Review 28: Confessions of an Economic Hit Man


Confessions of an Economic Hit Man by John Perkins

This book probably would have enraged me if I hadn’t already more or less known what it was talking about. As it was, I was resigned and depressed.

The book is a short autobiography of an Economic Hit Man (EHM) who saw the error of his ways. The idea of the EHM, as he describes it, is to manipulate the governments of developing nations to accept huge loans from the IMF and the World Bank based on inflated projections of future income, under the theory that they would experience huge economic gains from the projects – things like electrical grid upgrades, roads, dams and the like. These nations would then become indebted to the United States and forced to give business to US corporations, thereby effectively putting that nation under US control. He calls it the Corporatocracy, and he was a part of it. He traveled around the world to manipulate cash-strapped world leaders into signing their nations over to the control of US corporate interests.

He describes himself as one of the earliest generations of EHM, the ones who knew exactly what they were doing. Perkins describes his entry and rise in the EHM world as a series of decisions inspired by coincidences, at least at first. His childhood was marked by clear class differences, growing up in a small New England town and going to school with the children of the super-rich. His family taught at the school, thus gaining him both entry into classes and a raging feeling of inferiority and anger.

After doing a stint in the Peace Corps, he was approached to work for the NSA. Following the NSA screening, he was tapped to work for MAIN, an engineering company who, in the 60s and 70s, was at the forefront of modernizing developing nations. At their expense, of course.

When Perkins was initiated into this world of money and power, he was explicitly aware of what he was doing: he would vastly overstate the economic potential of, say, a hydroelectric dam project, leading to the leaders of governments such as the Philippines, Columbia and Venezuela taking out massive loans based on expected future returns. When those returns didn’t come in – and they never did – they were forced to make concessions, which always, always benefited the interests of MAIN and other US corporations. By doing so, they became part of the American Economic Empire, without one politician ever laying a finger on it.

It’s considered the softest method of empire-building. Take a country that needs money to help its people, and arrange so that the government has to spend upwards of 50% of its GNP repaying loans. The people get nothing, a few rich leaders become richer, and US corporations spread further out into the world. All forwarding the cause of US economic interests. For Americans, it means cheaper gas, food and raw materials. For the corporations involved, it means higher and higher profits. For the people of the developing countries targeted, it means poverty and disenfranchisement.

The EHMs don’t always succeed, though – remember Panama? We had the canal, and made lots of money off it. Until the leader of Panama, in the 70’s, decided to take it back. Omar Torrijos was that rare breed of third world ruler who honestly wanted to help his people, and he knew that the best way to do that was to re-assert control over the Panama Canal. He knew what the EHMs were up to, and wouldn’t have any part of it. In his recollections of their meetings, Perkins sees him as the kind of leader every country should have, and it was his example that led him towards leaving this world. His example and, of course, his death.

When the EHMs fail, the jackals come in and people start dying in “mysterious” plane crashes. Torrijos was replaced by Manuel Noriega, who was in our pocket, but not quite far enough. He didn’t toe the line that Washington wanted, so we made him up to be the Hitler of South America, invaded Panama without cause (see, Iraq is not a new thing) and took him back to the US. The result? The canal is effectively back under US control, and any advances that Torrijos might have made are gone.

One of the reasons Perkins left the industry and wrote this book is because he’s worried about the future of the EHM. Not that it’s fading, but that it’s getting stronger. With the ever-increasing pace of globalization, governments are jockeying with corporations for power around the world, and the EHMs are coming with them. But the new breed is different. The people following in Perkins’ footsteps honestly believe that they are trying to help these beleagured countries They see themselves as part of a great march towards progress, never really noticing that the progress only really benefits them.

One thing I noticed about this book. While I don’t doubt Perkins’ honesty and intentions in writing this book, I do wonder how much of the “torn between two worlds” persona he adopts is honest. Throughout the book, he talks about his moments of indecision, of inner conflict as he tries to justify the things he’s doing. He talks about meeting dissidents in Iran, going to anti-American puppet shows in Bali, encountering supercilious Canal Zone residents in Panama, all of which serves to make him look like he’s much more thoughtful than the average corporate warrior.

Perhaps he’s representing himself sincerely as a person caught between his moral code and his pride. He did, after all, leave the business – and the vast amount of money and power that it offered him. But I kept thinking, how much of that conflicted feeling was real, and how much was remembered? It’s a small point, but one that kept nagging at me. It doesn’t add to or detract from his argument, however.

This is not a happy book, and it’s pretty likely to piss you off. It’s not about the US government, mind you – it’s about US corporations assisting the government in its imperial ambitions. It’s about the marriage of economics and governance and its dark, dark offspring….

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“Confessing a sin is the beginning of redemption.”
-John Perkins, Confessions of an Economic Hit Man
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Confessions of an Economic Hit Man on Wikipedia
John Perkins on Wikipedia
John Perkins’ website
Confessions of an Economic Hit Man on Amazon.com

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Filed under economics, ethics, history, John Perkins, memoir, nonfiction, politics

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