The book is a critical outline of the newest form of imperialism that has been for the last decades subtilely replacing the decimating well-known military imperialistic era. It comprises a collection of confessional narratives by John Perkins, who unveils the reality from an inside the system perspective.
The book intermingles the author's personal memoirs with fragments of historical and political episodes. The book is sometimes clumpsy in terms of expressiveness and narrative value, surely not outstanding as a piece of literature. It has a more journalistic approach, and the book's merits are solely due to its informational content. So, if you consider reading it, close an eye of criticism over the amateurish writing style.
The story goes shortly like this. Being recruited as an Economics Specialist for an influential Construction Company, the author is entitled the role of planning and forecasting the economic outcomes of the company's prospective projects in a number of developing countries. Shortly, he will discover he is not going to do the realistic forecasts he would have expected and will understand the rationale behind the investments in these unfortunate countries.
The seemingly generous good Samaritans global money-lenders, the International Monetary Fund and World Bank, offer great loans to support infrastructural, technological and service investments in the willing-to-develop countries. Without the basic technological capacity of implementing the funded infrastructural reforms, these countries also need assistance from experienced American companies to do that. So, that's what happens.
Economic experts like Perkins come up with over-optimistic and non-realistic predictions of how the foreign investments will impact the economy of the country. The forecasts predict an economic boom and implicitly encourage the subdued countries to get the loans. The reality is that these loans are far over the country's economic capacity, and that on long term the states that took loans become seriously indebted, without soon perspectives of recovery. That guarantees the Americans will have access to whatever their interests in that particular country is: natural resources, military bases, political dominance.
The seemingly generous good Samaritans global money-lenders, the International Monetary Fund and World Bank, offer great loans to support infrastructural, technological and service investments in the willing-to-develop countries. Without the basic technological capacity of implementing the funded infrastructural reforms, these countries also need assistance from experienced American companies to do that. So, that's what happens.
Economic experts like Perkins come up with over-optimistic and non-realistic predictions of how the foreign investments will impact the economy of the country. The forecasts predict an economic boom and implicitly encourage the subdued countries to get the loans. The reality is that these loans are far over the country's economic capacity, and that on long term the states that took loans become seriously indebted, without soon perspectives of recovery. That guarantees the Americans will have access to whatever their interests in that particular country is: natural resources, military bases, political dominance.
This new form of enslaving nations from a financial viewpoint is what the author argues is the newest and a more subtle form of imperialism, most often hidden through what he calls "corporatocracy". The whole process is wrapped up under a well-desguised facade. Although serving the state's interest, the "economic hitmen" are employed by big corporations as specialists. Even if the outcomes of the plot will one day become evident, the negative publicity will be all on the greed of corporations, and the real players behind the dirty game will be safely secluded.
There are some very powerful stories of how some targeted country were seduced into this trick and how they suffered in the aftermath of the events. From far Asian to South American countries, here are some striking stories I would like to share.
Saudi Arabia
One of the depictions I enjoyed the most was the Saudi Arabia affair. It is somehow a reverse situation, in which the USA is caught into a very sensitive and painful situation. It reminded me how tightly interconnected and inter-relied are nations and how catastrophic outcomes can emerge when these ties are loosened.
In the 1970s, the oil-providing arabic nations were debating an embargo on the pro-israeli nations. The initial measure of 5% monthly increasing taxes, suddenly jumped to a total embargo, triggered by USA's decision of openly pumping substantial sums to Israel. The 6-months embargo threw the country in total chaos and crisis. The lesson was learnt. USA looked for solutions in avoiding a similar situations again.
In the 1970s, the oil-providing arabic nations were debating an embargo on the pro-israeli nations. The initial measure of 5% monthly increasing taxes, suddenly jumped to a total embargo, triggered by USA's decision of openly pumping substantial sums to Israel. The 6-months embargo threw the country in total chaos and crisis. The lesson was learnt. USA looked for solutions in avoiding a similar situations again.
The solution came along with the Arabi Saudi fascination with the Western World. The rich arabs started having contact with the Western World, and harbored the idea of shaping their own country in a western-like state. There is where their oil-dependant counterpart seized the opportunity. They sold the Saudi Arabs the western dream. They offered to reshape their country and equip it with all the technological mightiness and modern facilities they want, in exchange to protectionist policies and never-to-happen-again embargo.
