Thread: Land Reforms

1/ The term BANANA REPUBLIC was popularized locally by @ProfJNMoyo as minister of info from 2000-4.

Moyo’s refrain was “Zimbabwe is not a banana republic.”

I agree with Moyo.

We will never allow Zim to be such.

But what is a BANANA REPUBLIC?

2/ The conversion of a country into an extractive banana republic is function of western imperialism. Specifically, the United Fruit Company (UFC).

By 1930, UFC controlled vast tracts of land in Latin America: Costa Rica, Colombia, Guatemala Etc

It exported bananas to the US.

3/ It owned 3.5 mln acres in Latin America. That’s half the size of Lesotho. Some of it was used to grow bananas.

In Guatemala, UFC was the single largest landowner, at the expense of the people.

UFC has so much power over governments hence the term banana republic was used.

4/ A banana republic is therefore, a country whose government is just a corrupt puppet of foreign corporations who are there to exploit plantation land, and the large impoverished working class.

This is exactly what we fought against in Zimbabwe - but let me go on ...

5/ In 1933, Sam Zemurray made a hostile takeover of the company. In the same period, multiple labour strikes in Latin American countries led to major reforms against worker exploitation by foreign corporations including UFC.

6/ Throughout it’s history, UFC was notorious for unbridled exploitation of workers, anti-competitive behavior, & bribing govts for less taxes/favours.

Latin Americans referred to the company as an Octopus (El Pulpo).

Countries it controlled became known as Banana Republic.

7/ Guatemala & Land Reforms.

In 1950, Jacobo Arbenz was elected president of Guatemala. He immediately implemented social democratic reforms such as allowing workers unions, allowing political parties etc.

Most importantly, his major agenda was LAND REFORMS.

8/ Arbenz’s LAND REFORMS expropriated uncultivated land, giving it to poor indigenous workers. It was a great scheme of land empowerment.

At least 500 000 farmers benefited from the Land Reforms, especially the indigenous previously dispossessed by Spanish colonial invaders.

9/ Empowering Indigenous impoverished people of Guatemala is such a noble scheme that every right thinking person should support - right? Not so fast.

There was one problem. Not everyone was happy that locals should get land. It was the American owners of United Fruit Company.

10/ You see, UFC was the single largest landowner in Guatemala. Guatemala was part of UFC’s banana republic.

So they would have none of it. Empower who? Dirty, poor, indigenous slave labourers? No way, they vowed.

11/So WHAT did UFC DO?

Before we go there. Arbenz who was of European decent paid attention to aspirations of the indigenous Mayan people, stating that:

“I am sure the great majority of Guatemalans prefer to be a poor nation, but free and not a rich colony that is enslaved”.

12/ Arbenz had drafted the land reform bill himself, with help from some economists. It was passed on 1952. Land was expropriated from large landowners to local peasants to empower them & raise capital for infrastructure. The World Bank had denied Guatemala loans at US’s behest.

13/ Arbenz himself was affected by his own land reform program. He owned land and had to lose 7 Square KMs to expropriation.

By 1954, a sixth of Guatemalans had received land from the land reform process - 1.4 mln acres in total.

14/ Agric bank, BNA was formed. It issued $9million in loans & developed a reputation of being highly efficient & had an unusually high repayment rate.

So high was the repayment rate that of the $3.3 mln loans issued between March to Nov 1953, $3mln had bn repaid by June 1954.

15/ The land reforms resulted in:
•increases in farm mechanization.
•Significant increase in standards of living especially among poor indigenous people.
•Increase in productivity.

16/ BUT...UFC owned 220000 hectares & only used 15%. It had to give up the rest. 81000ha was expropriated. It got twice the amount it had paid for the land as compensation.

But UFC had friends in high places back home where it exported bananas. Some of them owned it’s shares.

17/ UFC lobbied its friends in high places & ran a propaganda campaign.

US Sec of State John Dulles had been a lawyer for the company. So was his brother Allen Dulles who headed the spy agency.

US was concerned that successful reforms would trigger reforms elsewhere.

18/ So it was that a REGIME CHANGE campaign was mounted by Eisenhower’s gvt against the democratically elected government of Jacobo Arbenz.

The wife of UFC’s Director of public relations was Eisenhower’s personal assistant.

In 1953, a regime change operation was launched.

19/ A military invasion by Guatemalan mercenaries in exile was launched to topple the gvt. When it was leaked, the Eisenhower gvt denied it, so did the western media.

In 1954, a military invasion was launched and Arbenz was forced to resign.

20/ After taking power as a tool of regime change instigators, Carlos Castillo Armas wasted no time.

He quickly reversed the land reforms. He reversed 95% of the land given to indigenous people.

Significantly, he restored all the land expropriated back to United Fruit Co.

21/ After the reversal of land reforms, a long period of civil war ensued in Guatemala - from 1960-1996 pitting the government + landowners on one side & poor indigenous insurgents on the other. Reason - economic injustice & racial discrimination. 200000 died in the war.

22/ Moral of the story?

•Why is US so concerned about Zimbabwe’s land?
•The US is very far away - why would Chris Coons spent several hours flying to Zimbabwe? For what? Human rights?
•Why is Gweshegweshe so concerned about people he didn’t know or care about 2 yrs ago?

23/ Why is US & Europe so triggered by land reforms to the point of mounting regime change programs?

Why do foreigners sponsor stooges like these ones, flying them to DC?

Why are local puppets of foreign interests so intent on making Zimbabwe a banana republic?