine production
Supply driven? Demand driven?
Q Will reducing the supply eliminate the demand?
Or if we reduce demand will that limit the
supply?
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Maybe theres another way to intervene?
http//www.smithsonianmag.com/people-places/The-Se
crets-Behind-Your-Flowers.html