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Title: The Victors
Author: Noam Chomsky
Date: 1991
Language: en
Topics: cold war
Source: Retrieved on 8th June 2021 from https://chomsky.info/199011__/
Notes: From Z Magazine, November, 1990; January, 1991; and April, 1991

Noam Chomsky

The Victors

Part I

November, 1990

At any historical moment, we are likely to find a conventional

interpretation of the state of the world and our role within it, often

gaining the force of unchallenged doctrine. Another near truism is that

reality tends to depart from established Truth. The present period is no

exception.

That significant, even momentous, changes are underway in the world is

clear enough, and has been so for many years. The conventional

interpretation need not be elaborated at length; open an arbitrary

journal, and it is laid out before you. The U.S. has won the Cold War.

Righteousness has triumphed over evil with the victory of democracy,

free market capitalism, justice and human rights. As standard bearer of

the cause, the United States now leads the way to a New World Order of

peace, economic development, and cooperation among those who have seen

the light, virtually everyone except for some holdouts like Cuba which

still complains irrationally that the Third World isn’t getting its due

— or Saddam Hussein, despite our dedicated efforts to improve his

behavior by the carrot rather than the stick, an error of judgment soon

to be rectified by the sword of the righteous avenger.

There are various ways to assess the validity of this inspiring picture.

One is to have a look at the traditional domains of the U.S. (and the

West generally), and ask how their people fare at this historic moment,

as they celebrate the victory of their side, a triumph of liberal

capitalism and democracy so final and conclusive, some feel, that we

have reached “the end of history,” after which we sink into a sad state

of boredom, relieved only by the occasional technical manipulations

needed to deal with questions at the margin.

The concern that the fun might be over is not quite as novel as Francis

Fukuyama and other devotees of the Hegelian Spirit suggest. At his first

meeting with John F. Kennedy in 1958, Walt Rostow, later to become a top

adviser of the Kennedy administration, warned — perhaps a shade

prematurely — that after the astonishing domestic successes achieved by

“the nation’s creativeness and idealism over the past ninety years, …we

run the danger of becoming a bore to ourselves and the world.” In

Rostow’s picture of the world (shared with Kennedy, according to his

account), the basic problems of American society were then approaching

full resolution. No real barriers stood in the way of economic progress

without serious cyclic disorders, “social equity” for minorities, “the

provision of equal educational opportunity,” and “the equitable

distribution of income.” We knew what was needed, and agreed that it

should be done. The consensus was so broad and the conclusions so

well-founded as to signal “the end of ideology,” it was widely held.

Like Kennedy, Rostow felt that with the problems of domestic society

largely behind us, “the great revolutionary transformations going

forward in the underdeveloped world” should now absorb our energies and

revitalize “those basic spiritual qualities which have been historically

linked to the nation’s sense of world mission.”[1]

The Third World was soon to experience, once again, these “basic

spiritual qualities,” now with the special cast given them by the

knights-errant of Camelot.

Not everyone feels confident that the nature and proper goals of human

society are fully understood, and the problems at home so close to

resolution that only some minor tinkering remains, just as not all share

Tom Wolfe’s appreciation of the past decade as “one of the great golden

moments that humanity has ever experienced.” One need hardly go as far

as a Black teenager in Harlem to find a slightly different sense of

current realities. And even the most cursory look beyond the borders

will locate voices that are not raised in joy and acclaim for the

triumph of their champions — Central American human rights workers and

priests, for example — and do not join the meaningless game of comparing

Eastern and Western Europe, or the USSR and the United States, but

rather choose, more realistically and more honestly, to compare the

current state of regions that were at similar levels of economic and

sociopolitical development, with similar endowments and prospects, not

many years ago. And despite much curious rhetoric in media and other

circles, some perceive that the past years hardly illustrate the thesis

that democracy and the free market are the decisive conditions for

economic success — in Japan and the Four Tigers in its periphery, to

take the obvious (but not only) example.

Let us survey — all too briefly — some of the daily experience of those

who should be savoring the fruits of victory. The reasonable course is

to begin the inquiry close to home, in the domains where U.S. influence

has been so overwhelming that the contours of the triumph must be

shatteringly clear. In this first section, I will keep to that, turning

in subsequent articles to a broader view, and to some comments on

meaningful comparisons that would be made, and studies that would be

pursued, if human concerns animated the odes to our virtue that

accompany the triumph. I would also like to consider the shape of the

New World Order and the U.S. role within it as seen from a perspective

that departs from reigning conventions, attending to features of the

contemporary world that suggest a rather different conception of where

we are and where we are heading.

The Fruits of Victory

Few regions of the world have been so dominated by a great power as

Central America, which emerged from its usual oblivion in the 1980s,

moving to center stage as the traditional order faced an unexpected

challenge with the growth of popular movements, inspired in part by the

new orientation of the Church toward “a preferential option for the

poor” (Puebla Conference of Bishops, 1979). After decades of brutal

repression and the destructive impact of the U.S. aid programs of the

1960s — an “economic miracle” by statistical measures, a disaster for

most of the population — the ground was prepared for meaningful

democracy and social change. The mood in Washington darkened further

with the overthrow of the Somoza dictatorship and the defeat of his

murderous National Guard despite the best efforts of the Carter

administration, until the end, to ensure that it would retain effective

power.

The reaction was vigorous and swift: violent repression, which decimated

popular organizations. The ranks of the small guerrilla organizations

swelled as state terror mounted. “The guerrilla groups, the

revolutionary groups, almost without exception began as associations of

teachers, associations of labor unions, campesino unions, or parish

organizations….” with practical and reformist goals, ex-Ambassador

Robert White testified before Congress in 1982. The same point has been

made by the assassinated Salvadoran Jesuit intellectual Father Ignacio

Martin-Baro, among many others.

A decade later, the United States and its local allies could claim

substantial success. The challenge to the traditional order was

effectively contained. The misery of the vast majority had deepened

while the power of the military and the privileged sectors was enhanced

behind a facade of democratic forms. Some 200,000 people had been

killed, most of them slaughtered outright in a paroxysm of sadistic

terror conducted by the forces armed, trained, and advised by the United

States. Countless others were maimed, tortured, “disappeared,” driven

from their homes. The people, the communities, the environment were

devastated, possibly beyond repair. It is truly a grand victory.

Elite reaction in the United States is one of gratification and relief.

“For the first time, all five of the countries are led by presidents who

were elected in contests widely considered free and fair,” Washington

Post Central America correspondent Lee Hockstader reports from Guatemala

City, expressing the general satisfaction over the victory of

“conservative politicians” in elections which, we are to understand,

took place on a level playing field with no use of force and no foreign

influence. It is true, he continues, that “conservative politicians in

Central America traditionally represented the established order,”

defending the wealthy “despite their countries’ grossly distorted income

patterns.” “But the wave of democracy that has swept the region in

recent years appears to be shifting politicians’ priorities,” so the bad

old days are gone forever.[2]

The student of American history and culture will recognize the familiar

moves. Once again, we witness the miraculous change of course that

occurs whenever some particularly brutal excesses of the state have been

exposed. Hence all of history, and the reasons for its persistent

character, may be dismissed as irrelevant, while we march forward,

leading our flock to a new and better world.

The Post news report does not merely assert that the new conservatives

are dedicated populists, unlike those whom the U.S. used to support in

the days of its naivete and inadvertent error, now thankfully behind us.

Serious journalistic standards require evidence for this central claim,

and it is indeed provided. The shift of priorities to a welcome populism

is demonstrated by the outcome of the conference of the five presidents

in Antigua, Guatemala, just completed. The presidents, all “committed to

free-market economics,” have abandoned worthless goals of social reform,

Hockstader explains. “Neither in the plan nor in the Declaration of

Antigua’ was there any mention of land reform or suggestion of new

government social welfare programs to help the poor.” Rather, they are

adopting “a trickle-down approach to aid the poor.” “The idea is to help

the poor without threatening the basic power structure,” a regional

economist observes, contemplating these imaginative new ideas on how to

pursue our vocation of serving the suffering masses.

The headline reads “Central Americans to use Trickle-down Strategy in

War on Poverty.” Quite properly, the headline captures the basic thrust

of the news story and the assumption that frames it: aiding the poor is

the highest priority of this new breed of populist conservatives, as it

always has been for Washington and the political culture generally. The

only question is how to achieve this noble aim. That this has always

been our fervent commitment is a doctrine so obviously valid that it

need not be supported with any evidence or argument, or even formulated

explicitly. It is merely presupposed, and we go on from there. What is

newsworthy, and so promising, is the populism of the conservatives we

support, and their ingenious and startlingly innovative approach to our

traditional commitment to help the poor and suffering: a trickle-down

strategy of enriching the wealthy — a “preferential option for the

rich,” overcoming the errors of the Puebla Conference of Bishops.

One participant in the meeting is quoted as saying that “These past 10

years have been gruesome for poor people, they’ve taken a beating.”

Putting aside the conventions, one might observe that the political

outcomes hailed as a triumph of democracy are in no small measure a

tribute to the efficacy of U.S. terror, and that the presidents who hold

formal power, and their sponsors, might have had something other than a

war on poverty in mind. There is also a history of trickle-down

approaches to relieving poverty that might be explored. Such an inquiry

might lead us to expect that the next 10 years will be no less gruesome

for the poor. But that path is not pursued, here or elsewhere in the

mainstream.

The Post story captures well the character and dimensions of the U.S.

victory. The satisfaction among the important people is readily

understandable.

While the three-day conference of populist conservatives was taking

place in Antigua, 33 tortured, bullet-riddled bodies were discovered in

Guatemala. They did not disturb the celebration over the triumph of

freedom and democracy, or even make the news.

Nor did the rest of the 125 bodies, half with signs of torture, found

throughout the country that month, according to the Guatemalan Human

Rights Commission. The Commission identified 79 as victims of

“extrajudicial execution” by the security forces. Another 29 were

kidnapped and 49 injured in kidnap attempts. The report comes to us from

Mexico, where the Commission is based so that human rights workers can

survive now that the U.S. has succeeded in establishing democracy in

Guatemala.[3]

In the Costa Rican journal Mesoamerica, a report on the Antigua meeting

observes that “Now that the Sandinistas have been successfully booted

out of office, the pervading attitude among regional and U.S. leaders

with respect to the Esquipulas peace mission accomplished’.” The core

sections of the Central America accords that call for social justice and

respect for human rights had been long been consigned to the ashcan, as

intended by Oscar Arias and his U.S. sponsors in high places, who, along

with the elite political culture generally, revealed by their actions

their actual attitudes towards the savage atrocities conducted under the

aegis of those with the right priorities.[4]

The U.N. Economic Commission for Latin America and the Caribbean (CEPAL)

reports that the percentage of the Guatemalan population living in

extreme poverty increased rapidly after the establishment of democracy

in 1985, from 45% in that year to 76% in 1988. A study by the

Nutritional Institute of Central America and Panama (INCAP) estimates

that half the population live under conditions of extreme poverty, and

that in rural areas, where the situation is worse, 13 out of every 100

children under five die of illnesses related to malnutrition. Other

studies estimate that 20,000 Guatemalans die of hunger every year, that

more than 1000 children died of measles alone in the first four months

of 1990, and that “the majority of Guatemala’s four million children

receive no protection at all, not even for the most elemental rights.”

The Communique of the January 1990 Conference of Guatemalan Bishops

reviews the steady deterioration of the critical situation of the mass

of the population as “the economic crisis has degenerated into a social

crisis” and human rights, even “the right to dignity,” “do not

exist.”[5]

Throughout the region, the desperate situation of the poor majority has

become still more grave with the progress of democracy, American-style.

Three weeks before the Antigua conference, in his homily marking the

completion of President Alfredo Cristiani’s first year in office,

Archbishop Rivera y Damas of San Salvador deplored the policies of his

administration, which have worsened the already desperate plight of the

poor; the conservative populist so admired in Washington and New York

“is working to maintain the system,” the Archbishop said, “favoring a

market economy which is making the poor yet poorer.”[6]

In the neighboring countries, the situation is much the same. A few days

after the encouraging Washington Post report on the Antigua meeting, an

editorial in a leading Honduran journal appeared under the headline

“Misery is increasing in Honduras because of the economic adjustment,”

referring to the new trickle-down strategy that the Post found so

promising — actually the traditional strategy, its lethal features now

more firmly entrenched. The main victims are “the usual neglected

groups: children, women, and the aged,” according to the conclusions of

an academic seminar on “Social Policy in the Context of Crisis,”

confirmed by “the Catholic Church, the unions, several political

parties, and noted economists and statisticians of the country.”

Two-thirds of the population live below the poverty line, over half of

these below the level of “dire need.” Unemployment, undernourishment,

and severe malnutrition are increasing.[7]

The Pan American Health Organization estimates that of 850,000 children

born every year in Central America, 100,000 will die before the age of

five and two-thirds of those who survive will suffer from malnutrition,

with attendant physical or mental development problems. The

Inter-American Development Bank reports that per capita income has

fallen to the level of 1971 in Guatemala, 1961 in El Salvador, 1973 in

Honduras, 1960 in Nicaragua, 1974 in Costa Rica, and 1982 in Panama.[8]

Nicaragua was an exception to this trend of increasing misery, but the

U.S. terrorist attack and economic warfare succeeded in reversing

earlier gains. Nevertheless, infant mortality halved over the decade,

from 128 to 62 deaths per thousand births; “Such a reduction is

exceptional on the international level,” a UNICEF official said in 1989,

“especially when the country’s war-ravaged economy is taken into

account.”[9]

Studies by CEPAL, the World Health Organization, and others “cast

dramatic light on the situation,” Mexico’s leading daily reports.

They reveal that 15 million Central Americans, almost 60% of the

population, live in poverty, of whom 9.7 million live in “extreme

poverty.” Severe malnutrition is rampant among children. 75% of the

peasants in Guatemala, 60% in El Salvador, 40% in Nicaragua, and 35% in

Honduras lack health care. To make matters worse, Washington has applied

“stunning quotas on sugar, beef, cocoa, cheese, textiles, and limestone,

as well as compensation laws and antidumping’ policies in cement,

flowers, and operations of cellulose and glass.” The EEC and Japan have

followed suit, also imposing harmful protectionist measures.[10]

The environment has shared the fate of those who people it.

Deforestation, soil erosion, pesticide poisoning, and other forms of

environmental destruction, increasing through the 1980s, are traceable

in large measure to the development model imposed upon the region and

U.S. militarization of it in recent years. Intense exploitation of

resources by agribusiness and export-oriented production have enriched

wealthy sectors and their foreign sponsors, and led to statistical

growth, with a devastating impact on the land and the people. In El

Salvador, large areas have become virtual wastelands as the military has

sought to undermine the peasant base of the guerrillas by extensive

bombardment, and by forest and crop destruction. There have been

occasional efforts to stem the ongoing catastrophe. Like the Arbenz

government overthrown in the CIA-run coup that restored the military

regime in Guatemala, the Sandinistas initiated a series of environmental

reforms and protections. These were desperately needed, both in the

countryside and near Managua, where industrial plants had been permitted

to dump waste freely. The most notorious case was the U.S. Penwalt

corporation, which poured mercury into Lake Managua until 1981.[11]

As in Guatemala 30 years before, these efforts to depart from what the

Washington Post approvingly calls “the Central American mode” were

satisfactorily overcome by U.S. terror and economic warfare.

The foreign-imposed development model has emphasized “nontraditional

exports” in recent years. Under the free market conditions approved for

defenseless Third World countries, the search for survival and gain will

naturally lead to products that maximize profit, whatever the

consequences. Coca production has soared in the Andes and elsewhere for

this reason, but there are other examples as well. After the discovery

of clandestine “human farms” and “fattening houses” for children in

Honduras and Guatemala, Dr. Luis Genaro Morales, president of the

Guatemalan Pediatric Association, said that child trafficking “is

becoming one of the principal nontraditional export products,”

generating $20 million of business a year. The International Human

Rights Federation (IHRF), after an inquiry in Guatemala, gave a more

conservative estimate, reporting that about 300 children are kidnapped

every year, taken to secret nurseries, then sold for adoption at about

$10,000 per child.