And here starts the Cinderella-like evolution from a country that used goats as street-sanitation maintenance into a present-day symbol of luxurious opulence and richness. USA's money spent for oil were coming back into the country through massive services invested in Saudi Arabia. The threatening rising power of SA and its non-compliant changes with traditional islamic views, meant the country needed also military training to be prepared for possible angered arabic countries. The dependancy on American expertise was set.
And here starts the Cinderella-like evolution from a country that used goats as street-sanitation maintenance into a present-day symbol of luxurious opulence and richness. USA's money spent for oil were coming back into the country through massive services invested in Saudi Arabia. The threatening rising power of SA and its non-compliant changes with traditional islamic views, meant the country needed also military training to be prepared for possible angered arabic countries. The dependancy on American expertise was set.
That's how USA brilliantly secured their oil provisions, allying with the top world oil-provider and ensuring the a long-run dependency.
Indonesia
Indonesia has been for generations an irresistible attraction for the Western world. When Columbus set foot in Americas, he was actually trying to reach Indonesia, at the time known as the Spice Islands. Throughout the colonial era it was a main reason for clashes between the imperialistic powers, being considered a treasure for its spices, fabrics and opulent kingdoms. Finally, the Netherlands emerged triumphant, conquering Java.
Then Japanese invaded Indonesia during the Second World War, and the Dutch oppossed little resistance. After the Japanese retreat, a local leader rose and achieved independance. Ruling the country wasn't an easy task. The country consisted of over 15 000 islands, composed of countless tribes, different language dialects and internal conflicts between ethnics groups.
Sukarno, the new risen leader sought support from the Communist governments around the globe, making alliances in exchange for military equipment and training.
Around 1970s USA was determined to seduce Indonesia out of communism, as the Vietnam War was looking more and more uncertain. Consequently, Sukarno was overthrown and replaced with the head of the military force which leaded the coup. From now on, American specialists were taking over a plan of modernization for the country, with a great electrification plan for the country. It meant they wanted to grow their influence in the area, as they were loosing on other grounds. They were trying to copy the model of Saudi Arabia in Southern-Central Asia. Indonesia could become an example of prosperity aided by democratic powers, among communist countries. And it also possessed unknown amounts of oil. The pumped up economic predictions for a westernised society had begun, again.
Indonesia has been for generations an irresistible attraction for the Western world. When Columbus set foot in Americas, he was actually trying to reach Indonesia, at the time known as the Spice Islands. Throughout the colonial era it was a main reason for clashes between the imperialistic powers, being considered a treasure for its spices, fabrics and opulent kingdoms. Finally, the Netherlands emerged triumphant, conquering Java.
Then Japanese invaded Indonesia during the Second World War, and the Dutch oppossed little resistance. After the Japanese retreat, a local leader rose and achieved independance. Ruling the country wasn't an easy task. The country consisted of over 15 000 islands, composed of countless tribes, different language dialects and internal conflicts between ethnics groups.
Sukarno, the new risen leader sought support from the Communist governments around the globe, making alliances in exchange for military equipment and training.
Around 1970s USA was determined to seduce Indonesia out of communism, as the Vietnam War was looking more and more uncertain. Consequently, Sukarno was overthrown and replaced with the head of the military force which leaded the coup. From now on, American specialists were taking over a plan of modernization for the country, with a great electrification plan for the country. It meant they wanted to grow their influence in the area, as they were loosing on other grounds. They were trying to copy the model of Saudi Arabia in Southern-Central Asia. Indonesia could become an example of prosperity aided by democratic powers, among communist countries. And it also possessed unknown amounts of oil. The pumped up economic predictions for a westernised society had begun, again.
Panama - Panama Canal
Panama Canal was the target of numerous interests. The first attempt in constructing the canal was made by then imperialists French, who ruled the area. They failed miserably in the construction process, and ended up financially broke.
Theodore Roosevelt was observing the incident and got obsessed with the idea of taking up the construction of the canal. Panama was then under Colombia's rule. Roosevelt commenced negotiating with Columbia for ceasing Panama. Confronted with Columbia's refusal, the solution was military invasion and declaring Panama an "independent state". This actually is translated with Panama becoming a "buffer state" with its corrupted pro-american puppet leaders, who supported anti-communist movements through-out the Southern hemisphere. This way Panama Canal turned into an American affair.
