The United Fruit Company: El Pulpo ("The Octopus")
The United Fruit
Company (UFC), formed in 1899, was a major U.S. corporation that
grew and exported bananas (and pineapples!) in
Third World plantations to sell in North America and Europe.The UFC was such a monopoly that it had huge economic and political influence on these Latin American countries. They were known as El Pulpo, or "The Octopus" because of their influence in all aspects of their lives. By 1930, the Company had absorbed more than 20 rival firms, becoming the largest employer in Central America.
Influence in Latin America
- The Great White Fleet - refers to the UFC's vast number of steamships used to transport the
bananas
- Railway transportation - their domination in railroad use was
also important in transporting these bananas; in 1901 the
Guatemalan government gave the UFC
exclusive rights to manage the country's postal
service
- Land ownership - the UFC claimed
because of natural threats like hurricanes, they would need extra
reserves of land in Latin America; this allowed them to maintain
market dominance. Under dictator Ubico (1931-1944), the
UFC controlled 42% of Guatemala's
land
- Corrupt government - this favourable treatment of an American
company to control land ownership was obviously a sign of corrupt
government officials. This led to the term "banana
republic", a small country that is dependent on limited
agriculture such as bananas and has a corrupt government.
- Taxes - the UFC managed to exempt
themselves from virtually all taxes from 99 years
- Employment - they not only were the biggest employers, but they
also built schools, housing, hospitals and research laboratories
for their workers.
- Research and Development - The company embarked on research
projects to conquer tropical diseases such as malaria and dengue
fever. Their labs also conquered specialized diseases of the banana
plant. In Costa Rica, whole areas of bananas were wiped out by
disease and their labs developed specialized insecticides and
fungicides to halt the problem.
Bananas
and the Red Scare
The newly elected leader of Guatemala, Jacobo
Arbenz Guzmán, had passed laws on land reform,
which threatened the company's monopoly use of land for growing
bananas.
Problem. Why?
United Fruit was one of the biggest holders of unused land in
Guatemala.
Result:
The UFC convinced the U.S. government,
including President Eisenhower and Secretary of State John Foster
Dulles, that Guatemala had secretly turned
pro-communist. The U.S. government and the
UFC even created a major public relations
campaign to convince the American people that Guatemala was a
Soviet satellite. The CIA (Central
Intelligence Agency) decides to assist in overthrowing
Arbenz's government in 1954. Arbenz was then ousted and
replaced by a military junta. This new government plunged Guatemala
into chaos and political turbulence.
Today
In 1970, United Fruit merged with AMK to
become United Brands - today it is called Chiquita Brands
International.
So next time you eat a banana, remember they're not only delicious
- they can also be very dangerous…
References:
http://www.unitedfruit.org/
Image:
Mike
Baird
Clairity
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