The IHRF investigators could not confirm reports that organs of babies

were being sold to foreign buyers. This macabre belief is widely held in

the region, however. A few weeks earlier, the Honduran journal Tiempo

reported that the Paraguayan police rescued 7 Brazilian babies from a

gang that “intended to sacrifice them to organ banks in the United

States, according to a charge in the courts.” The same journal reported

shortly after that an Appeals Judge in Honduras ordered “a meticulous

investigation into the sale of Honduran children for the purpose of

using their organs for transplant operations.” A year earlier, the

Secretary General of the National Council of Social Services, which is

in charge of adoptions, had reported that Honduran children “were being

sold to the body traffic industry” for organ transplant. “Fattening

houses” for children had been found in San Pedro Sula and elsewhere.[12]

A Resolution on the Trafficking of Central American Children, approved

by the European Parliament two months later (November 1988), alleged

that near a “human farm” in San Pedro Sula, infant corpses were found

that “had been stripped of one or a number of organs.” At another “human

farm” in Guatemala, babies ranging from 11 days old to four months old

had been found. The director of the farm, at the time of his arrest,

declared that the children “were sold to American or Israeli families

whose children needed organ transplants at the cost of $75,000 per

child,” the Resolution continues, expressing “its horror in the light of

the facts” and calling for investigation and preventive measures.[13]

As the region sinks into further misery, these reports continue to

appear. In July 1990, a right-wing Honduran daily, under the headline

“Loathsome Sale of Human Flesh,” reported that police in El Salvador had

discovered a group, headed by a lawyer, that was buying children to

resell in the United States. An estimated 20,000 children disappear

every year in Mexico, the report continues, destined for this end or for

use in criminal activities such as transport of drugs “inside their

bodies.” “The most gory fact, however, is that many little ones are used

for transplant [of organs] to children in the U.S.,” which may account

for the fact that the highest rate of kidnapping of children from

infants to 18-year-olds is in the Mexican regions bordering on the

United States.[14]

The one exception to the Central America horror story has been Costa

Rica, set firmly on a course of state-guided development by the Jose

Figueres coup of 1948, with welfare measures combined with harsh

repression of labor, and virtual elimination of the armed forces. The

U.S. has always kept a wary eye on this deviation from the regional

standards, despite the welcome suppression of labor and the favorable

conditions for foreign investors. In the 1980s, U.S. pressures to

dismantle the social democratic features and restore the army elicited

bitter complaints from Figueres and others who shared his commitments.

While Costa Rica continues to stand apart from the region in political

and economic development, the signs of what the Central Americanization’

of Costa Rica” are unmistakeable.[15]

Under the pressure of a huge debt, Costa Rica has been compelled to

follow “the preferential option for the rich”: the IMF model of free

market capitalism designed for the Third World, with austerity for the

poor, cutback in social programs, and benefits for domestic and foreign

investors. The results are coming in. By statistical measures, the

economy is relatively strong. But more than 25% of the population —

715,000 people — live in poverty, 100,000 in extreme poverty, according

to a study published by the ultra-right journal La Nacion (one feature

of Costa Rican democracy being a monopoly of the Spanish language media

by the extreme right sectors of the business community). A study by the

Gallup office in Costa Rica published in Prensa Libre gives even higher

figures, concluding that “approximately one million people cannot afford

a minimum diet, nor pay for clothing, education or health care.”[16]

The neoliberal economic policies of the 1980s increased social

discontent and labor tensions, Excelsior reports, evoking an “intense

attack by unionists, popular organizations,” and others against the

Arias administration, which has implemented these measures in conformity

with U.S. demands and the priorities of privileged sectors. Church

sources report that “the belt-tightening measures of the 1980s, which

included the elimination of subsidies, low interest credit, price

supports and government assistance programs, have driven many campesinos

and small farmers off their land,” leading to many protests. The Bishop

of Limon issued a pastoral letter deploring the social deterioration and

“worsening of the problems” to which “banana workers, in great majority

immigrants from rural settings where they were property owners, have

been subject.” He also deplored the harsh labor code and government

policies that enabled the growers to purge union leaders and otherwise

undermine workers’ rights, and the deforestation and pollution the

companies have caused, with government support.[17]

Environmental degradation is serious here as well, including rapid

deforestation and sedimentation that has severely effected virtually

every major hydroelectric project. Environmental studies reveal that 42%

of Costa Rica’s soil shows signs of severe erosion. “Top soil is Costa

Rica’s largest export,” the Vice-Minister of Natural Resources

commented. Expanding production for export and logging have destroyed

forests, particularly the cattle boom of the 1960s and 1970s promoted by

the government, international banks and corporations, and the U.S. aid

program, which also undermined food production for domestic needs, as

elsewhere in Central America. Environmentalists blame government and

business for “ecological illiteracy” — more accurately, pursuit of

profit without regard for externalities, as prescribed in the capitalist

model.[18]

Submissiveness to these demands has yet to meet the exacting standards

of the international guardians of business rights. The IMF suspended

assistance to Costa Rica in February 1990, cancelling credits. U.S. aid

is also falling, now that there is no longer any need to buy Costa

Rica’s cooperation in the anti-Sandinista jihad.[19]

Economic constraints and foreign pressures have narrowed the political

system in the approved manner. In the 1990 elections, the two candidates

had virtually identical (pro-business) programs, in accord with “Central

American mode” approved by U.S. liberal doctrine, and were highly

supportive of U.S. policies in the region (“right on the mark,” the

eventual victor, Rafael Angel Calderon, declared in a debate sponsored

by the business federation). The Central Americanization of Costa Rica

is also revealed by the increasing repression through the 1980s. From

1985, the Costa Rican Human Rights Commission (CODEHU) reported torture,

arbitrary arrest, harassment of campesinos and workers, and other abuses

by the security forces, including a dramatic rise in illegal detentions

and arrests. It links the growing wave of abuses to the increasing

militarization of the police and security forces, some of whom have been

trained in U.S. and Taiwanese military schools. These charges were

supported further when an underground torture chamber was found in the

building of the Costa Rican Special Police (OIJ), where prisoners were

beaten and subjected to electric shock treatment, including torture of a

pregnant woman who aborted and electric shock administered to a

13-year-old child to elicit a false confession. CODEHU alleges that 13

people have died in similar incidents since 1988. “Battered by charges

of corruption and drug trafficking, the Arias administration receives

another blow to its diminishing reputation as a bulwark of democracy”

from these revelations, the Central America Report observed.[20]

Arias’s image “is about to be tarnished” further, according to reports

from San Jose that investigators of the Legislative Drug Commission

discovered that he had received a check for $50,000 for his campaign

fund from Ocean Hunter Seafood, but had put it in his personal bank

account. This Miami-based company and its Costa Rican affiliate,

Frigarificos de Puntarenas, were identified by U.S. Congressional

investigators as a drug trafficking operation.[21] I leave it to the

reader to imagine Mark Uhlig’s sardonic story in the New York Times if

something similar were hinted about a minor Sandinista official, however

flimsy the evidence.

According to official government figures, the security budget increased

15% in 1988 and 13% in 1989 (spending on education rose less than half

that much). The press has reported training of security officers in Fort

Benning, Georgia, and U.S. bases in Panama, and a Taiwanese military

academy, as well as by Israeli secret police, the army of El Salvador,

the Guatemalan army special forces, and others. Fifteen private

paramilitary, vigilante, and security organizations have been

identified, with extreme nationalist and right-wing agendas. A member of

the special commission of the legislature set up to investigate these

matters described the police as an “army in disguise…out of control.”

The executive secretary of Costa Rica’s Human Rights Commission, Sylvia

Porras, noted that “the psychological profile of the police has changed

as a result of military training,” adding that “we cannot talk any

longer of a civilian police force. What we have now is a hidden

army.”[22]

Annual U.S. military aid in the 1980s shot up to about 18 times what it

had been from 1946 through 1979. U.S. pressures to rebuild the security

forces, reversing the Figueres reforms, have been widely regarded as a

factor in the drift towards the Central American mode. The role of Oscar

Arias has evoked particular ridicule South of the border. After an Arias

article in the New York Times piously calling on Panama to follow the

Costa Rican model and abolish the army, the well-known Mexican writer

Gregorio Selser published a review of some Costa Rican realities,

beginning with the violent repression of a peaceful demonstration of

landless campesinos in September 1986 by Arias’s Civil Guard, with many

serious injuries. The absence of an army in Costa Rica, he alleges, has

become largely a matter of semantics; different words for the same

things. He cites an Arias decree of August 5, 1987 — just at the moment

of the signing of the Esquipulas accords that brought him a Nobel Peace

prize — establishing a professional army in all but name, with the full

array of ranks and structure; and a 1989 CODEHU report on the training

of hundreds of men in military academies of the U.S., Taiwan, Honduras,

Guatemala and Panama.[23]

Little of this has ever reached the United States, except far from the

mainstream. In the context of the Drug War, however, some notice has

been taken. An editorial in the Miami Herald on “Costa Rica’s anguish”

cites the comments by Sylvia Porras quoted above on the effects of U.S.

military training, which has changed the “psychological profile” of the

civilian police, turning them to “a camouflaged army.” The judgment is

not “hyperbole,” the editorial concludes, attributing the rapid growth

of the army and the recent killing of civilians by the security forces

to the Nicaraguan conflict and the drug war — but with no mention of

U.S. pressures, following the norms of the Free Press.[24]

Good Intentions Gone Awry

We may conclude this survey of the triumph of free market capitalism in

Central America with a look at Panama, recently liberated by Operation

Just Cause.

In the months following the liberation, the successful affair largely

disappeared from view,[25] the normal pattern. U.S. goals had been

achieved, the triumph had been properly celebrated, and there was little

more to say except to record subsequent progress towards freedom,

democracy, and good fortune — or, if that strains credulity, to produce

occasional musings on how the best of intentions go awry when we have

such poor human material to work with.

Central American sources continued to give considerable attention to the

impact of the invasion on civilians, but they were ignored in the

occasional reviews of the matter here. New York Times correspondent

Larry Rohter devoted a column to casualty estimates on April 1, citing

figures as high as 673 killed, and adding that higher figures, which he

attributes only to Ramsey Clark, are “widely rejected” in Panama. He

found Panamanian witnesses who described U.S. military actions as

restrained, but none with less happy tales.[26]

Among the many readily accessible sources deemed unworthy of mention in

the Times (and the media generally), we find such examples as the

following.

The Mexican press reported that two Catholic Bishops estimated deaths at

perhaps 3000. Hospitals and nongovernmental human rights groups

estimated deaths at over 2000.[27]

A joint delegation of the Costa Rica-based Central American Human Rights

Commission (CODEHUCA) and the Panamanian Human Rights Commission

(CONADEHUPA) published the report of its January 20–30 inquiry, based on

numerous interviews. It concluded that “the human costs of the invasion

are substantially higher than the official U.S. figures” of 202

civilians killed, reaching 2–3000 according to “conservative estimates.”

Eyewitnesses interviewed in the urban slums report that U.S. helicopters

aimed their fire at buildings with only civilian occupants, that a U.S.

tank destroyed a public bus killing 26 passengers, that civilian

residences were burned to the ground with many apartments destroyed and

many killed, that U.S. troops shot at ambulances and killed wounded,

some with bayonets, and denied access to the Red Cross. The Catholic and

Episcopal Churches gave estimates of 3000 dead as “conservative.”

Civilians were illegally detained, particularly union leaders and those

considered “in opposition to the invasion or nationalistic.” “All the

residences and offices of the political sectors that oppose the invasion

have been searched and much of them have been destroyed and their

valuables stolen.” The U.S. imposed severe censorship. Human rights

violations under Noriega had been “unacceptably high,” the report

continues, though of course “mild compared with the record of

U.S.-supported regimes in Guatemala and El Salvador.” But the U.S

invasion “caused an unprecedented level of deaths, suffering, and human

rights abuses in Panama.” The title of the report is: “Panama: More than

an invasion, …a massacre.”[28]

Since its topic is not Kuwait, the report passed without notice here.

Sources at the University of Panama estimated at least 5000 dead; the

head of the School of Public Administration at the University condemned

the U.S. army’s “iron control [which] will not allow access to any

Panamian institution to find out the correct number of casualties.”[29]

Physicians for Human Rights, with the concurrence of Americas Watch,

reached tentative casualty figures higher than those given by the

Pentagon but well below those of COHUDECA-CONADEHUPA and others in

Panama. Their estimate is about 300 civilians killed. Americas Watch

also gives a “conservative estimate” of at least 3000 wounded,

concluding further that civilian deaths were four times as great as

military deaths in Panama, and over ten times as high as U.S. casualties

(officially given as 23; the U.S. military estimated civilian deaths at

202). They ask: “How does ‘surgical operation’ result in almost ten

civilians killed (by official U.S. count) for every American military

casualty?” By September, the count of bodies exhumed from several of the

mass graves had passed 600.[30]

Excavation of mass graves meanwhile continues. By September, the count

of bodies found in these graves alone had reached well over 600.[31]

The COHUDECA-CONADEHUPA report emphasizes that a great deal is

uncertain, because of the violent circumstances, the incineration of

bodies, and the lack of records for persons buried in common graves

without having reached morgues or hospitals, according to eyewitnesses.

note: See CODEHUCA letter to Americas Watch, June 5, 1990, commenting on

the Americas Watch report.} Its reports, and the many others of which a

few have been cited here, may or may not be accurate. A media decision

to ignore them, however, reflects not professional standards but a

commitment to power.

On September 30, some of this information finally broke into the

mainstream media in a television report by CBS news (“60 minutes”).[32]

Pictures of mass graves were shown, and a Panamanian woman who had

worked for months to have a few of them opened and the remains

identified, exhausting her own resources in the process, estimated

civilian deaths at perhaps 4000. The CBS investigation also revealed new

information: secret U.S. army reports estimating 1000 civilians killed —

not the 202 that were officially reported — and urging that damage

claims not be considered because the number might mount too high. There

was also a (rare) report of thousands of Panamanians protesting against

the U.S. invasion and occupation.

While Larry Rohter’s visits to the slums destroyed by U.S. bombardment

located only celebrants, or critics of U.S. “insensitivity” at worst,

others found a rather different picture. Mexico’s leading newspaper

reported in April that Rafael Olivardia, refugee spokesman for the

15,000 refugees of the devastated El Chorrillo neighborhood, “said that

the El bloodbath’ during and after saw North American tanks roll over

the dead’ during the invasion that left a total of more than 2000 dead

and thousands injured, according to unofficial figures.” “You only live

once,” Olivardia said, “and if you must die fighting for an adequate

home, then the U.S. soldiers should complete the task they began” on

December 20.

The Spanish language press in the United States was less celebratory and

deferential than its colleagues. Vicky Pelaez reports from Panama that

“the entire world continues in ignorance about how the thousands of

victims of the Northamerican invasion of Panama died and what kinds of

weapons were used, because the Attorney-General of the country refuses

to permit investigation of the bodies buried in the common graves.” An

accompanying photo shows workmen exhuming corpses from a grave

containing “almost 200 victims of the invasion.” Quoting a woman who

found the body of her murdered father, Pelaez reports that “just like

the woman vox populi’ in Panama that the Northamericans used completely

unknown armaments during the 20 December invasion.” Olga Mejia,

President of Panamanian Human Rights, informed the journal that “They

converted Panama into a laboratory of horror. Here, they first

experimented with methods of economic strangulation; then they

successfully used a campaign of disinformation at the international

level. But it was in the application of the most modern war technology

that they demonstrated infernal mastery.” The CODEHUCA-CONADEHUPA report

also alleges that “the U.S. Army used highly sophisticated weapons —

some for the first time in combat — against unarmed civilian

populations,” and “in many cases no distinction was made between

civilian and military targets.”[33]

One case of “highly sophisticated weapons” did receive some attention.

