In political science, the term banana republic describes a politically unstable country with an economy dependent upon the exportation of a limited-resource product, such as bananas or minerals. In 1901, the American author O. Henry coined the term to describe Honduras and neighbouring countries under economic exploitation by U.S. corporations, such as the United Fruit Company. Typically, a banana republic has a society of extremely stratified social classes, usually a large impoverished working class and a ruling-class plutocracy, composed of the business, political and military elites of that society.Such a ruling-class oligarchy control the primary sector of the economy by way of the exploitation of labour; thus, the term banana republic is a pejorative descriptor for a servile dictatorship that abets and supports, for kickbacks, the exploitation of large-scale plantation agriculture, especially banana cultivation.
Political science is a social science which deals with systems of governance, and the analysis of political activities, political thoughts, and political behavior. It deals extensively with the theory and practice of politics which is commonly thought of as determining of the distribution of power and resources. Political scientists "see themselves engaged in revealing the relationships underlying political events and conditions, and from these revelations they attempt to construct general principles about the way the world of politics works."
A banana is an edible fruit – botanically a berry – produced by several kinds of large herbaceous flowering plants in the genus Musa. In some countries, bananas used for cooking may be called "plantains", distinguishing them from dessert bananas. The fruit is variable in size, color, and firmness, but is usually elongated and curved, with soft flesh rich in starch covered with a rind, which may be green, yellow, red, purple, or brown when ripe. The fruits grow in clusters hanging from the top of the plant. Almost all modern edible seedless (parthenocarp) bananas come from two wild species – Musa acuminata and Musa balbisiana. The scientific names of most cultivated bananas are Musa acuminata, Musa balbisiana, and Musa × paradisiaca for the hybrid Musa acuminata × M. balbisiana, depending on their genomic constitution. The old scientific name for this hybrid, Musa sapientum, is no longer used.
William Sydney Porter, better known by his pen name O. Henry, was an American short story writer. His stories are known for their surprise endings.
In economics, a banana republic is a country with an economy of state capitalism, by which economic model the country is operated as a private commercial enterprise for the exclusive profit of the ruling class. Such exploitation is enabled by collusion between the state and favored economic monopolies, in which the profit, derived from the private exploitation of public lands, is private property, while the debts incurred thereby are the financial responsibility of the public treasury. Such an imbalanced economy remains limited by the uneven economic development of town and country, and usually reduces the national currency into devalued banknotes (paper money), rendering the country ineligible for international development credit.
State capitalism is an economic system in which the state undertakes commercial economic activity and where the means of production are organized and managed as state-owned business enterprises, or where there is otherwise a dominance of corporatized government agencies or of publicly listed corporations in which the state has controlling shares. Marxist literature defines state capitalism as a social system combining capitalism with ownership or control by a state—by this definition, a state capitalist country is one where the government controls the economy and essentially acts like a single huge corporation, extracting the surplus value from the workforce in order to invest it in further production. This designation applies regardless of the political aims of the state and some people argue that the modern People's Republic of China constitutes a form of state capitalism and/or that the Soviet Union failed in its goal to establish socialism, but rather established state capitalism.
Private property is a legal designation for the ownership of property by non-governmental legal entities. Private property is distinguishable from public property, which is owned by a state entity; and from collective property, which is owned by a group of non-governmental entities. Private property can be either personal property or capital goods. Private property is a legal concept defined and enforced by a country's political system.
In economics, profit in the accounting sense of the excess of revenue over cost is the sum of two components: normal profit and economic profit. All understanding of profit should be broken down into three aspects: the size of profit, the portion of the total income, and the rate of profit. Normal profit is the profit that is necessary to just cover the opportunity costs of the owner-manager or of the firm's investors. In the absence of this profit, these parties would withdraw their time and funds from the firm and use them to better advantage elsewhere. In contrast, economic profit, sometimes called excess profit, is profit in excess of what is required to cover the opportunity costs.
In the 19th century, the 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, where he lived for six months until January 1897, hiding in a hotel in Trujillo, Colón, when he was wanted in the U.S. for embezzlement from a bank.
Cabbages and Kings is a 1904 novel made up of interlinked short stories, written by O. Henry and set in a fictitious Central American country called the Republic of Anchuria. It takes its title from the poem "The Walrus and the Carpenter", featured in Lewis Carroll's Through the Looking Glass. Its plot contains famous elements in the poem: shoes and ships and sealing wax, cabbages and kings. It was inspired by the characters and situations that O. Henry encountered in Honduras in the late 1890s.