Theodore Roosevelt was observing the incident and got obsessed with the idea of taking up the construction of the canal. Panama was then under Colombia's rule. Roosevelt commenced negotiating with Columbia for ceasing Panama. Confronted with Columbia's refusal, the solution was military invasion and declaring Panama an "independent state". This actually is translated with Panama becoming a "buffer state" with its corrupted pro-american puppet leaders, who supported anti-communist movements through-out the Southern hemisphere. This way Panama Canal turned into an American affair.
The narrative changes its beats with the coming to power of Omar Torrijos' figure. He was one of very few brave leaders who stood against the tempting interests sold by the imperialistic forces. He was one of the rare incorruptible leaders, whose goal was the rising of the poor class, becoming very popular among his people. He fought for his nation's rights, trying to stay away from both American or Communist influences and to keep away the pretended democratic "excuses" of democratic powers for invading the nation on anti-communist reasoning.
With the change of the government in USA and with Carter, an ultra-liberal, socialist leader, and with Torrijos demands, the Panama Canal is restituted to the panamanians.
The death of Torijos in his private airplane crash, a few months after the Ecuador's President Jaime Roldos had faced the same fate, are regarded with suspicion. Their timing coincide with radical political changes in USA, from a strongly liberal to a conservative orientation (Ronald Reagan).
Panama and Ecuador are just two examples of how South American countries have been played around and abused. It explains why, fed up by USA policies and exploitation of resources, with the democratic etiquette, most countries were attracted by the opposed communist system.
Panama and Ecuador are just two examples of how South American countries have been played around and abused. It explains why, fed up by USA policies and exploitation of resources, with the democratic etiquette, most countries were attracted by the opposed communist system.
Following Torrijos' death, Manuel Noriega replaced him. He was determined to continue his predecessor's agenda defending the Canal's new Treaty. Contrary to the justice-icon Torijjos, he was involved in some drug dealing and other illicit activities, that degraded its reputation.
Not complying to the US demands of extending their Schools of America projects (military schools) in the country, this triggered one of the most legally abusive US intervations. Without any other reasoning, except from calling Noriega an evil, drug-traffiking, enemy of the people leader, US attacked Panama. It was reported the largest air-borne assault on a city after the WWII and an unprovoked attack on civilian population. Panama had posed no threat to US, any other country or its own people. It was a clear open violation of the international law.
No third parties, Press or humanitarian organizations were allowed to enter Panama for 3 days after the attack. The real casualties remained unknown.
Iran
In 1950s, Iran started revolting against the British company that was exploiting its oil natural resources. Their popular democratically elected prime-minister Mohammad Mossadegh has nationalized all Iranian petrolum assets. Britain was outraged and sought help to their WW2 allies USA.
Fearing an intervation from the Soviet Union on the side of Iran, they came up with another strategy, less evident. Secret agent went over in Iran and instigated street riots and demonstrations, through payoffs and threats, creating the image of an unpopular and unloved prime-minister. That's how Mohammad Mossadegh has been put under home arrest for the rest of his life, and how Reza Shah replaced him, becoming the unchallenged dictator.
It seems shocking how a country that is the embodiment of democracy has purposely kicked off a democratically elected leader, for supporting a dictatorial ruler. Imagine how high the stake.
Venezuela
Venezuela's story embodies both the patterns of the strategies of the Arabia Saudi money-lending affair and that of Iran's political coup. This time, the outcome is different.
During the Hugo Chavez rule who took more drastic measures to secure the national's oil resources and who stood against the will of the superpower of the North, street demonstrations aroused. Despite bribing military heads, the instigators din not manage to turn the army against Chavez. After less then a day, the apparently overthrown Chavez, has officially repositioned himself. He knew how to play smart and keep his people devoted.
This comes in a context in which Venezuela was by the time the fourth world's oil-exporter. It had a stormy history after suddenly discovering its oil reserves. It was dragged into the same money-lending affair for infrastuctural modernization and experienced deep crisis when oil priced radically dropped and could not pay their debts back. This seriously impacted the population, and reshaped the country's demographics, taking its toll especially from middle class representatives, from whom many fell into the ranks of the poor.