F-117A stealth fighters were used in combat for the first time, dropping

2000-lb. bombs with time-delay mechanisms in a large open field near an

airstrip and barracks that housed an elite PDF battalion. The Air Force

had kept this plane under close wraps, refusing to release cost or

performance data about it. “There were conflicting reports as to the

rationale for employing the sophisticated aircraft, which cost nearly

$50 million apiece, to conduct what appeared to be a simple operation,”

Aviation Week & Space Technology reported. The Panamanian air force has

no fighters and no military aircraft were stationed permanently at the

base that was attacked. Its only known air defenses “were a pair of

aging small caliber antiaircraft guns.” An American aeronautical

engineering consultant and charter operator in Panama said he was

“astonished” to learn of the use of the F-117A, pointing out that the

target attacked did not even have radar: “They could have bombed it with

any other aircraft and not been noticed.” The aerospace journal cites

Defense Secretary Dick Cheney’s claim that the aircraft were used

“because of its great accuracy,” then suggesting its own answer to the

puzzle: “By demonstrating the F-117A’s capability to operate in

low-intensity conflicts, as well as its intended mission to attack

heavily defended Soviet targets, the operation can be used by the Air

Force to justify the huge investment made in stealth technology” to “an

increasingly skeptical Congress.”[34]

A similar conclusion was reached, more broadly, by Col. (Ret.) David

Hackworth, a former combat commander who is one of the nation’s most

decorated soldiers. He described the Panama operation as technically

efficient, though in his judgment “100 Special Forces guys” would have

sufficed to capture Noriega, and “this big operation was a Pentagon

attempt to impress Congress just when they’re starting to cut back on

the military.” Other evidence lends credibility to these suggestions,

including the White House National Security Strategy report presented to

Congress in March 1990.[35]

If these were indeed among the motives for the exercise, they may have

suffered a slight setback when it turned out that one of the stealth

fighter-bombers had missed its undefended target by more than 300 yards,

despite its “great accuracy.” Defense Secretary Cheney ordered an

inquiry.[36]

The nature of the U.S. victory became clearer, along predictable lines,

in the following months. Its character is described by Andres

Oppenheimer in the Miami Herald in June, under the heading “Panama

Flirts with Economic Recovery” — that is, recovery from the depths to

which it was plunged by illegal U.S. economic warfare, then invasion and

occupation. But there is a qualification: “Six months after the U.S.

invasion, Panama is showing signs of growing prosperity — at least for

the largely white-skinned business class that has regained its influence

after more than two decades of military rule,” the small minority of

important people. The luxury shops are again full of goods, and

“Panama’s nightlife is also perking up” as “foreign tourists, mostly

U.S. businessmen, can be seen most evenings sipping martinis in the

lobbies of the biggest hotels,” which are sometimes “booked solid — a

contrast to the moribund atmosphere there before the invasion.”

Newspapers are filled with ads from department stores, banks, and

insurance firms. “The upper class and the middle classes are doing

great,” a Western European diplomat observes: “They had the money in

U.S. bank accounts and are bringing it back to the country. But the poor

are in bad shape, because the government is bankrupt and can’t help

them.” “The Catholic Church has begun to denounce what it sees as a lack

of government concern for the poor,” Oppenheimer continues. An editorial

in a Church weekly “lashed out at authorities for devoting their

energies to helping the private sector while breaking their original

promises not to fire low-income public workers.”[37]

Chalk up another victory for capitalism and democracy.

On August 2, the Catholic bishops of Panama issued a pastoral letter

condemning U.S. “interference in the country’s internal affairs” and

denouncing the December invasion as “a veritable tragedy in the annals

of the country’s history.” The statement also condemned Washington’s

failure to provide aid to the people who continue to suffer from the

invasion, and criticized the government for ignoring their plight. Their

protest appears in the Guatemala City Central America Report under the

heading “Church Raises Its Voice” — though not loudly enough to be heard

in Washington and New York. The same report quotes the Mexican daily

Excelsior on U.S. military maneuvers in the mountains of Panama, and the

high visibility of U.S. troops throughout the capital and other areas of

the country.[38]

In April, President Endara had appointed a commission (the Panamanian

Commission for National Reconstruction) to deal with the problem of

reconstructing the economy that had been devastated by the U.S. economic

sanctions, then the invasion and its aftermath. Its report, issued in

August, proposed a three-point plan: a truce, political amnesty, and the

end of “occupation of the State and its territory” by U.S. troops.

Special emphasis was placed on the consequences of the U.S. invasion,

and the demand for the end to the military occupation and

reestablishment of Panamanian sovereignty.[39]

In the British journal Race and Class, Joy James reviews some relevant

history. The White (European) sector, which owns most of the land and

resources, is estimated at about 8% of the population. The “two decades

of military rule” to which the Miami Herald refers had some other

characteristics as well. The Torrijo dictatorship had a populist

character, which largely ended after his death in 1981 in an airplane

accident (with various charges about the cause), and the subsequent

Noriega takeover. During this period, Blacks, Mestizo, and Indigenous

Panamanians gained their first share of power, and economic and land

reforms were undertaken. In these two decades, infant mortality declined

from 40% to less than 20% and life expectancy increased by nine years.

New hospitals, health centers, houses, schools and universities were

built, and more doctors, nurses and teachers were trained. Indigenous

communities were granted autonomy and protection for their traditional

lands, to an extent unmatched in the hemisphere. For the first time,

Panama moved to an independent foreign policy, still alive in the 1980s

to an extent, as Panama participated in the Contadora peace efforts (one

of the main reasons why Noriega was transmuted from good guy to devil).

The Canal Treaty was signed in 1977, theoretically awarding control over

the Canal to Panama by the year 2000, though the prospects are doubtful.

The Reagan administration took the position that “when the

Carter-Torrijos treaties are being renegotiated” — an eventuality taken

for granted — “the prolongation of the US military presence in the

Panama Canal area till well after the year 2000 should be brought up for

discussion” (State Department).[40]

The post-invasion moves to place Panamanian military forces under U.S.

control may be motivated by more than just the normal commitment to this

doctrine. It will probably be argued that Panama is not in a position to

defend the Canal as the Treaty requires, so that U.S. bases must be

retained.

The U.S. sanctions largely dismantled the reforms of the Torrijo period.

Poverty rose rapidly, and the unions virtually collapsed. The invasion

and the U.S. post-invasion rule are likely to administer the coup de

grace to these populist efforts.

In August, government economists warned that more than 300,000

Panamanians are unemployed or underemployed, some 40% of the population.

One leading economist and former high government planning official

reported that 44% of the population lives in poverty, 24% in “extreme

poverty,” and that 93,800 infants and pre-school children live “in

misery,” while 35% of infants are malnourished. To check rising

unemployment, he estimates, 190,000 jobs new jobs will be needed this

year alone.[41]

The problems faced by the usual victims are described out of the

mainstream by labor journalist Daphne Wysham. She reports that the U.S.

invasion virtually completed the destruction of the Panamanian trade

unions. The general secretary of the Inter-American Regional

Organization of Workers (ORIT), Luis Anderson, condemned the invading

troops for arresting three top Panamanian labor leaders. “Many union

offices have been raided and sacked. The journalists union has been

banned.” These steps by the occupying forces are part of a more general

attack on independent politics. In an interview before the invasion, one

Panamian labor leader later detained by U.S. troops reported that he and

other union leaders were informed by the State Department that they were

on a list of people who would be eliminated if they didn’t “get their

feet in support of the opposition” to Noriega. Union activists

interviewed by Joy James report similar pre-invasion threats by the

AFL-CIO, which, they say, is now working to create a new “parallel

organization” that will be better-behaved, following its traditional

union-busting policies..

Teresa Guttierez, a spokesperson for former U.S. Attorney-General Ramsey

Clark, who heads a Panamanian inquiry commission, reports that new labor

laws disallow the right to hold union meetings, the right to protest,

and the right to strike, and that trade unionists are rounded up on a

regular basis and held without charges.[42]

The same picture emerges from the occasional reports in the mainstream

media. Pamela Constable reports that “bankers and business owners” find

that things are looking up, though “a mood of anger and desperation

permeates the underclass” in “the blighted shantytowns.” Vice-president

Guillermo Ford says that “The stores have reopened 100 percent, and the

private sector is very enthusiastic. I think we’re on the road to a very

solid future.” Under his “proposed recovery program,” public enterprises

would be sold off, “the labor code would be revised to allow easier

dismissal of workers and tax-free export factories would be set up to

lure foreign capital.”

Business leaders “are bullish on Ford’s ideas,” Constable continues. In

contrast, “Labor unions are understandably wary of these proposals,” but

“their power has become almost negligible” with “massive dismissals of

public workers who supported Noriega and the unprecedented jobless

rate.” The U.S. emergency aid package approved by Congress is intended

largely “to make back payments on Panama’s foreign debt and shore up its

creditworthiness with foreign lending institutions”; in translation: it

is a taxpayer subsidy to international banks, foreign investors, and the

important people in Panama. The thousands of refugees from El Chorillo,

now living in what some of them call “a concentration camp,” will not be

returning to the devastated slum. The original owners, who had long

wanted “to transform this prime piece of real estate into a posher

district,” may now be able to do so. Noriega had stood in the way of

these plans, allowing the poor to occupy housing there rent-free. But by

bombing the neighborhood into rubble and then levelling the charred

ruins with bulldozers, U.S. forces overcame “that ticklish legal and

human obstacle” to these intentions, Constable reports.[43]

With unemployment skyrocketing, nearly half the population cannot meet

essential food needs. Crime has quadrupled. Aid is designated for

businesses and foreign banks (debt repayment). It could be called the

“Central Americanization” of Panama, correspondent Brook Larmer aptly

observes in the Christian Science Monitor.[44]

The U.S. occupying forces continue to leave little to chance. The

Mexican journal Excelsior reports that the U.S. forces have established

direct control over ministries and public institutions. According to an

organization chart leaked to the journal by political and diplomatic

sources, U.S. controls extend to all provinces, the Indian community,

the Town Halls of the ten major cities, and the regional police offices.

“Washington’s objective is to have a strategic network in this country

to permanently control all the actions and decisions of the government.”

With the establishment of this “parallel government” closely controlling

all decision-making, “things have returned to the way they were before

1968 in Panama.” The journal scheduled an interview with President

Endara to discuss the matter, but it was cancelled without

explanation.[45]

The report provides extensive details, including names of U.S. officials

and the tasks assigned them in the organization chart. All of this could

easily be checked by U.S. reporters, if home offices were interested.

They are not. “The information that we reveal here,” Excelsior reports,

“is supposed to be known only to very restricted groups” — not including

the U.S. public.

The regime put in power is to be a well-behaved puppet, with no populist

heresies or thoughts of independence. That is the firm policy goal. It

might well have been the policy goal of Saddam Hussein in Kuwait, had

international sanctions not been applied in outrage over his nefarious

aggression. The efficient way, after all, is to rule through locals who

can be trusted, with ample force on the ready, just in case.

The occupying forces are not only dedicated to restoring the rule of the

traditional European oligarchy and its foreign associates, but also to

ensuring that the project is not troubled by such irritants as freedom

of expression. Excelsior reports that “United States intelligence

services exercise control not only over local information media but also

over international news agencies,” according to the president of the

Journalist Union of Panama. He adds that the goal is to make the world

believe that there is freedom and democracy, whereas in reality

broadcast stations have been taken over and placed “in custody” and

dozens of journalists have been fired. An opposition activist alleges

that the first Panamanian publishing company, ERSA, with three daily

papers, was occupied by U.S. tanks and security forces “in order to turn

it over to a businessman who had lost it in a lawsuit,” a member of an

oligarchical family that “favors the interventionist line of the United

States.”[46]

According to Ramsey Clark’s Independent Commission of Inquiry, the

offices of the daily La Republica “were ransacked and looted by U.S.

troops the day after the newspaper reported on the large number of

deaths caused by the U.S. invasion.” Its editor was arrested and held

for six weeks by U.S. troops, then sent to a Panamanian prison without

charges. The publisher of one of the few opposition voices was arrested

in March on charges of alleged misconduct when he was a government

minister, and the government closed a radio station for broadcasting

editorials critical of the U.S. invasion and the government it

established.[47]

Miguel Antonio Bernal, a leading Panamanian intellectual and

anti-Noriega activist, writes that “freedom of press is again under

siege in Panama.” Vice-president Ricardo Arias Calderon has proposed a

new law to restrict press criticism of the government, saying that “We

will not tolerate criticism.” He has also urged stockholders of Panama’s

largest newspaper, La Prensa, to fire its editor and founder Roberto

Eisenman because of the journal’s criticism of the government, and has

called on members of his Christian Democratic Party to work for

Eisenman’s ouster. Describing such acts, the increasing terror, and the

reconstruction of the military with Noriega associates who were

implicated in drug running and corruption, Bernal asks why the U.S. is

“turning the same blind eye” as in the past to these developments.[48]

Bernal’s question is surely rhetorical. Latin Americans know the answer

very well, though the question could hardly be addressed in the

fanatically ideological intellectual culture to the North.

Not only the military, but the bankers and businessmen restored to power

in the December invasion as well had close links to the drug trade.

Justice Department and Senate inquiries had identified Panamanian banks

as major conduits for drug money in the early 1980s, when Noriega was

still a great friend, and high officials of the new government,

including President Endara, were closely involved with banks charged

with money laundering as directors or in other ways. In September, the

U.S. Embassy “implicated President Endara in a money laundering scheme”

(Central America Report, Guatemala). DEA officials accused 7 Panamanian

banks of laundering drug money and protecting the accounts of

drug-traffickers, including the Interbanco, directed by Endara until he

took over the presidency in January 1990, which was charged with

protecting millions of dollars belonging to Colombian druglord Gonzalo

Rodriguez Gacha (since killed). U.S. Ambassador Hinton charged further

that the “Colombian mafia” continues to use Panama for drug shipment to

Europe and the United States. At the heart of the controversy is a U.S.

demand for access to information about bank depositors in Panama, which

the financial community there claims would undermine the international

banking sector by eliminating confidentiality (and might be used for the

U.S. for its own purposes under a drug cover). The alleged U.S. concerns

about drug trafficking might be a bit more credible if we were to

witness raids by Delta Force on the executive headquarters of the U.S.

corporations that supply the drug cartel with the chemicals they need

for cocaine production — or if the U.S. government were not applying

strong pressures on Asian countries to remove barriers on advertising

and marketing of lethal addictive drugs produced in the United States

(tobacco, a far worse killer than cocaine).[49]

Those not restricted to the quality press here will also learn that

President Endara’s government received “one of its worst diplomatic

setbacks” on March 30, when it was formally ousted from the Group of

Eight (now Argentina, Brazil, Colombia, Mexico, Peru, Uruguay,

Venezuela), what are considered the major Latin American democracies.

Panama had been suspended from the group in 1988 in reaction to

Noriega’s repression, and with the further deterioration of the

political climate under foreign occupation, Panama was ousted

permanently at the March meeting of foreign ministers. The Group of

Eight, now Seven, issued a resolution stating that “the process of

democratic legitimation in Panama requires popular consideration without

foreign interference, that guarantees the full right of the people to

freely choose their governments.” The resolution also indicated that the

operations of the U.S. military are affecting Panama’s sovereignty and

independence as well as the legality of the Endara government. This

decision extends the pattern of strong Latin American opposition to the

earlier U.S. measures against Panama and the invasion, from the outset,

when the Organization of American States condemned U.S. moves by a vote

of 17–1 (U.S. opposed) in July 1987. As the media here barely noted,

President Endara’s inaugural address four weeks after the invasion was

boycotted by virtually all Latin American ambassadors.[50]

The Washington-media position is that the Endara government is

legitimate, having won the 1989 elections that were stolen by Noriega.

Latin American opinion commonly takes a different view.