Honduras, officially the Republic of Honduras, is a country in Central America. In the past, it was sometimes referred to as "Spanish Honduras" to differentiate it from British Honduras, which later became modern-day Belize. The republic of Honduras is bordered to the west by Guatemala, to the southwest by El Salvador, to the southeast by Nicaragua, to the south by the Pacific Ocean at the Gulf of Fonseca, and to the north by the Gulf of Honduras, a large inlet of the Caribbean Sea.
Trujillo is a city and a municipality on the northern Caribbean coast of the Honduran department of Colón, of which the city is the capital.
In the early 20th century, the United Fruit Company, a multinational American corporation, was instrumental to the creation of the banana republic phenomenon.Together with other American corporations, such as the Cuyamel Fruit Company, and with occasional support from the United States government, the corporations created the political, economic, and social circumstances that established banana republics in Central American countries such as Honduras and Guatemala.
The United Fruit Company was an American corporation that traded in tropical fruit, grown on Latin American plantations, and sold in the United States and Europe. The company was formed in 1899, from the merger of Minor C. Keith's banana-trading concerns with Andrew W. Preston's Boston Fruit Company. It flourished in the early and mid-20th century, and it came to control vast territories and transportation networks in Central America, the Caribbean coast of Colombia, Ecuador, and the West Indies. Though it competed with the Standard Fruit Company for dominance in the international banana trade, it maintained a virtual monopoly in certain regions, some of which came to be called banana republics, such as Costa Rica, Honduras, and Guatemala.
Cuyamel Fruit Company, formerly the Hubbard-Zemurray Steam Ship Company, was an American agricultural corporation operating in Honduras from 1911 until 1929, before being purchased by the United Fruit Company. Samuel Zemurray, a Jewish Russian immigrant to the United States, founded Cuyamel to export bananas and sugar from the northwestern Cortés region of Honduras to international markets. Zemurray would later become the head of the United Fruit Company. Both Cuyamel and United Fruit are corporate ancestors of the modern-day firm Chiquita Brands International.
Guatemala, officially the Republic of Guatemala, is a country in Central America bordered by Mexico to the north and west, Belize and the Caribbean to the northeast, Honduras to the east, El Salvador to the southeast and the Pacific Ocean to the south. With an estimated population of around 16.6 million, it is the most populated country in Central America. Guatemala is a representative democracy; its capital and largest city is Nueva Guatemala de la Asunción, also known as Guatemala City.
The history of the banana republic began with the introduction of the banana fruit to the U.S. 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 percent profit. equivalent to $6.34in 2018) bought a dozen bananas, but only two apples. In 1873, to produce food for their railroad workers, the American railroad tycoons Henry Meiggs and his nephew, Minor C. Keith, established banana plantations along the railroads they built in Costa Rica; recognizing the profitability of exporting bananas, they began exporting the fruit to the Southeastern U.S.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 (
Lorenzo Dow Baker was an American sailor, ship's captain and businessman whose 1870 voyage from the Orinoco to Jamaica and then to Philadelphia launched the modern banana production industry. In 1881 he partnered with his brother-in-law Elisha Hopkins to form L.D. Baker & Co. In 1885 he joined forces with Andrew W. Preston and eight others to form the Boston Fruit Company, which led to several successive partnerships, ending in the 1899 formation of the United Fruit Company, now Chiquita Brands International.
A schooner is a type of sailing vessel with fore-and-aft sails on two or more masts. The most common type has two masts, the foremast being shorter than the main. While the schooner was originally gaff-rigged, modern schooners typically carry a Bermuda rig.
Henry Meiggs, was a promoter/entrepreneur and railroad builder born in Boston, Massachusetts
In the mid-1870s, to manage the new industrial-agriculture business enterprise in the countries of Central America, Keith founded the Tropical Trading and Transport Company: one-half of what would later become the United Fruit Company (UFC); later Chiquita Brands International, created in 1899 by merger with the Boston Fruit Company, and owned by Andrew Preston. By the 1930s, the international political and economic tensions created by the United Fruit Company enabled the corporation to control 80–90 per cent of the banana business in the U.S.
