MarketBanana republic
Company Profile

Banana republic

In political science, the term banana republic describes a politically and economically unstable country with an economy dependent upon the export of natural resources.

Etymology
'' (1904 edition) In the 20th century, American writer O. Henry (William Sydney Porter, 1862–1910) coined the term banana republic to describe the fictional Republic of Anchuria in the book Cabbages and Kings (1904), a collection of thematically related short stories inspired by his experiences in Honduras, whose economy was heavily dependent on the export of bananas. He lived there for six months until January 1897, hiding in a hotel while he was wanted in the United States for embezzlement from a bank. In the early 20th century, the United Fruit Company, a multinational corporation, was instrumental in the creation of the banana republic phenomenon. Together with other American corporations, such as the Cuyamel Fruit Company, and leveraging the power of the U.S. government, the corporations created the political, economic, and social circumstances that led to a coup of the locally elected democratic government that established banana republics in Central American countries such as Honduras and Guatemala. No official apology has ever been done by any banana company or the U.S. with only the C.I.A. backed dictator of Guatemala apologizing in 2011. ==Origin==
Origin
The history of the banana republic began with the introduction of the banana fruit to the United States in 1870, by Lorenzo Dow Baker, captain of the schooner Telegraph, who bought bananas in Jamaica and sold them in Boston at a 1,000% profit. The banana proved popular with Americans, as a nutritious tropical fruit that was less expensive than locally grown fruit in the U.S., such as apples; in 1913, 25 cents () bought a dozen bananas, but only two apples. In 1873, to produce food for their railroad workers, American railroad tycoons Henry Meiggs and his nephew, Minor C. Keith, established banana plantations along the railroads they built in Costa Rica; recognising the profitability of exporting bananas, they began exporting the fruit to the Southeastern United States. By the late 19th century, three American multinational corporations (the UFC, the Standard Fruit Company, and the Cuyamel Fruit Company) dominated the cultivation, harvesting, and exportation of bananas, and controlled the road, rail, and port infrastructure of Honduras. In the northern coastal areas near the Caribbean Sea, the Honduran government ceded to the banana companies of a laid railroad, despite there being neither passenger nor freight railroad service to Tegucigalpa, the capital city. Among the Honduran people, the United Fruit Company was known as El Pulpo ("The Octopus" in English), because its influence pervaded Honduran society, controlled their country's transport infrastructure, and manipulated Honduran national politics with anti-labour violence. Honduras overthrew the civil government of Honduras to install a military government friendly to foreign businesses. In the early 20th century, Moldovan-American businessman Sam Zemurray (founder of the Cuyamel Fruit Company) was instrumental in establishing the "banana republic" stereotype. He entered the banana-export business by buying overripe bananas from the United Fruit Company to sell in New Orleans. In 1910, Zemurray bought in the Caribbean coast of Honduras for use by the Cuyamel Fruit Company. In 1911, Zemurray conspired with Manuel Bonilla, an ex-president of Honduras (1904–1907), and American mercenary Lee Christmas, to overthrow the civil government of Honduras and install a military government friendly to foreign businesses. The mercenary army of the Cuyamel Fruit Company, led by Christmas, effected a ''coup d'état'' against President Miguel R. Dávila (1907–1911) and installed Bonilla (1912–1913). The United States ignored the deposition of the elected government of Honduras by a private army, justified by the U.S. State Department's misrepresenting Dávila as too politically liberal and a poor businessman whose management had indebted Honduras to Great Britain. This was a geopolitically unacceptable circumstance in light of the Monroe Doctrine. The ''coup d'état'' was a consequence of the Dávila government's having slighted the Cuyamel Fruit Company by colluding with the rival United Fruit Company to award them a monopoly contract for the Honduran banana in exchange for the UFC's brokering of U.S. government loans to Honduras. The political instability consequent to the ''coup d'état'' stalled the Honduran economy, and the unpayable external debt (c. US$4 billion) of Honduras was excluded from access to international investment capital. That financial deficit perpetuated Honduran economic stagnation and perpetuated the image of Honduras as a banana republic. The inherited foreign debt functionally undermined the Honduran government, which allowed foreign corporations to manage the country and become sole employers of the Honduran people. The American fruit companies controlled the economic infrastructure (road, rail, and port, telegraph and telephone) they had built in Honduras. The U.S. dollar went on to become the legal-tender currency of Honduras; Christmas became commander of the Honduran Army, and later was appointed U.S. Consul to Honduras. 