In 1989, Endara was running against Noriega, with extensive U.S.

backing, open and covert. Furthermore, the elections were conducted

under conditions caused by the illegal U.S. economic warfare that was

demolishing the economy. The United States was therefore holding a whip

over the electorate. For that reason alone the elections were far from

free and uncoerced, by any sensible standards. Today, the political

scene is quite different — or would be, if the U.S. were to tolerate

political activity and free expression. On these grounds, there would be

every reason to organize a new election, contrary to the wishes of

Endara and his U.S. sponsors. Polls in Panama show that over half the

population would vote for a new party or new alliance if elections were

to be permitted.[51] The official position is offered by Michael Massing

in the New York Review of Books. Reporting from Panama, he writes that

Endara’s willingness to “go along” with the U.S. request that he assume

the presidency “has caused the leaders of some Latin American countries,

such as Peru, to question his legitimacy.” “The Panamanians themselves,

however, have few such qualms,” because his “clear victory” in the 1989

election “provided Endara with all the credentials he needs.” Citation

of Peru for dragging its feet is a deft move, since President Garcia was

an official enemy of the U.S. who had been recalcitrant about Nicaragua,

had restricted debt payment, and in general failed to observe proper

standards; best to overlook the rest of the Group of Eight, however,

among “some Latin American countries.” As for the views of “the

Panamanians themselves,” no further indication is given as to how this

information was obtained.[52]

Massing reports on the police raids in poor neighborhoods, the protests

of homeless and hungry people demanding jobs and housing, the

reconstruction of Noriega’s PDF, the restoration of the oligarchy with a

“successful corporate lawyer” at the head of a government “largely made

up of businessmen,” who receive U.S. corporate visitors sponsored by

OPIC (which ensures U.S. investments abroad) “as if they were visiting

heads of state.” The business climate is again “attractive” in this

“land ruled by merchants, marketers, and moneylenders.” “The government

is drafting plans to revive Panama’s banking industry, relax its labor

laws, expand the free trade zone, and attract foreign investors,” and to

privatize state enterprises and “radically cut public spending.”

Drawn from the “tiny white elite” of under 10% of the population, the

government has been accused of “wanting to turn the clock back to 1968,

when a small rich group ruled the country” — namely, exactly the group

now restored to power. But “the charge is unfair,” Massing comments —

much like the charge that the conservative populists swept into office

in the democratic wave of free elections in Central America might have

something on their minds other than helping the poor when they opt for a

trickle-down strategy. The proof that the charge is unfair, Massing

explains, is that when employees from Air Panama fearful of losing their

jobs held a vigil outside his office, President Endara “sent them coffee

and made a point of talking with them.” What is more, while fasting in

the Cathedral in an effort to expedite U.S. aid (or to lose weight, some

unkind locals quipped), “he invited striking sanitation workers in for a

chat and eventually negotiated a settlement.” Furthermore,

Vice-President Arias Calderon has said that he wants the government to

correct disparities created by the market. True, no projects that might

illustrate these plans “are in the works” and the Endara government

“opposes the idea” of using U.S. aid for such purposes, “determined to

leave virtually everything to the private sector.” But that proves

nothing, in the face of the powerful evidence showing that “the charge

is unfair,” just reviewed in its entirety.

Massing is not pleased with the outcome, particularly, the restoration

of Noriega’s PDF, “despite all the good intentions” of the United States

(taken as given, in accordance with the norms of the intellectual

culture), and its efforts “to atone for its past misbehavior.” The

problem does not lie in the U.S. military aid programs, which have

trained security forces that “have been guilty of horrible excesses” in

El Salvador, Guatemala, Honduras, and Noriega’s Panama (and other cases

unmentioned). Rather, the problem lies in what the U.S. “had to work

with.” It’s those folks who are bad, not us, please.

The consistent effects of our military training, the policies of which

it is a part, the documentary record explaining the reasons — all may be

put aside, irrelevant, along with all of history. We are always willing

to admit that there were aberrations in the past. But at every moment of

time, we have changed course and put the errors of the past behind us.

We are Good, our intentions are Good. Period.

Part II

January, 1991

The first part of this series (Z, November) opened with the conventional

interpretation of the past decade: the U.S. won the Cold War, a victory

for the forces of righteousness. We then turned to the question that

would at once come to the mind of anyone apart from the most fanatic

ideologue: How are the victors faring at this historic moment, as they

celebrate their triumph? We looked first at those who should be the most

overjoyed because of their unusual good fortune: our “little brown

brothers” in Central America and Panama, who have long been under the

protective wing of the leader of the crusade, becoming a foreign policy

obsession in the past decade. The conditions of their existence help us

understand why the obvious questions about the Grand Victory of

democracy and free market capitalism are so scrupulously avoided in

polite and cultivated circles. Needless to say, the beneficiaries of our

solicitude have some thoughts of their own about these matters. We will

turn in the final section to their interpretation of the triumph of

capitalism and freedom, and the nobility of their protector — thoughts

that do not penetrate the well-disciplined commissar culture at home.

Let us now extend the survey to other regions where the virtuous leaders

of the crusade for freedom and justice have long held sway and have thus

been able to realize their noble objectives with no more than marginal

interference from Communists and other evil forces, beginning with the

rest of Latin America.

The Fruits Of Victory: Latin America

A World Bank study in 1982 estimated that “40 percent of households in

Latin America live in poverty, meaning that they cannot purchase the

minimum basket of goods required for the satisfaction of their basic

needs, and…20 percent of all households live in destitution, meaning

that they lack the means of buying even the food that would provide them

with a minimally adequate diet.” The situation became far worse through

the victorious 1980s, largely because of the huge export of capital to

the West. From 1982 to 1987 this amounted to about $250 billion, 25

times the total value of the Alliance for Progress and 15 times the

Marshall Plan. The Bank for International Settlements in Switzerland

estimates that between 1978 and 1987, some $170 billion in flight

capital left Latin America, not including money hidden by falsified

trade transactions. The New York Times cites another estimate that

anonymous capital flows, including drug money and flight capital, total

$600 billion to $800 billion.

This huge hemorrhage is part of a complicated system whereby Western

banks and Latin American elites enrich themselves at the expense of the

general population of Latin America, which is saddled with the “debt

crisis” that results from these manipulations, and of taxpayers in the

Western countries who are ultimately called upon to foot part of the

bill. These are among the triumphs of free market capitalism that we now

celebrate — apart from a few perpetual complainers who are “as welcome

as gnats at a nudist party,” a New York Times reviewer comments,

referring to Murray Bookchin.

Speaking in Washington in preparation for the 1989 General Assembly of

the OAS, which he headed, Brazilian President Soares described the 1980s

as a “lost decade” for Latin America, with falling personal income and

general economic stagnation or decline. In 1988 average income had

fallen to the level of 1978. There was a further decline in 1989, and

the export of capital continued in a flood, the UN Economic Commission

for Latin America and the Caribbean reported.

According to World Bank figures, average per capita income in Argentina

fell from $1,990 in 1980 to $1,630 in 1988. Mexico’s GNP declined for

seven straight years. Real wages in Venezuela has fallen by a third

since 1981, to the 1964 level. Argentina allotted 20 percent of its

budget to education in 1972, 6 percent in 1986. David Felix, a leading

specialist on Latin American economics, writes that per capita output

and real investment per worker declined sharply in the 1980s, the latter

falling to below 1970 levels in most of the heavily indebted countries,

where urban real wages are in many cases 20 percent to 40 percent below

1980 levels, even below 1970 levels. The brain drain quickened and

physical and human capital per head shrank because of the decline of

public and private investment and collapse of infrastructure. Much of

the sharp deterioration of the 1980s, Felix and others conclude, can be

traced to the free-market restructuring imposed by the industrial

powers.

Mexicans continue to flee to the United States for survival, and macabre

stories abound, some hard to believe but important for what they

indicate about the prevailing mood. Reporting the annual meeting of the

Border Commission on Human Rights in Mexico, Mexico’s leading daily

(Excelsior) alleges that actions of the U.S. Border Patrol cause the

drowning of persons seeking to cross the river to the United States. A

representative of the regional Human Rights Committee told the session

that 1,000 people had disappeared without a trace after leaving their

homes to enter the U.S. illegally. She “also added that the

disappearance or theft of women for the extraction of organs for use in

transplants in the U.S. is common.” Others reported torture, high rates

of cancer from chemicals used in the maquiladora industries (mainly

subsidiaries of transnationals supplying U.S. factories), secret

prisons, kidnapping, and other horror stories. The journal also reports

a study by environmental groups, presented to President Salinas,

claiming that 100,000 children die every year as a result of pollution

in the Mexico City area, along with millions suffering from

pollution-induced disease, which has reduced life expectancy by an

estimated 10 years. The “main culprit” is the emissions of lead and

sulfur from operations of the national petrochemical company Pemex,

which is free from the controls imposed elsewhere — one of the

advantages of Third World production that is not lost on investors.

The Mexican Secretariat of Urban Development and the Environment

described the situation as “truly catastrophic,” Excelsior reports

further, estimating that less than 10 percent of Mexican territory is

able to support “minimally productive agriculture” because of

environmental degradation, while water resources are hazardously low.

Many areas are turning into “a real museum of horrors” from pollution

because of the blind pursuit of profits on the part of national and

international private capital. The Secretariat estimates further that

more than 90 percent of industry in the Valley of Mexico, where there

are more than 30,000 plants, violate global standards, and in the

chemical industry, more than half the labor force suffers irreversible

damage to the respiratory system.

Maude Barlow, chairperson of a Canadian study group, reports the results

of their inquiry into maquiladoras “built by Fortune 500 to take

advantage of a desperate people,” for profits hard to match elsewhere.

They found factories full of teenage girls, some 14-years-old, “working

at eye-damaging, numbingly repetitive work” for wages “well below what

is required for even a minimum standard of living.” Corporations

commonly send the most dangerous jobs here because standards on

chemicals are “lax or non-existent.” “In one plant,” she writes, “we all

experienced headaches and nausea from spending an hour on the assembly

line” and “we saw young girls working beside open vats of toxic waste,

with no protective face covering.” Unions are barred, and there is an

ample reserve army of desperate people ready to take the place of any

who “are not happy, or fall behind in quotas, or become ill or

pregnant.” The delegation “took pictures of a lagoon of black, bubbling

toxic waste dumped by plants in an industrial park,” following it to

“where it met untreated raw sewage and turned into a small river running

past squatters’ camps (where children covered in sores drank Pepsi Cola

from baby bottles) to empty into the Tijuana River.”

It is more fashionable to bemoan the environmental and human

catastrophes of Eastern Europe, the results of an evil system now

happily overcome in a victory for our humane values.

Colombia is another success story of capitalist democracy, flawed only

by the drug cartels — and for some of those gnats who still fail to

appreciate the wonders of our system, by such marginal problems as the

murder of “subversives” — such as 1,000 members of the leading

opposition party and 3 of its presidential candidates — by death squads

in league with the security forces.

There is also a background, though one would be hard put to find a

discussion of it in recent commentary on U.S. efforts to aid the

Colombian military in the “war against drugs.” The topic is addressed in

a discussion of human rights in Colombia by Alfredo Vasquez Carrizosa,

president of the Colombian Permanent Committee for Human Rights. “Behind

the facade of a constitutional regime,” he observes, “we have a

militarized society under the state of siege provided” by the 1886

Constitution. The Constitution grants a wide range of rights, but they

have no relation to reality. “In this context poverty and insufficient

land reform have made Colombia one of the most tragic countries of Latin

America.” Land reform, which “has practically been a myth,” was

legislated in 1961, but “has yet to be implemented, as it is opposed by

landowners, who have had the power to stop it” — again, no defect of

‘’democracy,” by Western standards. The result of the prevailing misery

has been violence, including la Violencia of the 1940s and 1950s, which

took hundreds of thousands of lives. “This violence has been caused not

by any mass indoctrination, but by the dual structure of a prosperous

minority and an impoverished, excluded majority, with great differences

in political participation,” the familiar story.

The story has another familiar thread. “But in addition to internal

factors,” Vasquez Carrizosa continues, “violence has been exacerbated by

external factors. In the 1960s the United States, during the Kennedy

administration, took great pains to transform our regular armies into

counterinsurgency brigades, accepting the new strategy of the death

squads.” These Kennedy initiatives “ushered in what is known in Latin

America as the National Security Doctrine, …not defense against an

external enemy, but a way to make the military establishment the masters

of the game… [with] the right to combat the internal enemy, as set forth

in the Brazilian doctrine, the Argentine doctrine, the Uruguayan

doctrine, and the Colombian doctrine: it is the right to fight and to

exterminate social workers, trade unionists, men and women who are not

supportive of the establishment, and who are assumed to be communist

extremists. And this could mean anyone, including human rights activists

such as myself.”

A study by Evan Vallianatos of the U.S. government Office of Technology

Assessment amplifies the dimensions of the victory of capitalist

democracy here. “Colombia’s twentieth century history is above all

stained in the blood of the peasant poor,” he writes, reviewing the

gruesome record of atrocities and massacre to keep the mass of the

population in its place. The U.S. Aid program, the Ford Foundation, and

others have sought to deal with the plight of the rural population “by

refining the largely discredited trickle-down technology and knowledge

transfer process,” investing in the elite and trusting in “competition,

private property, and the mechanism of the free market” — a system in

which “the big fish eats the small one,” as one poor farmer observes.

These policies have made the dreadful conditions still worse, creating

“the most gross inequalities that the beast in man has made possible.”

It is not only the rural poor who have suffered beyond endurance. To

illustrate the kind of development fostered by the multinational

corporations and the technocrats, Vallianatos offers the example of the

small industrial city of Yumbo, “rapidly becoming unfit for human

habitation” because of uncontrolled pollution, decay, and “corrosive

slums” in which “the town’s spent humanity has all but given up.”

Another victory for our side.

Brazil is another country with rich resources and potential, long

subject to European influence, then U.S. intervention, primarily since

the Kennedy years. We cannot, however, simply speak of “Brazil.” There

are two very different Brazils. In a major scholarly study of the

Brazilian economy, Peter Evans writes that “the fundamental conflict in

Brazil is between the 1, or perhaps 5, percent of the population that

comprises the elite and the 80 percent that has been left out of the

‘Brazilian model’ of development.” The Brazilian journal Veja reports on

these two Brazils, the first modern and westernized, the second sunk in

the deepest misery. Seventy percent of the population consumes fewer

calories than Iranians, Mexicans, or Paraguayans. Over half the

population have family incomes below the minimum wage. For 40 percent of

the population, the median annual salary is $287, while inflation

skyrockets and necessities are beyond reach. A World Bank report on the

Brazilian educational system compares it unfavorably to Ethiopia and

Pakistan, with a dropout rate of 80 percent in primary school, growing

illiteracy, and falling budgets. The Ministry of Education reports that

the government spends over a third of the education budget on school

meals, because most of the students will either eat at school or not at

all.

The journal South, which describes itself as “The Business Magazine of

the Developing World,” reports on Brazil under the heading “The

Underside of Paradise.” A country with enormous wealth, no security

concerns, a relatively homogeneous population, and a favorable climate,

Brazil nevertheless has problems: “The problem is that this cornucopia

is inhabited by a population enduring social conditions among the worst

in the world. Two-thirds do not get enough to eat. Brazil has a higher

infant mortality rate than Sri Lanka, a higher illiteracy rate than

Paraguay, and worse social indicators than many far poorer African

countries. Fewer children finish first-grade school than in Ethiopia,

fewer are vaccinated than in Tanzania and Botswana. Thirty-two percent

of the population lives below the poverty line. Seven million abandoned

children beg, steal and sniff glue on the streets. For scores of

millions, home is a shack in a slum, a room in the inner city, or

increasingly, a patch of ground under a bridge.”

The share of the poorer classes in the national income is “steadily

falling, giving Brazil probably the highest concentration of income in

the world.” It has no progressive income tax or capital gains tax, but

it does have galloping inflation and a huge foreign debt, while

participating in a “Marshall Plan in reverse,” in the words of former

President Jose Samey, referring to debt payments.

For three-quarters of the population of this cornucopia, the conditions

of Eastern Europe are dreams beyond reach, another triumph of the Free

World.

A UN “Report on Human Development” ranks Brazil, with the world’s

eighth-largest economy, in 80^(th) place in general welfare (as measured

by education, health, and hygiene), near Albania, Paraguay, and

Thailand. The UN Food and Agriculture Organization (FAO) announced on

October 18 that more than 40 percent of the population (almost 53

million people) are hungry. The Brazilian Health Ministry estimates that

840,000 children aged 1–4 and 420,000 newborns will die of hunger this

year.

Here too it is widely alleged that babies are sacrificed for organ

banks, a belief that can hardly be true but that reveals much about the

conditions under which it can take root. The Honduran press reported

that Brazilian babies had been rescued from a gang that “intended to

sacrifice them to organ banks in the United States, according to a

charge in the courts.” Brazil’s Justice Ministry ordered federal police

to investigate allegations that adopted children are being used for

organ transplants in Europe, a practice “known to exist in Mexico and

Thailand,” the London Guardian reports, adding that “handicapped

children are said to be preferred for transplant operations” and

reviewing the process by which children in Brazil are kidnapped,

“disappeared,” or given up by impoverished mothers, then adopted or used

for transplants.