Agribusiness is the business of agricultural production. The term was coined in 1957 by Goldberg and Davis. It includes agrichemicals, breeding, crop production, distribution, farm machinery, processing, and seed supply, as well as marketing and retail sales. All agents of the food and fiber value chain and those institutions that influence it are part of the agribusiness system.
Central America is located on the southern tip of North America, or is sometimes defined as a subcontinent of the Americas, bordered by Mexico to the north, Colombia to the southeast, the Caribbean Sea to the east, and the Pacific Ocean to the west and south. Central America consists of seven countries: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. The combined population of Central America has been estimated to be 41,739,000 and 42,688,190.
Chiquita Brands International Sàrl, formerly known as Chiquita Brands International Inc., is a Swiss producer and distributor of bananas and other produce. The company operates under a number of subsidiary brand names, including the flagship Chiquita brand and Fresh Express salads. Chiquita is the leading distributor of bananas in the United States.
By the late 19th century, three American multinational corporations (the United Fruit Company, 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 500 hectares per kilometre (2,000 acre/mi) 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), because its influence pervaded Honduran society, controlled their country's transport infrastructure, and sometimes manipulated Honduran national politics with anti-labor violence.
In 1924, despite the UFC monopoly, the Vaccaro Brothers established the Standard Fruit Company (later the Dole Food Company) to export Honduran bananas to the U.S. port of New Orleans. The fruit-exporting corporations kept U.S. prices low by legalistic manipulation of Latin American national land use laws to cheaply buy large tracts of prime agricultural land for corporate banana plantations in the republics of the Caribbean Basin, the Central American isthmus, and tropical South America; the American fruit companies then employed the dispossessed Latin American natives as low-wage employees.
By the 1930s the United Fruit Company owned 3.5 million acres of land in Central America and the Caribbean and was the single largest landowner in Guatemala. Such holdings gave it great power over the governments of small countries. That was one of the factors confirming the suitability of the phrase Banana Republics.
In the early 20th century, the American businessman Sam Zemurray (founder of the Cuyamel Fruit Company) was instrumental to establishing the "banana republic" stereotype, when he entered the banana-export business by buying overripe bananas from the United Fruit Company to sell in New Orleans. In 1910, Zemurray bought 6,070 hectares (15,000 acres) 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 (1904–07), and the American mercenary Gen. Lee Christmas, to overthrow the civil government of Honduras and install a military government friendly to foreign businessmen.
To that end, the mercenary army of the Cuyamel Fruit Company, led by Gen. Christmas, effected a coup d'état against President Miguel R. Dávila (1907–11) and installed General Manuel Bonilla (1912–13). The U.S. ignored the deposition of the elected government of Honduras by a private army, justified by the U.S. State Department's misrepresenting President Dávila as too politically liberal and a poor businessman whose management had indebted Honduras to Great Britain, a geopolitically unacceptable circumstance in light of the Monroe Doctrine. The coup d'état was 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 (ca. US$4 billion) of the Republic 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.Such a historical, inherited foreign debt functionally undermined the Honduran government, which allowed foreign corporations to manage the country and become sole employers of the Honduran people, because the American fruit companies controlled the economic infrastructure (road, rail, and port, telegraph and telephone) they had built in Honduras.
In the event, the U.S. dollar became the legal-tender currency of Honduras; the mercenary Gen. Lee Christmas became commander of the Honduran army, and later was appointed U.S. Consul to the Republic of Honduras.Nonetheless, 23 years later, after much corporate intrigue among the American businessmen, by means of a hostile takeover of agricultural business interests, Sam Zemurray assumed control of the rival United Fruit Company, in 1933.
