[net.politics] bananas and exploitation

mjk@ttrdc.UUCP (Mike Kelly) (05/16/85)

 >From: colonel@gloria.UUCP (Col. G. L. Sicherman)
 >I think that the
 >issue is whether the U.S. is forcing Central America to _produce_
 >bananas cheaply, by depressing wages.

Or, more precisely, what is the effect of the U.S. policy of supporting
stable dictatorships in Central America and around the world?  These
dictatorships crush opposition.  One powerful form of opposition is
trade unions.  Without trade unions, wages are generally held at a 
lower level than they would be if strong trade unions were part of the
scene.  The products that result from these wage-depressed industries
are then sold on the world market at a lower price than similar products
from countries with strong trade unions.  So it is that Korean steel, for
example, is much cheaper than U.S. steel.  Now that's partly due to 
superior technology, but it's also partly due to the repression of trade
unions in that country.  The U.S. supports the Korean dictatorship with
military and economic aid.

It is a perverse truth that U.S. foreign policy hurts Americans indirectly.
U.S. workers are pressured to work for lower "world wages" that are
low because trade  unions are repressed in other countries with the support
of the U.S.

In the case of the bananas, a different dynamic is at work.  Large areas of
land in Central America are dedicated to growing cash crops for export, like
bananas and coffee, rather than crops for local consumption.  The foreign
currency is needed in order to pay off bank loans and purchase products such
as oil and non-domestic minerals.  In some cases, the population goes hungry
because farmland is being used to grow these cash crops rather than the food
needed to feed the nation's hungry.

What's the solution?  Hard to say, since the problem is very complex.  The
Brandt Commision in Europe suggested a massive transfer of wealth and
technology from North to South, both for humanitarian reasons and to help
stabilize an obviously very volatile situation; we can't forever have massive
wealth coexisting with terrible poverty without an explosion.  Those looking
for the forces behind the revolutions in Central America need look no further
than that.  

Mike Kelly