23 years later, after corporate interest among the American businessmen, Zemurray assumed control of the rival United Fruit Company in 1933. During the 1950s, the United Fruit Company sought to convince the governments of U.S. presidents Harry S. Truman (1945–1953) and Dwight D. Eisenhower (1953–1961) that the popular, elected government of President Jacobo Árbenz of Guatemala was secretly pro-Soviet for having expropriated unused "fruit company lands" to landless peasants. In the Cold War (1945–1991) context of the proactive anti-communist politics exemplified by U.S. senator Joseph McCarthy in the years 1947–1957, geo-political concerns about the security of the Western Hemisphere facilitated Eisenhower's ordering and authorising Operation Success. The U.S. Central Intelligence Agency deposed Árbenz' democratically elected government by means of a coup d'état in 1954, and installed the pro-business government of Colonel Carlos Castillo in its place. Castillo was assassinated by a presidential guard three years later. A mixed history of elected presidents and puppet-master military juntas were the governments of Guatemala in the course of the 36-year Guatemalan Civil War (1960–1996). However, in 1986, at the 26-year mark, the Guatemalan people promulgated a new political constitution, and elected Vinicio Cerezo (1986–1991) president; then Jorge Serrano Elías (1991–1993). Ecuador In the early 20th century, Ecuador was primarily a cocoa exporting country; however, due to diseases and competition from other exporters, the country sought an alternative crop that could serve as a significant export. Ecuador became a major producer of bananas due to its comparative advantage in fertile lowlands, low labor costs, and skilled workers. Additionally, Ecuador has many environmental advantages, such as a lack of natural disasters and no excess humidity that may allow diseases to fester. The minimal disease prevalence has decreased pesticide costs in Ecuador compared to other banana republic countries. The world's major importer of bananas is the European Union. Ecuador produces its bananas during the European's highest demand season for bananas, which is December through May, further contributing to Ecuador's advantage in the banana market. Ecuador is the world's largest exporter of bananas, representing over a third of international banana sales, and banana export revenues were a quarter of Ecuador's total value of merchandise exports. Ecuador is considered a banana republic country due to its dependence on the banana and multinational corporations for the functionality of its economy. Still, it differs in a few characteristics of the typical banana republic country. Instead of the major banana corporations that contain large plantations throughout the country, such as Dole, Chiquita, or Del Monte, Ecuador's banana production mainly comes from over five thousand small-holder farmers. == Banana market ==
Banana market
Market structure The banana market structure is oligopolistic due to five major corporations having major control over the market. World trade is dominated by Chiquita Brands, Dole Food Company, Del Monte Fresh Produce, Noboa, and Fyffes, who collectively control over three quarters of the banana market. Consumer preferences Banana republic countries depend on exports, so consumer preferences play a hefty factor in how bananas are produced. Banana exporting countries face significant losses due to unmarketable bananas. There are certifications bananas can receive to be more appealing for consumers, such as the Fair Trade, Organic, and Rainforest Alliance certifications that market sustainability, fair labor conditions, or different growing methods. ==Modern era==
Modern era
Pesticides Chiquita Brands International and the Dole Food Company have shifted their focus of maintaining the environments on their plantations and making agriculture more efficient by breeding and growing more resilient versions of foods, such as Cavendish bananas. Both companies have been working to employ better farming practices, especially regarding the use of pesticides, as both companies have received heavy criticism for the amount and effects of the pesticides they have used on their products. Although the pesticides do not generally represent a safety concern for consumers abroad, they can be harmful to residents and the ecosystems in which they are used. Many banana farmers from Central and South America were exposed to dibromochloropropane (DBCP) from the 1960s to 1980s, which can lead to birth defects, elevated risk of cancer, central nervous system damage, and most commonly, infertility. Labour conditions and treatment of workers Both the Dole Food Company and Chiquita Brands International have argued that their labourers and farmers are being treated much better in the 21st century than they were during the height of the banana republics. While workers do have better conditions than they did during the 20th century, these large corporations allegedly still suppress labour union movements through intimidation and harassment. Working conditions on banana plantations are dangerous, with very low wages and long hours in difficult conditions. The workers are not cared for and are often replaced as they have very little policy about job security in the case of sickness or injury. The plantation workers are also exposed to toxic pesticides on a daily basis, causing harm. Unionists who pressure these corporations for better working conditions are commonly targeted and forced to leave their positions. The workers also receive no benefits, and as the plantations are in countries with lax safety regulations, there are minimal health policies. Women banana workers During the 1970s and 1980s, men migrated to cities for work, leaving women available to work for multinational companies on plantations. Women represent about a fifth of the workforce in the banana industry, and are known as Bananeras, or women workers on banana plantations. Men generally work in the fields while women have jobs that pertain to selecting, washing, and packaging the bananas. Due to a gendered division of labor, women often work more than one job for income. Jobs on banana plantations that pay more are often more physically difficult and are reserved for men. However, there is little difference in the money paid to men and women for the same tasks completed. Women primarily package bananas, where pay is measured by the amount of boxes that are filled with bananas at the end of each day. The roles of packagers depend on the scale of production and ability of the producer to export bananas, so many women are contracted once or twice a week to work. There have been criticisms of women working in direct contact with pesticides, fungicides, herbicides, and insecticides through the application of chemicals and washing bags that contain insecticides. Pregnant and breastfeeding women are particularly affected, as pregnant women will work with chemicals until the later stages of pregnancy and will return to work after the birth. Women banana workers