Guatemala suffered the regional socio-economic legacy of the banana republic: inequitably distributed agricultural land and natural wealth, uneven economic development, and an economy dependent upon a few export crops—usually bananas, coffee, and sugar cane. The inequitable land distribution was an important cause of national poverty, and the concomitant sociopolitical discontent and insurrection. Almost 90 percent of the country's farms are too small to yield adequate subsistence harvests to the farmers, while two percent of the country's farms occupy 65 percent of the arable land, the property of the local oligarchy.[ citation needed ]
During the 1950s, the United Fruit Company sought to convince the governments of U.S. Presidents Harry Truman (1945–53) and Dwight Eisenhower (1953–61) that the popular, elected government of President Jacobo Árbenz Guzmán of Guatemala was secret pro-Soviet for having expropriated unused "fruit company lands" to landless peasants. In the Cold War (1945–91) context of the pro-active anti-communist politics exemplified by U. S. Senator Joseph McCarthy in the years 1947–57, geo-political concerns about the security of the Western Hemisphere facilitated President Eisenhower's ordering and authorizing Operation Success, the 1954 Guatemalan coup d'état by means of which the U.S. Central Intelligence Agency deposed the democratically elected government (1950–54) of President Jacobo Árbenz Guzmán and installed the pro-business government of Colonel Carlos Castillo Armas (1954–57), which lasted for three years until his assassination by a presidential guard.
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 (1960–96). However, in 1986, at the 26-year mark, the Guatemalan people promulgated a new political constitution, and elected Vinicio Cerezo (1986–91) president; then Jorge Serrano Elías (1991–93).
In the book Canto General (General Song, 1950), the Chilean poet Pablo Neruda (1904–73) denounced foreign multinational corporate political dominance of Latin American countries with the four-stanza poem "La United Fruit Co."; the second-stanza excerpts read:
... 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 ...
The novel One Hundred Years of Solitude (1967), by Gabriel García Márquez, depicts the imperialist capitalism of foreign fruit companies as voracious socio-economic exploitation of natural resources of Macondo and of the people. Domestically, the corrupt national government of Macondo abets the business policies and labor practices of the foreign corporations, which brutally oppress the workers.
The protagonist, José Arcadio Segundo, has been organizing the workers of the banana plantations to jointly affect a work strike to protest the inhumane working conditions. Martial law is imposed upon Macondo, and the workers respond by sabotaging the banana plantations. In unexpected response, the national government diplomatically invites more than 3,000 workers to meet with provincial leaders to resolve their labor-and-management differences. The meeting is a deceit; the army surrounds the workers and methodically kill them with machine guns. Afterward, the three thousand corpses are collected onto a train and later dumped into the sea, to be forgotten.
Meanwhile, the apparently dead José Arcadio Segundo also was loaded onto the coast-bound train of corpses, yet later escapes and walks back to Macondo. To his horror, José Arcadio learns that all memory of the massacre has been eliminated, no-one in Macondo remembers the killing of three thousand workers. The townsfolk refuse to believe José Arcadio when he tells them of the massacre, which he survived. Moreover, nature contributes to the oblivion with heavy, unrelenting rain that destroys the physical traces of the massacred workers.
Woody Allen's 1971 film Bananas depicted a fictional banana republic called San Marcos; the film is also named for this term.
Tropico is a series of banana republic simulator games, where as 'El Presidente' the player may choose between tradition or revolution, and laissez-faire or authoritarianism. The 2018 video game Red Dead Redemption 2 includes a fictional Caribbean island banana republic called Guarma.
Countries that obtained independence from colonial powers in the 20th and 21st centuries have at times thereafter tended to share traits of banana republics due to influence of large private corporations in their politics, [ citation needed ] and the Philippines (tobacco industry, American government and corporations).for example; Maldives (resort companies), Chile (foreign mining companies)
On 14 May 1986, then Australian Treasurer Paul Keating stated that Australia might become a banana republic. [ excessive citations ] and is seen as part of a turning point in Australia's political and economic history.This has received a lot of commentary and criticism
Honduras was already occupied by many indigenous peoples when the Spanish arrived in the 16th century. The western-central part of Honduras was inhabited by the Lencas, the central north coast by the Tol, the area east and west of Trujillo by the Pech, the Maya and Sumo. These autonomous groups maintained commercial relationships with each other and with other populations as distant as Panama and Mexico.
The economy of Honduras is based mostly on agriculture, which accounts for 14% of its gross domestic product (GDP) in 2013. Leading export coffee (US$340 million) accounted for 22% of total Honduran export revenues. Bananas, formerly the country's second-largest export until being virtually wiped out by 1998's Hurricane Mitch, recovered in 2000 to 57% of pre-Mitch levels. Cultivated shrimp is another important export sector. Since the late 1970s, towns in the north began industrial production through maquiladoras, especially in San Pedro Sula and Puerto Cortés.
