Thread: Speaking of Democracy, Honduras, and President Obama. . .

Speaking of Democracy, Honduras, and President Obama. . .


by John Perkins
Global Research, August 5, 2009


In writing my new book Hoodwinked (Random House, Nov 2009 publication date), I recently visited Central America. Everyone I talked with there was convinced that the military coup that had overthrown the democratically-elected president of Honduras, Manuel Zelaya, had been engineered by two US companies, with CIA support. And that the US and its new president were not standing up for democracy.

Earlier in the year Chiquita Brands International Inc. (formerly United Fruit) and Dole Food Co had severely criticized Zelaya for advocating an increase of 60% in Honduras’s minimum wage, claiming that the policy would cut into corporate profits. They were joined by a coalition of textile manufacturers and exporters, companies that rely on cheap labor to work in their sweatshops.

Memories are short in the US, but not in Central America. I kept hearing people who claimed that it was a matter of record that Chiquita (United Fruit) and the CIA had toppled Guatemala’s democratically-elected president Jacobo Arbenz in 1954 and that International Telephone & Telegraph (ITT), Henry Kissinger, and the CIA had brought down Chile’s Salvador Allende in 1973. These people were certain that Haiti’s president Jean-Bertrand Aristide had been ousted by the CIA in 2004 because he proposed a minimum wage increase, like Zelaya’s.

I was told by a Panamanian bank vice president, “Every multinational knows that if Honduras raises its hourly rate, the rest of Latin America and the Caribbean will have to follow. Haiti and Honduras have always set the bottom line for minimum wages. The big companies are determined to stop what they call a ‘leftist revolt’ in this hemisphere. In throwing out Zelaya they are sending frightening messages to all the other presidents who are trying to raise the living standards of their people.â€

It did not take much imagination to envision the turmoil sweeping through every Latin American capital. There had been a collective sign of relief at Barack Obama’s election in the U.S., a sense of hope that the empire in the North would finally exhibit compassion toward its southern neighbors, that the unfair trade agreements, privatizations, draconian IMF Structural Adjustment Programs, and threats of military intervention would slow down and perhaps even fade away. Now, that optimism was turning sour.

This says it all.

“Every multinational knows that if Honduras raises its hourly rate, the rest of Latin America and the Caribbean will have to follow. Haiti and Honduras have always set the bottom line for minimum wages. The big companies are determined to stop what they call a ‘leftist revolt’ in this hemisphere.

Wouldn't it be poetic justice if all the countries in the world organized unions and raised their minimum wages to a point where it was no longer financially viable for the corporate masters to offshore their operations?