It would only be fair to add that the authorities are concerned with the

mounting problem of homeless and starving children and are trying to

reduce their numbers. Amnesty International reports that death squads,

often run by the police, are killing street children at a rate of about

one a day, while “many more children, forced onto the streets to support

their families, are being beaten and tortured by the police” (Reuters,

citing AI). “Poor children in Brazil are treated with contempt by the

authorities, risking their lives simply by being on the streets,” AI

alleges. Most of the torture takes place under police custody or in

state institutions. There are few complaints by victims or witnesses

because of fear of the police, and the few cases that are investigated

judicially result in light sentences.

Recall that these are the conditions that hold on the 25^(th)

anniversary of “the single most decisive victory of freedom in the

mid-twentieth century” (Kennedy Ambassador Lincoln Gordon), that is, the

overthrow of parliamentary democracy by Brazilian generals backed by the

United States, which then praised the “economic miracle” produced by the

neo-Nazi national security state they established. In the months before

the generals’ coup, Washington assured its traditional military allies

of its support and provided them with aid, because the military was

essential to “the strategy for restraining left-wing excesses” of the

elected Goulart government, Gordon cabled the State Department. The U.S.

actively supported the coup, preparing to intervene directly if its help

was needed for what Gordon described as the “democratic rebellion” of

the generals. This “de facto ouster” of the elected president was “a

great victory for the free world,” Gordon reported with joy, adding that

it should “create a greatly improved climate for private investment.”

U.S. labor leaders also demanded their proper share of the credit for

the overthrow of the parliamentary regime, as the new government placed

in power by the generals proceeded to smash the labor movement and

subordinate poor and working people to the overriding needs of business

interests, primarily foreign. Secretary of State Dean Rusk justified

U.S. recognition for the obviously illegal regime on the grounds that

“the succession there occurred as foreseen by the [Brazilian]

Constitution,” which had just been blatantly violated. The U.S.

proceeded to provide ample aid as torture and repression mounted, the

relics of constitutional Government faded away, and the climate for

investors improved under the rule of what Washington hailed as the

“democratic forces.”

These events in Latin America’s most powerful state initiated a domino

effect throughout the continent, leading to an unprecedented plague of

repression under the National Security doctrines crafted by the military

and political leaders of the hemisphere and their U.S. advisers.

The circumstances of the poor in Brazil continue to regress as austerity

measures are imposed on the standard International Monetary Fund formula

in an effort to deal somehow with this catastrophe of capitalism. The

austerity measures initiated by President Collor de Mello were initially

described as “populist,” harmful mostly to the wealthy. Predictably,

reality took a different course. Ken Silverstein reports that half a

year after the measures were inaugurated, “the rich are reassured.” The

IMF measures primarily harmed the poor, while wealthy individuals and

large companies were able to find ways to enrich themselves by

exploiting measures that in theory were devised to impose the main

burden on them. A study by the J. Walter Thompson agency concluded that

“Collor’s policies are not a threat to the wealthy…. The rich are now

leading absolutely normal lives” (agency vice-president Celia

Chiavolle). Businessmen, bankers, and the U.S. Chamber of Commerce

express their pleasure in the course of policy, while “the working class

has been pushed to the wall,” Silverstein adds, with hundreds of

thousands fired and purchasing power reduced to a historic low, well

below minimal needs for about half the population.

The situation is similar in Argentina, where the Christian Democratic

Party called on its members to resign from the cabinet in March “in

order not to validate, by their presence in the government, the

anti-popular [economic] measures of the regime.” In a further protest

over these measures, the Party expelled the current Minister of the

Economy. Experts say that the socioeconomic situation has become

“unbearable.”

The terrible fate of Argentina is addressed in a report in the

Washington Post by Eugene Robinson. One of the ten richest countries in

the world at the turn of the century, with rich resources and great

advantages, Argentina is becoming a Third World country, Robinson

observes. About one-third of its 31 million inhabitants live below the

poverty line. Some 18,000 children die each year before their first

birthday, most from malnutrition and preventable disease The capital,

once considered “the most elegant and European city this side of the

Atlantic,” is “ringed by a widening belt of shantytowns, called villas

miserias, or ‘miseryvilles,’ where the homes are cobbled- together huts

and the sewers are open ditches.” Here too the IMF-style reforms “have

made life even more precarious for the poor”

Robinson’s article is paired with another entitled “A Glimpse Into the

Lower Depths,” devoted to a mining town in the Soviet Union Subtitled “A

mining town on the steppes reveals ‘the whole sick system’,” the article

stresses the comparison to capitalist success. The article on Argentina,

however, says nothing about any “sick system.” The only hint of a reason

for the catastrophe in Argentina, or the general “economic malaise” in

Latin America, is in a statement by a planning minister that “we

destroyed ourselves” by “economic mismanagement.” Again the usual

pattern: their crimes reveal their evil nature, ours are the result of

personal failings and the poor human material with which we are forced

to work in the Third World.

David Felix concludes that Argentina’s decline results from “political

factors such as prolonged class warfare and a lack of national

commitment on the part of Argentina’s elite,” which took advantage of

the free-market policies of the murderous military dictatorship that

were much admired here. These led to massive redistribution of income

towards the wealthy and a sharp fall of per capita income, along with a

huge increase in debt as a result of capital flight, tax evasion, and

consumption by the rich beneficiaries of the “sick system” —

Reaganomics, in essence.

In oil-rich Venezuela, over 40 percent live in extreme poverty according

to official figures, and the food situation is considered

“hyper-critical,” the Chamber of Food Industries reported in 1989.

Malnutrition is so common that it is often not noted in medical

histories, according to hospital officials, who warn that “the future is

horrible.” Prostitution has also increased, reaching the level of about

170,000 women or more, according to the Ministry of Health. The Ministry

also reports an innovation, beyond the classic prostitution of women of

low in-come. Many “executive secretaries and housewives and college

students accompany tourists and executives during a weekend, earning at

times up to [about $150] per contact.” Child prostitution is also

increasing and is now “extremely widespread,” along with child abuse.

Brutal exploitation of women is a standard feature of the “economic

miracles” in the realms of capitalist democracy. The huge flow of women

from impoverished rural areas in Thailand to service the prostitution

industry — one of the success stories of the economic takeoff sparked by

the Indochina wars — is one of the many scandals that escape notice in

the admiration for the Free World triumph. The savage conditions of work

for young women largely from the rural areas are notorious; >young<

women, because few others are capable of enduring the conditions of

labor, or survive to continue with it.

Chile under the Pinochet dictatorship is another famous success story.

Under the heading “Tyrant’s ‘Success’ Leaves 7 of 12 Million Chileans

Poor,” Antonio Garza Morales reports in Excelsior that “the social cost

which has been paid by the Chilean people is the highest in Latin

America,” with the number of poor rising from 1 million after Allende to

7 million today, while the population remained stable at 12 million.

Christian Democratic Party leader Senator Anselmo Sule, returned from

exile, says that economic growth that benefits 10 percent of the

population has been achieved (Pinochet’s official institutions agree),

but development has not. Unless the economic disaster for the majority

is remedied, “we are finished,” he adds. According to David Felix,

“Chile, hit especially hard in the 1982–84 period, is now growing faster

than during the preceding decade of the Chicago Boys,” enthralled by the

free market ideology that is, indeed, highly beneficial for some: the

wealthy, crucially including foreign investors. Chile’s recovery, Felix

argues, can be traced to “a combination of severe wage repression by the

Pinochet regime, an astutely managed bailout of the bankrupt private

sector by the economic team that replaced the discredited Chicago Boys,

and access to unusually generous lending by the international financial

institutions,” much impressed by the favorable climate for business

operations.

Environmental degradation is also a severe problem in Chile. The Chilean

journal Apsi devoted a recent issue to the environmental crisis

accelerated by the “radical neoliberalism” of the period following the

U.S.-backed coup that overthrew the parliamentary democracy. Recent

studies show that about half the country is becoming a desert, a problem

that “seems much farther away than the daily poisoning of those who live

in Santiago,” the capital city, which competes with Sao Paolo (Brazil)

and Mexico City for the pollution prize for the hemisphere (for the

world, the journal alleges). “The liquid that emerges from the millions

of faucets in the homes and alleys of Santiago have levels of copper,

iron, magnesium and lead which exceed by many times the maximum

tolerable norms.” The land that “supplies the fruits and vegetables of

the Metropolitan Region are irrigated with waters that exceed by 1,000

times the maximum quantity of coliforms acceptable,” which is why

Santiago “has levels of hepatitis, typhoid, and parasites which are not

seen in any other part of the continent” (one of every three children

has parasites in the capital). Economists and environmentalists

attribute the problem to the “development model,” crucially, its

“transnational style,” “in which the most important decisions tend to be

adopted outside the ambit of the countries themselves,” consistent with

the assigned “function” of the Third World: to serve the needs of the

industrial West.

The fashion at home, as noted, is to attribute the problems of Eastern

Europe to the “sick system” (quite accurately), while ignoring the

catastrophes of capitalism or, on the rare occasions when some problem

is noticed, attributing it to any cause other than the system that

consistently brings it about. Latin American economists who have

attributed the problems of the region to the “development model” are

generally ignored, but some of them have been useful for ideological

warfare and therefore have attained respectability in the U.S. political

culture. One example is Francisco Mayorga, a Yale Ph.D. in economics,

who became one of the most respected commentators on the economic

affairs of Nicaragua in the 1980s because he could be quoted on the

economic debacle caused by the Sandinistas. He remained a U.S. favorite

as he became the economic Czar after the victory for the U.S. candidate

in the February 1990 election, though he disappeared from view when he

was removed after the failure of his highly-touted recovery policies

(which failed, in large part, because of U.S. foot-dragging, the UNO

government being nowhere near harsh and brutal enough for Washington’s

tastes).

But Mayorga was never quoted on what he actually wrote about the

Nicaraguan economy, which is not without interest. His 1986 Yale

doctoral dissertation is a study of the consequences for Nicaragua of

the development model of the U.S.-backed Somoza regime, and of the

likely consequences of alternative policy choices for the 1980s. He

concludes that “by 1978 the economy was on the verge of collapse”

because of the “exhaustion of the agroindustrial model” and the

“monetarist paradigm” that the U.S. favored. This model had led to huge

debt and insolvency, and “the drastic downturn of the terms of trade

that was around the corner was clearly going to deal a crucial blow to

the agroindustrial model developed in the previous three decades,”

leading “inexorably” to an “economic slump in the 1980s.” The immense

costs of the U.S.-backed Somoza repression of 1978–9 and the contra war

made the “inexorable” even more destructive. Mayorga estimates capital

flight from 1977 to 1979 at $500 million, and calculates the “direct

economic burden” of war from 1978 to 1984 at more than $3.3 billion.

That figure, he points out, is one and a half times the “record GDP

level of the country in 1977,” a year of “exceptional affluence” because

of the destruction of the Brazilian coffee crop, hence regularly used by

U.S. propagandists (including some who masquerade as scholars) as a base

line to prove Sandinista failures. The course of the economy from 1980,

Mayorga concludes, was the result of the collapse of the agroindustrial

export model, the severe downturn in the terms of trade, and the

unbearable burden of the 1978–9 war and then the contra war (his study

ends before the U.S. embargo exacerbated the crisis further). Sandinista

policies, he concludes, were ineffective in dealing with the

“inexorable” collapse: they “had a favorable impact on output and a

negative effect on rural wages and farming profits,” favoring industrial

profits and redistributing income “from the rural to the urban sector.”

Had there been “no war and no change in economic regime,” his studies

show, “the Nicaraguan economy would have entered a sharp slump.”

These conclusions being useless or worse, Mayorga’s actual work on the

Nicaraguan economy passes into the same oblivion as all other inquiries

into the catastrophes of capitalism. The example is noteworthy because

of Mayorga’s prominence, at the very same time, insofar as he could

serve a propaganda function for the media.

The Fruits Of Victory: The Caribbean

Brazil and Chile are not the only countries to have basked in praise for

their achievements after U.S. intervention set them on the right course.

Another is the Dominican Republic. After the latest U.S. invasion under

Lyndon Johnson in 1965, and a dose of death squads and torture,

democratic forms were established, and U.S. commentators have expressed

much pride in the peaceful transfer of power — or better, governmental

authority, power lying elsewhere. The economy is stagnant and near

bankrupt, public services function only intermittently, poverty is

endemic, malnutrition is increasing, and the standard of living of the

poor continues its downward slide. In the capital city, electricity

supply is down to four hours a day; water is available for only an hour

a day in many areas. Unemployment is rising, the foreign debt has

reached $4 billion, the 1989 trade deficit was $1 billion, up from $700

million the year before. Estimates of the number who have fled illegally

to the U.S. range up to a million. Without the remittances of Dominicans

working in Puerto Rico and on the U.S. mainland — illegally for the most

part — “the country could not survive,” the London Economics reports.

U.S. investors, assisted by Woodrow Wilson’s invasion and its aftermath,

later Johnson’s, had long controlled most of the economy. Now foreign

investment in 17 free trade zones is attracted by 15-year tax holidays

and average wages of 65 cents an hour. Some “remain upbeat about the

Dominican Republic’s situation,” the Business Magazine of the Developing

World (South) reports, citing U.S. ambassador Paul Taylor, who described

the new free trade zones as an economic miracle in a talk to the chamber

of commerce. There are some objective grounds for Taylor’s cheerful view

of the prospects, South observes: “Optimists point to the political and

labour harmony in the Dominican Republic, the substantial pool of cheap

workers and the transport, banking and communications services as

continuing strong incentives to investors. Indeed, as a Dominican

factory manager notes: ‘Anyone who gets involved in unions here knows

that they’ll lose their job and won’t work in the free trade zone any

more.’ ”

As in Brazil and elsewhere, the American Institute for Free Labor

Development (AIFLD), the AFL-CIO foreign affairs arm supported by the

government and major corporations, “has been instrumental in

discouraging hostile [sic] union activity in order to help U.S.

companies maximise their profits,” South reports. With friends like

these, Dominican workers have little to fear.

A more recent beneficiary of U.S. invasion, Panama, also has its share

of optimists, as discussed in the first part of this series, notably the

tiny white minority now restored to power and the U.S. businesspeople

who have revived Panama City’s night-life. As elsewhere in Latin

America, the plight of the unimportant people is deplored by sections of

the Church who persist in their old-fashioned “preferential option for

the poor,” not understanding the merits of the promising new “trickle

down” techniques of raising them from their misery.

Elsewhere in the Caribbean basin, we find much the same picture,

including Grenada, also liberated by U.S. benevolence, then restored to

its proper status (see my article in Z, March 1990). The U.S. pursued a

different path to ensure virtuous behavior in the case of Jamaica.

Upstarts led by the social democrat Michael Manley and his People’s

National Party (PNP) sought to explore the forbidden path of independent

development and social reform in the 1970s, eliciting the usual

hostility from the United States and sufficient pressures to achieve an

electoral victory for U.S. favorite Edward Seaga, who pledged to put an

end to such nonsense. Seaga’s pursuit of proper free market principles

was lauded by the Reagan administration, which announced grandly that it

would use this opportunity to create a showcase for democracy and

capitalism in the Caribbean. Massive aid flowed. USAID spent more on

Jamaica than on any other Caribbean program. The World Bank also joined

in to oversee and expedite this estimable project. Seaga followed all

the rules, introducing austerity measures, establishing Free Trade Zones

where non-union labor, mostly women, work in sweatshops for miserable

wages in foreign-run plants subsidized by the Jamaican government, and

generally keeping to the IMF prescriptions.

