|
Ecuador was poster child for how developing nations were to behave: Take on loans based on inflated estimates of economic prosperity. Loan payments are unrealistic, country defaults. US and World Bank dictate terms of repayment, including exclusive use of American companies to do work in Ecuador, allowing corporations access to national treasures (oil, land, cheap labor usually), allowing a few Ecuadorians to get wealthy, dictating UN votes, etc. If the country does not toe the line, threats are made. If the country still does not cooperate (look out Chavez) then more serious consequences happen. Allende, Roldos, and Torrijos were examples of leaders who tried to defy this expected cooperation. Hussein too.
The bottom line is the country becomes a slave to US and World Bank, the masses are not helped, a priveledged few become wealthy. This pattern has been going on for decades and is a little known, important, disgusting part of our history. Many countries in Latin America, Africa, and Indonesia have been victimized this way...not much hope in many areas.
Perkins' Confessions of an Economic Hit Man details this very well and is highly recommended reading for those of us who are naive and did not know.
|