The failure in disposing of Chavez triggered the US backing for solely one reason. It could not afford to be active on so many front lines. They were already having on-going military operations in Afghanistan and were on the edge of striking in Irak. It was Venezuela's stroke of luck.
Iraq
Iraq was just another perfect ground for expanding the US political dominance and economical growth. It could have been the second success story after Saudi Arabia, and was possessing potential greater amounts of oil. Starting with the 1980, US was having its hitmen operating in Iraq and trying to buy Saddam Husein to their side. If Saddam had cooperated, he would have benefited from US support in his political endeavors and secured his influence in that part of the world. It didn't matter he was a pathological tyrant, as long as he obeyed.
Contrary to common public opinion, Iraq was not all about oil. It had also strong geopolitical and water resources. It is situated at the convergence of many influential Middle East countries, so strategically positioned that whoever gets hold of it, has the key to controlling the Middle East.
It also has the two main rivers Tigris and Euphrates running through its land. During the 1980s the importance of water was becoming more obvious, as major energy companies turned their attention into the privatization of water systems in South America, Africa and Middle East.
When in 1990 Saddam had invaded the rich-oil Kuwait, the Bush administration had the perfect alibi for stepping into Iraq. Not long after staging and illegal and unilateral invasion in Panama, they were marketing a war reasoned by Saddam's violation of international law.
In 1950s, Iran started revolting against the British company that was exploiting its oil natural resources. Their popular democratically elected prime-minister Mohammad Mossadegh has nationalized all Iranian petrolum assets. Britain was outraged and sought help to their WW2 allies USA.
Fearing an intervation from the Soviet Union on the side of Iran, they came up with another strategy, less evident. Secret agent went over in Iran and instigated street riots and demonstrations, through payoffs and threats, creating the image of an unpopular and unloved prime-minister. That's how Mohammad Mossadegh has been put under home arrest for the rest of his life, and how Reza Shah replaced him, becoming the unchallenged dictator.
It seems shocking how a country that is the embodiment of democracy has purposely kicked off a democratically elected leader, for supporting a dictatorial ruler. Imagine how high the stake.
Venezuela
Venezuela's story embodies both the patterns of the strategies of the Arabia Saudi money-lending affair and that of Iran's political coup. This time, the outcome is different.
During the Hugo Chavez rule who took more drastic measures to secure the national's oil resources and who stood against the will of the superpower of the North, street demonstrations aroused. Despite bribing military heads, the instigators din not manage to turn the army against Chavez. After less then a day, the apparently overthrown Chavez, has officially repositioned himself. He knew how to play smart and keep his people devoted.
This comes in a context in which Venezuela was by the time the fourth world's oil-exporter. It had a stormy history after suddenly discovering its oil reserves. It was dragged into the same money-lending affair for infrastuctural modernization and experienced deep crisis when oil priced radically dropped and could not pay their debts back. This seriously impacted the population, and reshaped the country's demographics, taking its toll especially from middle class representatives, from whom many fell into the ranks of the poor.
The failure in disposing of Chavez triggered the US backing for solely one reason. It could not afford to be active on so many front lines. They were already having on-going military operations in Afghanistan and were on the edge of striking in Irak. It was Venezuela's stroke of luck.
Iraq
Iraq was just another perfect ground for expanding the US political dominance and economical growth. It could have been the second success story after Saudi Arabia, and was possessing potential greater amounts of oil. Starting with the 1980, US was having its hitmen operating in Iraq and trying to buy Saddam Husein to their side. If Saddam had cooperated, he would have benefited from US support in his political endeavors and secured his influence in that part of the world. It didn't matter he was a pathological tyrant, as long as he obeyed.
Contrary to common public opinion, Iraq was not all about oil. It had also strong geopolitical and water resources. It is situated at the convergence of many influential Middle East countries, so strategically positioned that whoever gets hold of it, has the key to controlling the Middle East.
It also has the two main rivers Tigris and Euphrates running through its land. During the 1980s the importance of water was becoming more obvious, as major energy companies turned their attention into the privatization of water systems in South America, Africa and Middle East.
When in 1990 Saddam had invaded the rich-oil Kuwait, the Bush administration had the perfect alibi for stepping into Iraq. Not long after staging and illegal and unilateral invasion in Panama, they were marketing a war reasoned by Saddam's violation of international law.






