The Social ImplicationsThe Social Implications

of the Banana Tradeof the Banana Trade

Starting QuestionsStarting Questions►What is the social context in which the What is the social context in which the

production and exportation of bananas production and exportation of bananas takes place?takes place?

►What is required for the current large What is required for the current large scale market-based relations of labor scale market-based relations of labor and trade encompassing the “banana and trade encompassing the “banana industry”? industry”?

BackgroundBackground►In 2005, the top banana exporting In 2005, the top banana exporting

countries were Ecuador, Costa Rica, countries were Ecuador, Costa Rica, and Colombia. 14.8 million tons were and Colombia. 14.8 million tons were exported worldwide at a value of over exported worldwide at a value of over $2 billion.$2 billion.

►The “big three” transnational The “big three” transnational corporations—Chiquita (United Fruit), corporations—Chiquita (United Fruit), Dole (Standard Fruit), and Del Monte—Dole (Standard Fruit), and Del Monte—control 70% of the international banana control 70% of the international banana market.market.

►Combination of vertical supply integration and Combination of vertical supply integration and contract farming in order to get the lowest costs contract farming in order to get the lowest costs and highest profit margins.and highest profit margins.

Background continuedBackground continued►Large-scale mono-crop plantations Large-scale mono-crop plantations

are typically used, many former are typically used, many former haciendas. haciendas.

►By 1949, United Fruit owned 3.5 By 1949, United Fruit owned 3.5 million acres across million acres across Latin America, Latin America, a size a size comparable to comparable to Switzerland. Switzerland. How did this How did this come to be? come to be?

HistoryHistory►European colonialism: ethnic cleansing European colonialism: ethnic cleansing

and marginalization of indigenous and marginalization of indigenous peoples. peoples.

►Enclosure of commonly-held indigenous land by Enclosure of commonly-held indigenous land by colonialistscolonialists..

►Emergence of landless ‘peasants’ andEmergence of landless ‘peasants’ and campesinos. campesinos.

►Slave labor imported from Africa.Slave labor imported from Africa.

► ‘‘Independence’ creates nation-states Independence’ creates nation-states controlled by landed elite with European controlled by landed elite with European descent.descent.

►‘‘Banana republics’: concessions granted by these Banana republics’: concessions granted by these elites to American capitalists in order to elites to American capitalists in order to “develop” Latin America. “develop” Latin America.

History continuedHistory continued►What happened when favorable What happened when favorable

concessions were not granted?concessions were not granted?►Long tradition of coups, bribery, and Long tradition of coups, bribery, and

intimidation.intimidation.► Honduran government fails to award United Fruit Honduran government fails to award United Fruit

tax and duty free status, sponsors coup in 1903.tax and duty free status, sponsors coup in 1903.► After 1954 land and labor law reforms in After 1954 land and labor law reforms in

Guatemala, United Fruit lobbies US govt to Guatemala, United Fruit lobbies US govt to intervene. US-sponsored coup of elected intervene. US-sponsored coup of elected government sparks civil war that lasts until the government sparks civil war that lasts until the 1990s and leaves over 200,000 dead.1990s and leaves over 200,000 dead.

► United Fruit pays for supplies and lends CIA ships United Fruit pays for supplies and lends CIA ships for use in botched 1961 Bay of Pigs invasion of for use in botched 1961 Bay of Pigs invasion of Cuba.Cuba.

► Massive bribery campaign becomes public in Massive bribery campaign becomes public in 1975, United Fruit CEO commits suicide.1975, United Fruit CEO commits suicide.

1954 Guatemalan Coup1954 Guatemalan Coup

““Banana Wars”Banana Wars”

Contemporary IssuesContemporary Issues►Worker conditionsWorker conditions

►Struggles over union independence and Struggles over union independence and conditionality, compensation, healthcare—conditionality, compensation, healthcare—control over what one produces.control over what one produces.

►Environmental impactEnvironmental impact►Chemical usage, Chemical usage,

deforestation,deforestation,

erosion, sustainabilityerosion, sustainability

Worker ConditionsWorker Conditions► According to CIRAD, only 12% of final retail prices stay According to CIRAD, only 12% of final retail prices stay

in the producing countries with an even smaller in the producing countries with an even smaller proportion going to small farmers (5-7%) and to proportion going to small farmers (5-7%) and to plantation workers (1-3%).plantation workers (1-3%).