There was some economic growth, “mainly as a result of laundered ‘ganja’

dollars from the marijuana trade, increased tourism earnings, lower fuel

import costs, and higher prices for bauxite and alumina,” the North

American Congress on Latin America (NACLA) reports. The rest was the

usual catastrophe of capitalism, including one of the highest per capita

foreign debts in the world, collapse of infrastructure, and general

impoverishment. According to USAID, by March 1988, along with its

“crippling debt burden,” Jamaica was a country where economic output was

“far below the production level of 1972,” “distribution of wealth and

income is highly unequal,” “shortages of key medical and technical

personnel plague the health system,” “physical decay and social violence

deter investment,” and there are “severe deficits in infrastructure and

housing.” The assessment was made six months before hurricane Gilbert

dealt a further blow.

At this point, Michael Manley, now properly tamed, was granted the right

to return to power to administer the ruins, all hope for constructive

change having been lost. Manley “is making all the right noises” to

reassure the Bank and foreign investors, Roger Robinson, World Bank

senior economist for Jamaica, said in a June 1988 pre-election

interview. He explained further that “Five years ago, people were still

thinking about ‘meeting local needs,’ but not any more. Now the lawyers

and others with access to resources are interested in external export

investment. Once you have that ingrained in a population, you can’t go

back easily, even if the PNP and Michael Manley come in again. Now

there’s an understanding among individuals who save, invest, and develop

their careers that capital will start leaving again if the PNP, or even

[Seaga’s] JLP, intervenes too much.”

Returned to office, Manley recognized the handwriting on the wall,

outdoing Seaga as an enthusiast for free market capitalism. “The old

gospel that government should be operated in the interests of the poor

is being modified, even if not expressly rejected, by the dawning

realization that the only way to help the poor is to operate the

government in the interest of the productive!” the journal of the

Private Sector of Jamaica exulted — here the term “productive” does not

refer to the people who produce, but to those who manage, control

investment, and reap profits. The public sector is “on the verge of

collapse,” the Private Sector report continues, with schools, health

care and other services rapidly declining. But with the “nonsensical

rhetoric of the recent past” abandoned, and privatization of everything

in sight on the way, there is hope — for “the productive,” in the

special intended sense.

Manley has won new respect from the important people now that he has

learned to play the role of “violin president,” in Latin American

terminology: “put up by the left but played by the right.” The

conditions of capital flight and foreign pressures — state, private, and

international economic institutions — have regularly sufficed to bar any

other course.

The Fruits Of Victory: Asia

Turning to Asia, a serious inquiry into the victory of freedom,

capitalism, and democracy will naturally begin with the Philippines,

which has benefited from U.S. solicitude for close to a century. The

desperate state of Filipinos is reviewed in the Far Eastern Economic

Review, firmly dedicated to economic liberalism and the priorities of

the business community, under the heading “Power to the plutocrats.” Its

reports conclude that “Much of the country’s problems now…seem to be

rooted in the fact that the country has had in its entire history no

form of social revolution.” The consequences of this failure include

“the jinxed land reform programme,” a failure that “profoundly affects

the prognosis for the incidence of poverty” among the 67 percent of poor

Filipino families living in rural areas, condemning them to permanent

misery, huge foreign debt, “massive capital flight,” an increase in

severe malnutrition among pre-school children since the Aquino

Government took power, widespread underemployment, and survival for many

on incomes far below Government-defined poverty thresholds, “the growth

of a virtual society of beggars and criminals,” and the rest of the

familiar story. Government and academic experts expect things to get

considerably worse. For the “rapidly expanding disadvantaged,” the only

way out is to seek work abroad: “legal and illegal workers from the

Philippines now comprise the greatest annual labour exodus in Asia.”

With social programs abandoned, the only hope is if “the big-business

elite, in a situation of little government interference, foregoes the

Philippine elite traditional proclivity towards conspicuous consumption,

and instead use profits both for their employees’ welfare and to

accumulate capital for industrial development.”

Their failure to do so can perhaps be explained by the fact that the

United States has had so little time to exercise its tutelage; only 90

years, after all. That its ministrations might have something to do with

what we find is a possibility not to be addressed. In the real world,

these desperate conditions can be traced in no small measure to the U.S.

invasion at the turn of the century with its vast slaughter and

destruction, the long colonial occupation, and the subsequent policies

including the postwar counterinsurgency campaign and support for the

Marcos dictatorship as long as it was viable. But the Philippines did

gain the (intermittent) gift of democracy. In the same business journal,

a columnist for the Manila Daily Globe, Conrado de Quiros, reflects on

this matter under the heading “The wisdom of democracy.” He compares the

disaster of the Philippines to the economic success story of Singapore

under Lee Kuan Yew, whose harsh tyranny is another of those famous

triumphs of democracy and capitalism. De Quiros quotes the Singapore

Minister of Trade and Industry, Lee’s son, who condemns the U.S. model

imposed on the Philippines for many flaws, the “worst crime” being that

it granted the Filipinos a free press; in his own words, “An

American-style free-wheeling press purveyed junk in the marketplace of

ideas, which led to confusion and bewilderment, not to enlightenment and

truth.” With a better appreciation of the merits of fascism, his

Singapore government is too wise to fall into this error.

The Americans did introduce a form of democracy, de Quiros continues.

However, it “was not designed to make Filipinos free but to make them

comfortable with their new chains.” It may have given the Filipinos more

newspapers, but “it has given them less money with which to buy them. It

has made the rich richer,” with “one of the world’s worst cases of

inequity in the distribution of wealth,” according to the World Bank.

Democracy “was an instrument of colonisation,” and was not intended to

have substantive content: “For most Filipinos, American-style democracy

meant little more than elections every few years. Beyond this, the

colonial authorities made sure that only the candidates who represented

colonial interests first and last won. This practice did not die with

colonialism. The ensuing political order, which persisted long after

independence, was one where a handful of families effectively and

ruthlessly ruled a society riven by inequality. It was democratic in

form, borrowing as many American practices as it could, but autocratic

in practice.

That these were indeed the policy goals is a rational conclusion in the

light of historical practice and the documentary record. We may then

describe the Philippines as another success story of democracy and

capitalism, and number its people too among the victors in the Cold War.

Under Philippine democracy, most of the population is not represented.

The politicians are lawyers or wealthy businessmen or landowners. As the

political structure bequeathed to the Philippines by the American

occupation was reconstituted after the overthrow of the U.S.-backed

dictator by “people power,” Gary Hawes writes in the scholarly journal

Pacific Affairs, “it is only those with money and muscle who can be

elected.” Candidates are mainly “former elected officials, relatives of

powerful political families and/or members of the economic elite,”

unrepresentative of the rural majority or even “the citizens who had

demonstrated to bring down Marcos and who had risked their lives to

protect their ballots for Corazon Aquino.” There was a party (PnB) based

on the popular organizations that arose against the dictatorship, with

broad support from the peasantry, the labor force, and large reformist

sections of the middle class, but it was to have no political role. In

the elections, PnB was outspent by the traditional conservative parties

by a ratio of up to 20 to 1. Its supporters were subjected to

intimidation and threats of loss of jobs, housing, and city licenses.

The military presence also served to inhibit PnB campaigning. Interviews

with poor farmers and workers revealed a preference for PnB candidates,

but a recognition that since the military and the rural elite opposed

them, “the next best choice was to take the money or the rewards and

vote for the candidates endorsed by the Aquino government.

The playing field having been properly levelled, our celebrated

“yearning for democracy” is satisfied.

Under the reconstituted elite democracy, Hawes continues, “the voices of

the rural dwellers” — almost two-thirds of the population — “have seldom

been heard,” and the same is true of the urban poor. The cure for

agitation in the countryside is militarization and the rise of

vigilantes, leading to a record of human rights violations “as bad as,

if not worse than, during the time of Marcos,” a 1988 human rights

mission reported, with torture, summary executions, and forced

evacuations. There is economic growth, but its fruits “have seldom

trickled down to the most needy.” Peasants continue to starve while

paying 70 percent of their crop to the landlord. Agrarian reform is

barely a joke. Support for the National Democratic Front (NDF) and its

guerrillas is mounting after years of rural organizing.

De Quiros suggests that there has been “substantive democracy in the

Philippines — despite colonialism and elite politics.” “This is so

because democracy took a life of its own, expressing itself in peasant

revolts and popular demand for reforms.” It is just this substantive

democracy that the United States and its allies are dedicated to repress

and contain. Hence the absence of any social revolution of the kind that

he and several other commentators in this most respectable business

journal see as sorely lacking in the Philippines — though if it can join

the club of “capitalist democracies” of the Singapore variety, the tune

will likely change.

Meanwhile, Survival International reports that tribal peoples are being

attacked by the private army of a logging company, which, in a six month

campaign of terror, has killed and tortured villagers, burned down

houses, destroyed rice stores, and driven thousands from their homes.

The same tribal people are among the many victims of bombing of villages

and other practices of the government counterinsurgency campaigns.

Appeals to the Aquino government have been ignored. An appeal to the

U.S. government, or Western circles generally, cannot be seriously

proposed. The same is true in Thailand, where the government announced a

plan to expel six million people from forests where it wants to

establish softwood plantations.

Miracles of capitalism are also to be found elsewhere in Asia. Charles

Gray, responsible for Asian affairs in the pro-business AFL-CIO foreign

affairs branch (AIFLD), observes in the Far Eastern Economic Review that

transnational corporations “generally insist the host government

suppress the right of workers to organise and join unions, even when

that right is guaranteed in the country’s own constitution and laws.”

The organization that coordinates trade in the Free World (GATT) does

not have a single rule that “covers the subsidies that transnational

corporations get though pressures on Third World governments to permit

19^(th) century-type exploitation of labour.” In Malaysia, “U.S. and

other foreign corporations forced the Labour Ministry in 1988 to

continue the government’s long-standing prohibition of unions in the

electronics industry by threatening to shift their jobs and investments

to another country.” In Bangladesh, contractors for the transnationals

“discriminate against women and girls by paying them starvation wages as

low as 9 U.S. cents an hour.” In China’s Guangdong province, when the

government found that “the factory of a leading toy manufacturer was

engaged in labour law violations — such as 14-hour workdays and 7-day

workweeks — it approached the managers to ask them to respect the law.

The managers refused, and said that if they were unable to operate the

way they wanted they would close their Chinese factories and move to

Thailand,” where there are no such unreasonable demands.

Low prices for imported toys have doubtless brought much Christmas cheer

in the industrial West.

The Fruits Of Victory: Africa

The scene in Africa is worse still. To mention only one small element of

a growing catastrophe, a study of the U.N. Economic Commission for

Africa estimates that “South Africa’s military aggression and

destabilization of its neighbors cost the region $10 billion in 1988 and

over $60 billion and 1.5 million lives in the first nine years of this

decade.” Such figures are considered too insignificant to merit notice

in the Newspaper of Record, which avoided the matter. Congress imposed

sanctions on South Africa in 1986 over Reagan’s veto, but their impact

has been limited. The American Committee on Africa reports that only 25

percent of U.S.-South African trade has been affected, and that iron,

steel, and (until late 1989) half-finished uranium continued to be

imported. After the sanctions were put in place, U.S. exports to South

Africa increased from $1.28 billion in 1987 to $1.71 billion in 1989,

according to the U.S. Commerce Department.

While the South African government and the minority White groups it

represents face mounting problems, they may see some rays of hope as

well. New diplomatic ties between South Africa and Hungary, now that it

has achieved independence, may prove to be “the wedge that breaks trade

sanctions and the international isolation of the South African

government,” the Christian Science Monitor reports in a lead story,

citing an economist at the Hungarian Academy of Sciences who foresees

expanding trade between South Africa and Eastern Europe.

The economic catastrophe of much of Africa is commonly attributed to

“socialism,” a term used freely to apply to anything we are not supposed

to like. But there is an exception, “an island of freewheeling

capitalism in a sea of one-party socialist states,” Africa correspondent

Howard Witt of the conservative Chicago Tribune writes. He is referring

to Liberia, which, like the Philippines, can attribute its happy state

to the fact that it was “America’s only toehold on the African

continent” — for a century and a half, in this case. Liberia took on

special significance during the Cold War years, Witt continues,

particularly after President Samuel Doe, a “brutish, nearly illiterate

army sergeant…seized power in 1980 after disemboweling the previous

president in his bed” (more recently suffering a similar fate himself),

and proceeded to elevate his fellow tribesmen — 4 percent of the

population — into a new ruling elite, and to persecute and savagely

oppress the rest of the population. The Reagan administration, much

impressed, determined to turn Liberia, like Jamaica, into a showcase of

capitalism and democracy. In the first six years of Doe’s regime, the

U.S. poured military and economic aid into “the backward country,” “even

as evidence mounted that Doe and his ministers were stealing much of the

money, and after he “brazenly stole” the 1985 election with Washington’s

approval, in a replay of the Noriega story a year earlier. A “respected

expatriate Liberian dissident and former government minister,” Ellen

Johnson-Sirleaf, says: “At the time, an American official told me

bluntly, ‘Our strategic interests are more important than democracy’.”

The results of the aid are evident, Witt writes: “The soldiers of

President Samuel Doe’s army wear the uniforms of American GIs as they go

about their business murdering Liberian civilians on the streets of the

capital, Monrovia,” named after President Monroe, and “the bodies of

many of the civilian victims are dumped in the morgue at the

American-built John F. Kennedy Hospital,” where “combat-hardened

doctors” say “they have never witnessed such brutality.” Monrovia is a

death trap, Witt writes. Those who are not struck down by starvation,

cholera, or typhoid try to escape the army or the rebel forces under

Charles Taylor, a former Doe aide — or later, those under the command of

a breakaway unit led by Prince Johnson.

The results of the U.S. aid became even clearer when reporters entered

Monrovia with the African peacekeeping force after Doe was tortured and

murdered by Johnson’s guerrillas. They found “a bloody legacy” of the

“10 years in power” of the U.S. favorite, UPI reporter Mark Huband

writes: piles of bleached bones and skulls, many smashed; “half-clothed,

decomposed heaps of flesh…littered with millions of maggots”; “contorted

bodies…huddled beneath church pews” and “piled up in a dark corner

beside the altar”; bodies “rotting into their mattresses”; “a large

meeting hall for women and children [where] clothes clung to the

skeletons of female and underaged victims.”

Not everyone, of course, has suffered in this “island of freewheeling

capitalism.” For a century and a half, the oligarchy of freed American

slaves and their descendants “oppressed and exploited the indigenous

population,” while “the U.S. looked the other way.” And lately, the

Reagan favorites did quite well for themselves until their turn came to

be dispatched. Others merely benefited, escaping any such unpleasant

fate: “U.S. corporations like Firestone and B.F. Goodrich made healthy

profits from the expansive Liberian operations,” Witt observes, proving

that freewheeling capitalism has its virtues. The U.S. built a huge

Voice of America transmitter in Liberia, perhaps to broadcast the happy

message of what can be achieved under capitalist democracy. We can chalk

up another victory for the Free World.

Current U.S. policy, Johnson-Sirleaf says, is “a lack of policy.” “It’s

kind of, ‘Oh, those Africans are at it again. Let them fight, and may

the best man win’.” To judge by the commentary on all of this, there is

nothing here to teach us anything about ourselves, our legendary

benevolence, or the marvels of freewheeling capitalism.

Behind the “lack of policy,” there is, however, the usual policy toward

the Third World, which we can trace back as usual to the early postwar

period when the global order was being shaped in the interests of the

rich and powerful in the West. Like other parts of the Third World,

Africa had its “function.” It was to be “exploited” for the

reconstruction of Europe, George Kennan explained in a major State

Department study on the international order. He added that the

opportunity to exploit Africa should provide a psychological lift for

the European powers, affording them “that tangible objective for which

everyone has been rather unsuccessfully groping….” History might have

suggested a different project: that Africa should “exploit” Europe to

enable it to reconstruct from centuries of devastation at the hands of

European conquerors, perhaps also improving its psychological state

through this process. Needless to say, nothing of the sort was remotely

thinkable, and the actual proposals have received little notice,

apparently being regarded as uncontroversial.

