Monday, October 30, 2006

Mark Moberg - Responsible Men and Sharp Yankees

Essence of the essay:

Moberg discusses the strategies employed by United Fruit to monopolize the banana export industry in British Honduras (known today as Belize) and how these strategies affect the relationship between "the colonial state, traditional elites, and the United Fruit Company. In the essay he traces the history of United Fruit in British Honduras from the time the company was invited to operate early in the 20th century until the time the company abandoned their contract in 1920.

Short summary:

The intentions of United Fruit are made clear in the essay; the company moves in, develops a monopoly, and exploits the land of British Honduras. A contract between United Fruit Company and British Honduras was formed. United Fruit was to produce and export agriculture for 25 years and in return the government would provide the company cheap land and a new railway system for transportation of goods. The company was able to buy land for $1 per acre, whereas private farmers had to pay nearly $8 per acre.

The land was infected with Panama Disease circa 1914 and the disease slowly spread causing most of the land owned by United Fruit to be unsuitable for the growth of banana plants. Shortly after this disaster struck the company pulled out of British Honduras and offered to sell the land back for twice the price at which it was purchased. In the conclusion, Moberg mentions the present situation with the banana export industry in Belize.

One idea that I may look into for a future blog is the outcome of the suit that was initiated by Chiquita (the successor of United Fruit) through WTO. The suit was meant to end the tariff quota system that allowed ACP fruit to export a certain amount of fruit with reduced taxation. If the ruling passes, "United Fruit will have dismantled a banana industry that played a major role in the company's own growth".

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