often face the challenge of being a caretaker and bananera, as there is limited access to childcare, limited education and training, and a difficulty of working more than one job. Women are often at risk of sexual assault and domestic violence due to issues in management of Occupational Health, Safety, and Environment. An agreement was reached in April 2001 between the United States and EU. The EU implemented a system of importation based on historical licensing, with underdeveloped American countries and ACP countries having their own categories of licenses, designated tariffs, and quotas. Chiquita Brands and Dole Food Company together share 44% of the licenses. Prevalent diseases Diseases such as the Panama Disease (fusarium wilt), black sigatoka leaf spot, black leaf streak disease, banana bunchy top disease, Cardano, and Moko disease create challenges for banana republic countries as they generate massive losses for banana farms. Diseases in banana production produce more production costs than any other biotic factor. Fusarium wilt can survive for over thirty years in the soil, threatening a rapid spread of disease as infected soil can be found on tires, shoes, tools, run-off water, and irrigation systems. The most popular banana on the commercial market is the Cavendish banana, a type of banana with no genetic variation to other bananas of its variety. The cavendish is not seeded, and propagates by producing vegetative suckers that can be removed from the parents and planted separately. New sprouts are clones of the parent plant, unless they have a genetic mutation, making them more susceptible to disease. The most popular banana before the Cavendish, the Gros Michel variety, was wiped out by Panama disease due to a lack of genetic evolution to become more resistant to the disease. The primary solution used are pesticides and agrochemicals. However, many pesticides have various negative effects on health, the environment, and economy. Pesticides and other chemicals to ward off disease also account for almost a third of production costs on banana farms. Others have proposed genetic engineering, but it is a controversial topic. Other solutions include removal of affected leaves, but this can affect the period when bananas are harvested for export, known as the green period. Management systems can also be improved so communication is clear between farmers and different levels of government about the spread of diseases. Modern Honduras and Guatemala Honduras and Guatemala have faced significant challenges with governmental corruption as a result of the dictatorships backed by the U.S. government, Effraín Ríos Montt (1982–1983) for Guatemala, and Roberto Suazo Córdova (1982–1986) for Honduras. The political instability caused by the dictators falling and being replaced with democratically elected presidents left the government with very little power, leading to corruption of the government and the rise of drug cartels. Today, the governments of Guatemala and Honduras still have very little power, as drug cartels control much of the land and are allied with corrupt officials and law enforcement officers. These drug cartels serve as the main transporters of cocaine and other drugs from Central and South Americas to the United States. This has also caused extreme levels of violence, with Honduras having one of the highest homicide rates in the world: 38 per 100,000 people according to UNODC. Guatemala and Honduras also continue to have very low economic diversity, with their primary exports being clothing items and food items. ==In art==
In art
Poetry denounced the corporate subjugation of underdeveloped Americas. In his book Canto General (General Song, 1950), Chilean poet Pablo Neruda (1904–73) denounced foreign corporate political dominance of Central and South American countries with the four-stanza poem "La United Fruit Co."; the second-stanza reading in part: ... The Fruit Company, Inc. Reserved for itself the most succulent, The central coast of my own land, The delicate waist of the Americas. It rechristened its territories As the "Banana Republics", And over the sleeping dead, Over the restless heroes Who brought about the greatness, The liberty and the flags, It established a comic opera ... Novels The novel One Hundred Years of Solitude (1967), by Gabriel García Márquez, depicts the imperialistic capitalism of foreign fruit companies as voracious socio-economic exploitation of natural resources of the fictional South American town of Macondo and its people. Domestically, the corrupt national government of Macondo abets the business policies and labour practices of the foreign corporations, which brutally oppress the workers. In the novel, a specific scene depicts the real-life 1928 Banana Massacre, related to the death of workers who struck against poor conditions in banana plantations in Colombia. ==Modern interpretations==
Modern interpretations
" United States The Kingdom of Hawaii, now the U.S. state of Hawaii, was once an independent country under political pressure from American sugar plantation owners, who in 1887 forced King Kalākaua to write a new constitution that benefited American businessmen at the expense of the working class. This constitution is known as the "Bayonet Constitution" due to its threat of force. In the case of Hawaii, the U.S. was also interested in the strategic military significance of the islands, leasing Pearl Harbor Post-colonial states Countries that obtained independence from colonial powers in the 20th century have, at times, tended to share traits of banana republics due to the influence of large private corporations in politics; examples include the Maldives (resort companies) and the Philippines (the tobacco industry, the U.S. government, and corporations). On 14 May 1986, then Australian Treasurer Paul Keating stated that Australia might become a banana republic. This has received both commentary and criticism and is seen as part of a turning point in Australia's political and economic history. Pakistan In March 2023, PTI Chairman and former prime minister of Pakistan Imran Khan said his country had "become a banana republic". ==See also==
tickerdossier.comtickerdossier.substack.com