► Studies by the NUH in Costa Rica found that poisonings Studies by the NUH in Costa Rica found that poisonings are 3x higher in banana producing areas than the rest are 3x higher in banana producing areas than the rest of the country, which is already 8x higher than the of the country, which is already 8x higher than the world average.world average.

► Cited by HRW in 2002 for “serious human rights Cited by HRW in 2002 for “serious human rights abuses” in Ecuador, including the use of violent abuses” in Ecuador, including the use of violent intimidation, violation of environmental and labor laws, intimidation, violation of environmental and labor laws, and illegal child labor.and illegal child labor.

► Being sued by 2,400 workers in Costa Rica and 1,800 Being sued by 2,400 workers in Costa Rica and 1,800 workers in Nicaragua for using dibromochloropropane workers in Nicaragua for using dibromochloropropane (DBCP/Fumazone/Nemagon) nematocide, banned by (DBCP/Fumazone/Nemagon) nematocide, banned by the EPA. the EPA.

► Found guilty in a Nicaraguan court but refuses to pay ordered Found guilty in a Nicaraguan court but refuses to pay ordered settlement saying court has no jurisdiction.settlement saying court has no jurisdiction.

Pesticide PoisoningsPesticide Poisonings

Environmental ImpactEnvironmental Impact►Large scale monocropping requires Large scale monocropping requires

intensive pesticides.intensive pesticides.►UKFG estimates 11 million liters of pesticides UKFG estimates 11 million liters of pesticides

are applied each year to banana production are applied each year to banana production regions. Application by aerial spraying occurs regions. Application by aerial spraying occurs about forty times during each cultivation cycle.about forty times during each cultivation cycle.

►A 1995 IUCN report found that the banana A 1995 IUCN report found that the banana industry used pesticides an average of 19x industry used pesticides an average of 19x more (per ha) than other agriculture industries.more (per ha) than other agriculture industries.

►Pollution of water sources, surrounding Pollution of water sources, surrounding community heavily impactedcommunity heavily impacted

►Erosion from deforestation and Erosion from deforestation and irrigationirrigation

►Flooding and mud slidesFlooding and mud slides

Concluding ThoughtsConcluding Thoughts►Development or dependency?Development or dependency?

►‘‘Dependency theory’ proposes that the rich Dependency theory’ proposes that the rich states require poor states to extract resources. states require poor states to extract resources. They will engage in a wide range of practices—They will engage in a wide range of practices—from disregarding the environment to resorting from disregarding the environment to resorting to physical violence—in order to maintain the to physical violence—in order to maintain the status-quo.status-quo.

►Zero-sum logic means it is in the banana Zero-sum logic means it is in the banana industry’s interest to maintain poverty of industry’s interest to maintain poverty of workers to minimize costs.workers to minimize costs.

► ‘‘Neutral’ or ‘not political’? Neutral’ or ‘not political’? ►Everything one does is in a social context and Everything one does is in a social context and

has political implications—even buying has political implications—even buying something from the grocery store.something from the grocery store.

SourcesSources► Banana Link Banana Link www.bananalink.org.ukwww.bananalink.org.uk ► Co-op America Co-op America www.coopamerica.orgwww.coopamerica.org► Food and Agriculture Organization Food and Agriculture Organization www.fao.orgwww.fao.org ► Bitter Fruit: The Story of the American Coup in Bitter Fruit: The Story of the American Coup in

GuatemalaGuatemala by Stephen Schlesinger & Stephen by Stephen Schlesinger & Stephen KinzerKinzer

► Bananeras: Women Transforming the Banana Bananeras: Women Transforming the Banana Unions of Latin AmericaUnions of Latin America by Dana Frank by Dana Frank

► Green gold: Bananas & Dependency in the Green gold: Bananas & Dependency in the Eastern CaribbeanEastern Caribbean by Robert Thomson by Robert Thomson

► In the Shadows of State & Capital In the Shadows of State & Capital by Steve by Steve StrifflerStriffler

► Bananas: The "Green Gold" of the TNCsBananas: The "Green Gold" of the TNCs by Anne- by Anne-Claire ChambronClaire Chambron