Puerto Cortés, originally known as Puerto de Caballos, is a city on the north Caribbean coast of Honduras, right on the Laguna de Alvarado, north of San Pedro Sula and east of Omoa, with a natural bay. The present city was founded in the early colonial period. It grew rapidly in the twentieth century, thanks to the then railroad, and banana production. In terms of volume of traffic the seaport is the largest in Central America and the 36th largest in the world. As of 2014, Puerto Cortés has a population of some 200,000.
One Hundred Years of Solitude is a landmark 1967 novel by Colombian author Gabriel García Márquez that tells the multi-generational story of the Buendía family, whose patriarch, José Arcadio Buendía, founded the town of Macondo, a fictitious town in the country of Colombia.
Samuel Zemurray was a businessman who made his fortune in the banana trade. He founded the Cuyamel Fruit Company, and later became head of the United Fruit Company, the world's most influential fruit company at the time. Both companies played highly controversial roles in the history of several Latin American countries and had a significant influence on their economic and political development.
Juan Manuel Gálvez Durón was President of Honduras from 1 January 1949 until 5 December 1954. His election, for the National Party of Honduras (PNH), ended the 16-year dictatorship of Tiburcio Carías Andino.
General Manuel Bonilla Chirinos was President of Honduras from 13 April 1903 to 25 February 1907, and again from 1 February 1912 to 21 March 1913. He had previously served as Vice President of Honduras from 1895 to 1899.
The Banana Wars were occupations, police actions, and interventions on the part of the United States in Central America and the Caribbean between the end of the Spanish–American War in 1898 and the inception of the Good Neighbor Policy in 1934. These military interventions were most often carried out by the United States Marine Corps, which developed a manual, The Strategy and Tactics of Small Wars (1921) based on its experiences. On occasion, the Navy provided gunfire support and Army troops were also used.
The Union of Banana Exporting Countries was a cartel of Central and South American banana exporting countries established in 1974, inspired by OPEC. Its aim was to achieve better remuneration from the North American banana trade oligopoly, which consisted of three US companies. UPEB's proposal of an export tax was undermined by the U.S. oligopoly bribing Honduran and Italian officials. The UPEB cartel collapsed when bribes became public. What is referred to as the Bananagate scandal paved the way for the U.S. Congress to create the 1977 Foreign Corrupt Practices Act.
Banana production in Honduras plays an important role in the economy of Honduras. In 1992, the revenue generated from banana sales amounted to US$287 million and along with the coffee industry accounted for some 50% of exports. Honduras produced 861,000 tons of bananas in 1999. The two corporations, Chiquita Brands International and the Dole Food Company are responsible for most Honduran banana production and exports.
This article is about the history of Honduras from 1838 to 1932. Honduras is a republic in Central America. It was at times referred to as Spanish Honduras to differentiate it from British Honduras, which became the modern-day state of Belize.
A general election was held in Honduras on 28–30 December 1924. Voters went to the polls to elect a new President of the Republic and a new Congress.
The 1963 Honduran coup d'état was a military takeover of the Honduran government on 3 October 1963, ten days before a scheduled election. Oswaldo López Arellano replaced Ramón Villeda Morales as the President of the country and initiated two decades of military rule.
The general strike of 1954 was a watershed political and economic event in the history of Honduras that ushered in widespread change.
Although bananas have been planted for thousands of years, the development of an intercontinental trade in bananas had to wait for the convergence of three things: modern rapid shipping (steamships), refrigeration, and railroads. These three factors converged in the Caribbean in the 1870s, and would lead to the development of large-scale banana plantations, usually owned and operated by highly integrated large corporations such as Dole and Chiquita Brands International.
During the first half of the 20th century the economy of Honduras was dominated by American companies such as the United Fruit Company, the Standard Fruit Company and the Cuyamel Fruit Company, which established enormous banana plantations along the north coast. These companies quickly made bananas the primary export of the country in return for large land grants from conservative politicians. Foreign capital, life in the banana plantations, and conservatives determined the politics of Honduras from the mid-20th century to 1988.
The Cuyamel River flows past the city of Cuyamel, Honduras and into an off branch of the Motagua River that marks the boundary between Honduras and Guatemala. American businessman Sam Zemurray purchased his first banana plantation along this river and named his company Cuyamel Fruit Company after it. A proposed dam on the river was approved by the Honduran National Congress in 2014, but has run into local opposition and has not yet been built.