In discussion of African policy particularly, the element of racism

cannot be discounted. Dean Acheson warned the former Prime Minister of

the racist government of Rhodesia in 1971 to beware of the “American

public,” who “decide that the only correct decision of any issue must be

one which favors the colored point of view.” He urged that Rhodesia not

“get led down the garden path by any of our constitutional cliches —

equal protection of the laws, etc. — which have caused us so much

trouble….” This venerated figure of American liberalism was particularly

disturbed by the Supreme Court’s use of “vague constitutional

provisions” which “hastened racial equality and has invaded the

political field by the one-man-one-vote doctrine,” which made

“Negroes…impatient for still more rapid progress and led to the newly

popular techniques of demonstration and violence” (September 1968). The

“pall of racism…hovering over” African affairs under the Nixon

administration, “and over the most basic public issues foreign and

domestic,” has been discussed by State Department official Roger Morris,

including Nixon’s request to Kissinger to assure that his first

presidential message to Congress on foreign policy have “something in it

for the jigs” (eliciting “the usual respectful ‘Yes’” from this abject

flunkey); Kissinger’s disbelief that the Ibos, “more gifted and

accomplished” than other Nigerians, could also be “more Negroid”; and

Alexander Haig’s “quietly pretend[ing] to beat drums on the table as

African affairs were brought up at NSC staff meetings.

The “Unrelenting Nightmare”

The World Health Organization estimates that 11 million children die

every year in the world of the Cold War victors (“the developing world”)

because of the unwillingness of the rich to help them. The catastrophe

could be brought to a quick end, the WHO study concludes, because the

diseases from which the children suffer and die are easily treated. Four

million die from diarrhea; about two-thirds of them could be saved from

the lethal dehydration it causes by sugar and salt tablets that cost a

few pennies. Three million die each year from infectious diseases that

could be overcome by vaccination, at a cost of about $10 a head.

Reporting in the London Observer on this “virtually unnoticed” study,

Annabel Ferriman quotes WHO director-general Hiroshi Nakajima, who

observes that this “silent genocide” is “a preventable tragedy because

the developed world has the resources and technology to end common

diseases worldwide,” but lacks “the will to help the developing

countries.”

The basic story was summarized succinctly by President Yoweri Museveni

of Uganda, chairman of the Organization of African Unity. Speaking at

the UN conference of the world’s 41 least-developed countries, he called

the 1980s “an unrelenting nightmare” for the poorest countries. There

was a plea to the industrial powers to more than double their aid to a

munificent 2/10 of 1 percent of their GNP, but no agreement was reached,

the New York Times reports “principally because of opposition from the

United States.”

As capitalism and freedom won their Grand Victory, the World Bank

reported that the share of the world’s wealth controlled by poor and

medium-income countries declined from 23 percent to 18 percent (1980 to

1988). The Bank’s 1990 report adds that in 1989, resources transferred

from the “developing countries” to the industrialized world reached a

new record. Debt service payments are estimated to have exceeded new

flows of funds by $42.9 billion, an increase of $5 billion from 1988,

and new funds from the wealthy fell to the lowest level in the decade.

These are some of the joys of capitalism that are somehow missing in the

flood of self-praise and the encomia to the wonders of our system — of

which all of this is a noteworthy component — as we celebrate its

triumph. The media and journals are inundated with laments (with an

admixture of barely concealed glee) over the sad state of the Soviet

Union and its domains, where even a salary of $100 a month enjoyed by

the luckier workers is “scandalously high by the niggardly standards of

Communism.” One will have to search far, however, for a look at the

scene nearer to home, or for derisive commentary on “the niggardly

standards of capitalism” and the suffering endured by the huge mass of

humanity who have been cast aside by the dominant powers, long the

richest and most favored societies of the world, and not without a share

of responsibility for the circumstances of most of the others, all too

easy to ignore.

The missing view also unveils a possible future that may await much of

Eastern Europe, which has endured many horrors, but is still regarded

with envy in large parts of the Third World domains of the West that had

comparable levels of development in the past, and are no less well

endowed with resources and the material conditions for satisfying human

needs. “Why have the leaders, the media, the citizens of the Great

Western Democracies cared long and ardently for the people of Central

Europe, but cared nothing for the people of Central America?” the

experienced correspondent Martha Gellhorn asks: “Most of them are bone

poor, and most of them do not have white skin. Their lives and their

deaths have not touched the conscience of the world. I can testify that

it was far better and safer to be a peasant in communist Poland than it

is to be a peasant in capitalist El Salvador.”

Her question is, unfortunately, all too easy to answer. It has been

demonstrated beyond any lingering doubt that what sears the sensitive

soul is the crimes of the enemy, not our own, for reasons that are all

too obvious and much too uncomfortable to face. The comparison that

Gellhorn draws is scarcely to be found in Western commentary, let alone

the reasons for it.

As in Latin America, some sectors of Eastern European society should

come to share the economic and cultural standards of privileged classes

in the rich industrial world that they see across their borders, much of

the former Communist Party bureaucracy probably among them. Many others

might look to the second Brazil, and its counterparts elsewhere, for a

glimpse of a different future, which may come to pass if matters proceed

on their present course.

Part III

April, 1991

In the first two segments of this series, I raised the question that at

once comes to mind amidst the cheers for the glorious victory of the

West in the Cold War: how are the victors faring at the moment of their

triumph? A survey of the domains of the state capitalist industrial

societies provides a stark answer: we find an “unrelenting nightmare,”

in the accurate words of those who have enjoyed the kind tutelage of the

West. The catastrophe of capitalism could not be more vivid and

dramatic.

Notice that the question raised is precisely the right one. One will

learn next to nothing from a comparison of Eastern and Western Europe.

In contrast, it is quite reasonable to compare regions that were more or

less similar in relevant respects 80 years ago, but have since followed

a different course: subjugation to Leninist-Stalinist tyranny and its

aftermath (the USSR and Eastern Europe), or domination by the state

capitalist democracies (the conventional Third World).

Neither of these regions is homogeneous, and their prior histories

differ as well. But to a first approximation, it is reasonable to

describe large parts of both regions, before World War I, as roughly

comparable in social and economic development, and relation to the West.

At the time, Russia was developing, though it was far more backward than

Western Europe and not closing the gap, and by 1914, “becoming a

semi-colonial possession of European capital,” historian Teodor Shanin

observes. Making a similar point, economic historian Alexander

Gerschenkron notes that “in 1913, that is, thirty-five years after

Bulgaria’s liberation, nearly 80 percent of all the plows used in

Bulgarian farming were most primitive wooden implements,” and in the

1930s, “wooden plows were still more numerous than the iron ones.”

Similar observations hold generally, so it appears, though comparative

studies seem to be few.[53]

It is therefore of some interest to ask how Guatemalan peasants or

Brazilian slum dwellers would react, were they to find themselves

suddenly transported to Poland or Bulgaria or the Ukraine. We learn a

good deal about ourselves by pursuing the inquiry, and also by observing

how the obvious questions are stifled and eliminated in the chorus of

self-adulation.

Some Unheard Voices

The victims, of course, do not join the chorus, but as always, their

voices remain unheard. Thus, there is much pretense of concern over the

murder of the Jesuit intellectuals in El Salvador, but it does not reach

as far as attending to anything they say on any topic, including this

one, even though — or rather because — one might learn a good deal from

the exercise. On the question at hand, the journal Proceso of the Jesuit

University UCA in San Salvador, where the priests were assassinated, has

this to say:

The so-called Salvadoran ‘democratic process’ could learn a lot from the

capacity for self-criticism that the socialist nations are

demonstrating. If Lech Walesa had been doing his organizing work in El

Salvador, he would have already entered into the ranks of the

disappeared — at the hands of ‘heavily armed men dressed in civilian

clothes’; or have been blown to pieces in a dynamite attack on his union

headquarters. If Alexander Dubcek were a politician in our country, he

would have been assassinated like He’ctor Oquel! [the social democratic

leader assassinated in Guatemala, by Salvadoran death squads, according

to the Guatemalan government]. If Andrei Sakharov had worked here in

favor of human rights, he would have met the same fate as Herbert Anaya

[one of the many murdered leaders of the independent Salvadoran Human

Rights Commission CDHES]. If Ota-Sik or Vaclav Havel had been carrying

out their intellectual work in El Salvador, they would have woken up one

sinister morning, lying on the patio of a university campus with their

heads destroyed by the bullets of an elite army battalion.[54]

The comparison between the Soviet and U.S. satellites is so dramatic

that it takes real dedication not to perceive it, and outside of Western

intellectual circles, it is a commonplace. A writer in the Mexico’s

leading daily comments on the “striking contrast” between Soviet

behavior toward its satellites and “U.S. policy in the Western

Hemisphere, where intransigence, interventionism and the application of

typical police state instruments have traditionally marked Washington’s

actions”: “In Europe, the USSR and Gorbachev are associated with the

struggle for freedom of travel, political rights, and respect for public

opinion. In the Americas, the U.S. and Bush are associated with

indiscriminate bombings of civilians, the organization, training and

financing of death squads, and programs of mass murder” — not quite the

story in New York and Washington, where the United States is hailed as

an “inspiration for the triumph of democracy in our time” (New

Republic).[55]

A prominent Latin American theologian, Pablo Richard, also fails to see

matters as he is informed he does by the New Republic commissars.

Richard is professor of theology at the National University of Costa

Rica and a leading figure in the formation of the base Christian

communities, a prime target of the U.S.-backed savagery of the

Reagan-Bush years (enthusiastically supported by the New Republic and

others who now bask in their inspiring triumph) because they sought to

organize the poor, threatening to bring democracy and social reform, the

ultimate crime. Richard compares the current situation of the Third

World to that of the early Christians under the Roman Empire, which

Christians saw as “the Beast, a murderous idolatrous Beast,” who could

not be confronted with force, because it is far too powerful and

violent, but must be confronted ethically and spiritually: “This new way

of confronting imperialism in the decade of the ‘90s, which emphasizes

cultural, ethical, spiritual, and theological confrontation, challenges

in a special way the [Christian base communities] and the Church of the

Poor,” Richard writes.[56]

Others use different terms to express similar perceptions. The essential

points, again, are a commonplace outside of disciplined Western circles,

mired in ideological fanaticism and blind to the elementary (but

unacceptable) realities of the world.

Latin America and the Soviet Bloc

The social, economic, and ecological catastrophes resulting from

traditional Western imperialism and its more recent variants go a long

way towards explaining the reluctance of many in the Third World to join

the celebration of victory, and their tendency to regard the victims of

Soviet tyranny with a degree of envy. Furthermore, the state terror

faced on a daily basis by Latin Americans who dare to raise their heads

has been qualitatively different from the repression in Eastern Europe

in the post-Stalin period, terrible as that was in its own ways; and

they do not share our reluctance to see the powerful and systematic

influence of Washington and U.S. corporations in establishing and

maintaining the grim conditions of their lives.

Another comparison that might be addressed is suggested by the huge flow

of capital from the Third World to the United States and the West

generally. Latin America alone transferred some $150 billion to the

industrial West from 1982 to 1987 in addition to $100 billion of capital

flight, a capital transfer amounting to 25 times the total value of the

Alliance for Progress and 15 times the Marshall Plan, according to Latin

Americanist Robert Pastor, director of Latin American and Caribbean

Affairs for the National Security Council under the Carter

administration. The Bank for International Settlements in Switzerland

estimates that between 1978 and 1987, some $170 billion in flight

capital left Latin America, not including money hidden by falsified

trade transactions. The New York Times cites another estimate that

anonymous capital flows, including drug money and flight capital, total

$600 billion to $800 billion. This huge hemorrhage is part of a

complicated system whereby Western banks and Latin American elites

enrich themselves at the expense of the general population of Latin

America, saddled with the “debt crisis” that results from these

manipulations, and taxpayers in the Western countries who are ultimately

called upon to foot part of the bill.[57]

Again, the situation in the Soviet satellites is different. One

commentator on their affairs, Lawrence Weschler, observes that

Poles, like most Eastern Europeans, have long lived under the delusion

that the Soviets were simply bleeding them dry; in fact, the situation

has been considerably more complex than that. (The Soviet dominion was

in fact that unique historical perversity, an empire in which the center

bled itself for the sake of its colonies, or rather, for the sake of

tranquility in those colonies. Muscovites always lived poorer lives than

Varsovians.)

Throughout the region, journalists and others report, shops are better

stocked than in the Soviet Union and material conditions are often

better. It is widely agreed that “Eastern Europe has a higher standard

of living than the USSR,” and that while “Latin-Americans claim mainly

economic exploitation,” “Soviet exploitation of Eastern Europe is

principally political and security-oriented” (Jan Triska, summarizing

the conclusions of a Stanford University symposium on the USSR in

Eastern Europe and the U.S. in Latin America).[58] In the decade of the

1970s, according to U.S. government sources, the Soviet Union provided

an $80 billion subsidy to its Eastern European satellites (while their

indebtedness to the West increased from $9.3 billion in 1971 to $68.7

billion in 1979). A study done at the Institute of International Studies

of the University of California (Berkeley) estimated the subsidy at $106

billion from 1974 to 1984. Using different criteria, another academic

study by Paul Marer and Kazimierz Poznanski reaches the estimate of $40

billion for the same period, omitting factors that might add several

billion, they note. When Lithuania was faced with Soviet economic

retaliation after its declaration of independence, the Wall Street

Journal reported that the Soviet subsidy to that country alone might

approach $6 billion annually.[59]

Such comparisons cannot simply be taken at face value; complex issues

arise, and they have never been properly addressed. The only extensive

scholarly study attempting to compare the U.S. impact on Latin America

with that of the USSR on Eastern Europe, to my knowledge, is the

Stanford symposium just cited, but it does not reach very far. Among

many striking gaps, the contributors entirely disregard repression and

state terror in Latin America and the U.S. role in implementing it.

Writing in May 1986, the editor states that “some left-wing forces in

Latin America and all dissidents in Eastern Europe have little hope of

bringing about substantive changes, either peacefully or through

violence.” One contributor even takes seriously (though rejecting) the

absurd statement by Mexican writer (now Nobel Laureate) Octavio Paz in

1985 that it is “monstrous” even to raise the question of comparing U.S.

policies with those of the Soviet Union. Most take it as obvious, hence

needing no real evidence, that U.S. influence has been disinterested and

benign. In fact, this 470 page study contains very little information

altogether.[60]

Many questions would arise if such comparisons were to be undertaken in

a meaningful way. Contrary to standard conventions (generally followed

in the Stanford symposium), it is hardly plausible to regard U.S.

security concerns in Latin America as comparable to those of the Soviet

Union in Eastern Europe, or even to take seriously the conventional

doctrine that security concerns are “probably the greatest factor in

shaping U.S. policy toward Latin America” (Robert Wesson, presenting the

“historical overview and analysis” for the Stanford symposium). In

recent memory, the United States has not been repeatedly invaded and

virtually destroyed by powerful enemies marching through Central

America. In fact, its authentic security concerns are virtually nil, by

international and historical standards. There are what are called

“security concerns,” but as one participant in the symposium finally

concedes, after having taken them quite seriously, “U.S. national

security interests in the Caribbean [as elsewhere in the hemisphere, we

may add] have rested on powerful economic investments” (Jiri Valenta) —

which is to say that they are termed “security interests” only for

purposes of the delusional system. Furthermore, it makes little sense to

attribute to the United States greater tolerance for

“political-ideological deviations” on the grounds that it does not

insist on “the U.S. brand of democracy” and tolerates “authoritarian

dictatorships,” while the USSR insists on Leninist regimes (Valenta).

What the U.S. demands is an economic order geared to its interests; the

political form it takes is largely an irrelevance.[61]

Unless freed from the extreme ideological constraints of conventional

scholarship, comparative study is bound to be largely worthless.

The matter of capital flow is also complex. In the first place, the

regional hegemons are not remotely comparable in wealth and economic

level, and never have been, so that their role in economic transactions

will differ greatly. For another, investment has intricate effects. It

can lead to economic growth, benefit certain sectors of the population

while severely harming others, lay the basis for independent development

or undermine such prospects. The numbers in themselves tell only a small

part of the story, and have to be complemented by the kind of analysis

that has yet to be undertaken in comparing Eastern Europe and Latin

America.

It should be evident without further comment that the standard

comparison of Eastern to Western Europe, or the Soviet Union to the

United States, is virtually meaningless, designed for propaganda, not

enlightenment.

Latin America and the NICs

Other subordinate and dependent systems have yet a different character.

Discussing the rapid economic growth of South Korea and Taiwan after the

powerful stimulus given by Vietnam war spending, Bruce Cumings observes

that it resumes a process of development begun under Japanese

colonialism. Unlike the West, he notes, Japan brought industry to the

labor and raw materials rather than vice versa, leading to industrial

development under state-corporate guidance, now renewed. Japan’s

colonial policies were extremely brutal, but they laid a basis for

economic development. Needless to say, these economic successes, like

those of Singapore and Hong Kong, are no tribute either to democracy or

the wonders of the market; rather, to harsh labor conditions, efficient

quasi-fascist political systems, and, much as in Japan, high levels of

protectionism and planning by financial-industrial conglomerates in a

state-coordinated economy.[62]

Comparison of the Pacific colonies of the U.S. and Japan is not common

here, but right-wing Japanese are not reluctant to pursue it. Shintaro

Ishihara, a powerful figure in the ruling Liberal Democratic Party,

which holds a virtual monopoly of political power, observes that the

countries that were once under Japanese administration are “success

stories” from the economic point of view, while the Philippines are an

economic disaster and the “showcase of democracy” is largely empty form.

“Philippine landowners have accumulated incredible power and wealth,

siphoning everything from the ordinary people,” while “tradition is

dismantled” in favor of a shallow and superficial veneer of American

culture, “an atrocity — a barbaric act.”[63]

This spokesman for right-wing nationalism is plainly not a trustworthy

independent source. But there is more than a little truth to what he

says.

Comparison of the Latin American economies with those of East Asia (the

“Newly Industrializing Countries,” NICs) is another topic that has

rarely been undertaken seriously. Editorials, news reporting, and other

commentary commonly allege that the comparison reveals the superiority

of economic liberalism, but without providing the basis for that

conclusion. It is not easy to sustain, if only because of the radical

departures from liberal capitalism in the success stories of Asia. As

Alice Amsden in particular has emphasized, the highly touted economic

successes of East Asia can be traced in no small measure to the fact

that the state is not only powerful enough to discipline labor, as is

the norm, but even to discipline capital, and to compel sharp departures

from market principles for the sake of economic development. More

generally, it is virtually the conventional wisdom (and well supported)

that “late developing countries” typically rely on extensive state

intervention and coordination. In fact, it is hard to find any

exception, late or early. If the U.S. had kept to the principles it now

imposes on the “developing world,” we would probably still be pursuing

our comparative advantage in producing furs, and it is hardly likely

that we would ever have had, say, a steel industry. The same continues

to be true of advanced industrial societies, including the United

States, where the parts of the economy that remain competitive benefit

from huge taxpayer subsidies and a state-guaranteed market (high tech

industry via the Pentagon system being the most striking case). In

Germany, to mention only one feature, the IMF estimates that industrial

incentives are the equivalent of a 30 percent tariff. IMF conditions and

the like are fine for weaker economies that we intend to exploit. The

conditions greatly facilitate the robbery of the poor. Beyond that,

their merits are less than obvious.

The comparison between Latin America and East Asia was addressed at a

conference on global macroeconomics in Helsinki in 1986.[64] Several

contributors observe that the situation is complex, and conclude that

the disparities that developed in the 1980s (though not before) are

attributable to a variety of factors, among them, the harmful effects of

greater openness to international capital markets in large parts of

Latin America (as in the Philippines), which permitted vast capital

flight, but not in the East Asian economies with their more rigid

controls by government and central banks. In South Korea, for example,

export of capital can carry the death penalty. Again, the standard story

seems to be virtually the opposite of the truth.

Comparisons and their Pitfalls

The complexity of the issues that arise is shown in a revealing study of

Indian development, in comparison to China and others, by Harvard

economist Amartya Sen. He observes that “a comparative study of the

experiences of different countries in the world shows quite clearly that

countries tend to reap as they sow in the field of investment in health

and quality of life.” India followed very different policies from China

in this regard. Beginning at a comparable level in the late 1940s, India

has added about 15 years to added life expectancy, while China added 10

or 15 years beyond that increase, approaching the standards of Europe.

The reasons lie in social policy, primarily, the much greater focus on

improving nutrition and health conditions for the general population in

China, and providing widespread medical coverage. The same was true, Sen

argues, in Sri Lanka and probably Vietnam, and in earlier years in

Europe as well, where, for example, life expectancy rose rapidly in

England and Wales after large-scale public intervention in the

distribution of food and health care and expansion of public employment.

But this is not the whole story. In the late 1950s, life expectancy in

China plunged for several years to far below that of India because of a

huge famine, which took an estimated 30 million lives. Sen attributes

the famine to the nature of the Chinese regime, which did not react for

three years, and may not even have been aware of the scale of the famine

because the totalitarian conditions blocked information flow. Nothing

similar has happened in India with its pluralist democracy.

Nevertheless, Sen calculates, if China’s lower mortality rates prevailed

in India, there would have been close to 4 million fewer deaths a year

in the mid-1980s. “This indicates that every eight years or so more

people in addition die in India — in comparison with Chinese mortality

rates — than the total number that died in the gigantic Chinese famine,”

the worst in the world in this century.

In further confirmation of his thesis, Sen observes that life expectancy

in China has suffered a slow decline since 1979, when the new

market-oriented reforms were undertaken. Another relevant example is the

Indian state of Kerala, long under leftist rule and with “a long history

of extensive public support in education, health care, and food

distribution.” Here, improvement in life expectancy is comparable to

China, though it is one of India’s poorer states.[65]

Human Values

These are all serious and difficult questions, with far-reaching human

consequences. The development strategies imposed upon the Third World by

Western power, implemented by the international economic institutions or

the states and corporations themselves, have enormous effects on the

lives of the targeted populations. The record shows plainly enough that

the policies that are advocated or enforced by the Western powers, and

the confident rhetoric that accompanies them in official pronouncements

and other commentary, are guided by the self-interest of those who hold

the reins, not by any solid understanding of the economics of

development, or any serious concern for the human impact of these

decisions. Benefits that may accrue to others are largely incidental, as

are the catastrophes that commonly ensue.

As the collapsing Soviet system resumes traditional quasi-colonial

relations with the West, it is coming to be subjected to the same

prescriptions — in part by choice, given the intellectual vacuity that

is one of the consequences of decades of totalitarian rule. But

imposition of Third World norms is bound to meet resistance. One Polish

critic writes that if the popular Chicago School

words become flesh, this government would be the first in the history of

the world to adhere firmly to this doctrine. All developed countries,

including those (such as the Federal Republic of Germany) whose

governments pay obeisance to the liberal doctrine, apply a wide spectrum

of government interventions, such as in resource allocation, in

investments, in developing technology, income distribution, pricing,

export and import.[66]

If resistance follows the path often taken in the Third World, it is

likely to elicit the classic response.

On a visit to Europe a few days before he was assassinated by elite

government forces in San Salvador in November 1989, Father Ignacio

Ellacuria, rector of the University of Central America, addressed the

West on the underlying issues. You “have organized your lives around

inhuman values,” he said. These values

are inhuman because they cannot be universalized. The system rests on a

few using the majority of the resources, while the majority can’t even

cover their basic necessities. It is crucial to define a system of

values and a norm of living that takes into account every human

being.[67]

In our dependencies, such thoughts are subversive and can call forth the

death squads. At home, they are sometimes piously voiced, then relegated

to the ashcan in practice. Perhaps the last words of the murdered

priests deserve a better fate.

[1] Rostow, The Diffusion of Power (Macmillan, 1972). For sources not

cited here, see my Deterring Democracy (Verso, forthcoming), from which

much of this material is excerpted.

[2] Hockstader, WP, June 20, 1990.

[3] Mesoamerica (Costa Rica), July 1990. Detailed updates are circulated

regularly from the Washington office of the Commission, 1359 Monroe St.

NE, Washington DC 20017.

[4] Ronna Montgomery, Mesoamerica, June 1990. On the demolition of the

accords, and the role of Arias and U.S. doves, see my Culture of

Terrorism (South End, 1987), chapter 7; Necessary Illusions (South End,

1989), chapter 4 and Appendix IV, sec. 5; regular articles in Z

magazine, and Deterring Democracy.

[5] Central America Report (CAR), Guatemala, Nov. 10, 1989; July 27;

April 6; March 2, 1990.

[6] AP, Boston Globe, June 4, 1990, a 75-word item, which is more than

elsewhere.

[7] Editorial, Tiempo, July 2, 1990.

[8] Cesar Chelala, “Central America’s Health Plight,” Christian Science

Monitor, March 22; CAR, March 2, 1990.

[9] Latinamerica press (LP) (Peru), Nov. 16, 1989.

[10] Excelsior, Oct. 18, 1989 (Latin America News Update (LANU), Dec.

1989).

[11] For a review, see Joshua Karliner, “Central America’s Other War,”

World Policy Journal, Fall 1989.

[12] Anne Chemin, Le Monde, Sept. 21, 1988; Manchester Guardian Weekly,

Oct. 2. Tiempo, Aug. 10, 17, Sept. 19, 1988. Dr. Morales, Report on

Guatemala, July/August 1989.

[13] Ibid.

[14] La Prensa Dominical, Honduras, July 22, 1990.

[15] CAR, April 28, 1989. For discussion of these matters, see Necessary

Illusions.

[16] CAR, Dec. 1, 1989.

[17] Excelsior, March 24; LP, Feb. 15, 1990.

[18] Karliner, op. cit.; CAR, March 16, 1990. See Douglas R. Shane,

Hoofprints on the Forest: Cattle Ranching and the Destruction of Latin

America’s Tropical Forests (ISHI, 1986); Tom Barry and Deb Preusch, The

Soft War (Grove, 1988); and for background, William H. Durham, Scarcity

and Survival in Central America (Stanford, 1979).

[19] CAR, March 16; Mesoamerica, March 1990.

[20] Elections, CAR, Jan. 26, 1990. LP, Dec. 7; CAR, April 28, July 27;

Excelsior, April 30; COHA Washington Report on the Hemisphere, Sept. 27,

1989. For several examples of repression in the late 1980s of the kind

that aroused great fury when reported in Nicaragua, see Necessary

Illusions, 249, 268; for a much worse case, see Culture of Terrorism,

243.

[21] Mesoamerica, Sept. 1990.

[22] “Costa Rica: Arming the country of peace,” CAR, July 27, 1990.

[23] Ibid. COHA, “News and Analysis,” Aug. 18, 1988; Washington Report

on the Hemisphere, Sept. 27, 1989. Selser, La Jornada (Mexico), Jan. 23,

1990, citing Arias’s NYT Op-Ed on January 9.

[24] Editorial, MH, July 31, 1990.

[25] In the mainstream, that is. See, however, Alexander Cockburn,

Nation, Jan. 29, 1990, and subsequent articles of his.

[26] Rohter, “Panama and U.S. Strive to Settle on Death Toll,” NYT,

April 1, 1990.

[27] Excelsior-AFP, Jan. 27 (LANU), March 1990; Mesoamerica (Costa

Rica), May 1990; CAR, March 2, 1990.

[28] Brecha, CODEHUCA, “Report of Joint CODEHUCA-CONADEHUPA delegation,”

Jan.-Feb. 1990, San Jose.

[29] CODEHUCA, PEACENET, Feb. 5, 1990. Panamanian journalist Jose

Montano, LP (Lima), Jan. 18, 1990.

[30] See Physicians for Human Rights, “‘Operation Just Cause’: The

Medical Cost of Military Action in Panama,” Boston, March 15, 1990;

Americas Watch, Laws of War and the Conduct of the Panama Invasion,

1990.

[31] CAR, Sept. 7, 1990.

[32] CBS TV, 7PM EST, Sept. 30, 1990.

[33] Excelsior (Mexico City), April 14, 1990; Central America NewsPak,

Austin Texas. Pelaez, El Diario-La Prensa, May 7, 1990.

[34] Aviation Week & Space Technology, Jan. 1, 1990.

[35] John Morrocco, ibid.; Hackworth, interview with Bill Baskervill,

AP, Feb. 25, 1990. March 1990 report, see Deterring Democracy chapter 1.

[36] Michael Gordon, NYT, April 11, 1990.

[37] Oppenheimer, MH, June 20, 1990.

[38] CAR, Aug. 17, 1990.

[39] LP, Aug. 30, 1990.

[40] James, “US policy in Panama,” Race & Class, July-September 1990;

State Department letter to Jesse Helms, stating that the Department

“shares your view” on the matter in question, March 26, 1987, cited by

James.

[41] CAR, Aug. 31; Excelsior. Sept. 2, 1990.

[42] Wysham, Labor Action, April-May 1990; James, op. cit. On these and

other matters discussed here, see also Martha Gellhorn, “The Invasion of

Panama,” Granta, Spring 1990.

[43] Constable, BG, July 11, 1990.

[44] CSM, April 9, 1990.

[45] Excelsior, Feb. 28, 1990; LANU.

[46] Felicitas Pliego, Excelsior, April 29, 1990.

[47] Commission of Inquiry release, Feb. 17; COHA News and Analysis, May

1, 1990.

[48] Bernal, “Panama’s fight for free expression,” Chicago Tribune, May

29, 1990.

[49] Excelsior, Aug. 24; CAR, Sept. 7, 1990. See my articles in Z

magazine, November 1989, March 1990.

[50] CAR, April 6; Andres Oppenheimer, MH, Jan. 19, 1990.

[51] CAR, Aug. 30, 1990, citing a recent poll published in La Prensa.

[52] Massing, NYRB, May 17, 1990.

[53] Shanin, Russia as a ‘Developing Society’ (Yale, 1985), vol. 1,

186f., quoting D. Mirsky, Russia, A Social History (London 1952), 269;

Gerschenkron, Economic Backwardness in Historical Perspective (Harvard,

1962), 216.

[54] Quoted by Jon Reed, Guardian (New York), May 23, 1990.

[55] John Saxe-Fernandez, Excelsior, Nov. 21, 1989, in Latin America

News Update, Jan. 1990; TNR, March 19, 1990.

[56] Pasos, publication of the Ecumenical Department of Investigation in

San Jose, Costa Rica; LADOC (Peru), Nov./Dec. 1990.

[57] Pastor, Foreign Policy, Winter 1988–9; Jeff Gerth, NYT, Feb. 12,

1990.

[58] Weschler, “Poland,” Dissent, Spring 1990; Triska, “introduction,”

in Triska, ed., Dominant Powers and Subordinate States (Duke, 1986).

[59] Raymond Garthoff, Deetente and Confrontation, 499; M. Marrese and

J. Vanous, Soviet Subsidization of Trade with Eastern Europe

(California, 1983); Marer and Poznanski, “Costs of Domination, Benefits

of Subordination,” in Triska, op. cit.; Peter Gumbel, “Gorbachev Threat

Would Cut Both Ways,” WSJ, April 17, 1990.

[60] Triska, op. cit., 11; Paz cited by Jeffrey Hughes, 29.

[61] Wesson, Valenta, in Triska, op. cit., 63, 282.

[62] On these matters, see particularly Alice Amsden, Asia’s Next Giant

(Oxford, 1989), and for an overview, Amsden, “East Asia’s Challenge — to

Standard Economics,” American Prospect, Summer 1990. For some recent

reflections on Taiwan and Japan, Carl Goldstein, Bob Johnstone, Far

Eastern Economic Review, May 3, May 31, 1990. Cumings, “The origins and

development of the Northeast Asian political economy,” International

Organization 38.1, Winter 1984.

[63] Akio Morita and Shintaro Ishihara, The Japan That Can Say No

(Konbusha, Tokyo), translation distributed privately, taken from

Congressional Record, Nov. 14, 1989, E3783-98.

[64] Tariq Banuri, ed., No Panacea: the Limits of Economic

Liberalization (Oxford, forthcoming).

[65] Sen, “Indian Development: Lessons and Non-Lessons,” Daedalus, Vol.

118 of the Proceedings of the American Academy of Arts and Sciences,

1989. For further details on the Kerala exception, see Richard W. Franke

and Barbara H. Chasin, Kerala: Radical Reform As Development in an

Indian State (Institute for Food & Development Policy, Food First

Development Report No. 6, October 1989).

[66] Mieczyslaw Mieszczanowski, Polityka, Dec. 16, 1989, cited by

Abraham Brumberg, Foreign Affairs, “America and the World,” 1989–90.

[67] Envio (Managua), May 1990.