Editing United Fruit Company (section)

==History in Latin America==
The United Fruit Company (UFCO) owned huge tracts of land in the Caribbean lowlands. It also dominated regional transportation networks through its [[International Railways of Central America]] and its Great White Fleet of steamships. In addition, UFCO branched out in 1913 by creating the [[Tropical Radio and Telegraph Company]]. UFCO's policies of acquiring tax breaks and other benefits from host governments led to it building [[enclave economy|enclave economies]] in the regions, in which a company's investment is largely self-contained for its employees and overseas investors and the benefits of the export earnings are not shared with the host country.<ref>{{cite book |last=Frasinetti |first=Antonio M |year=1978 |title=Enclave y sociedad en Honduras|publisher=Editorial Universitaria|oclc=14879029 |location=Tegulcigalpa |language=es }}</ref>

One of the company's primary tactics for maintaining market dominance was to control the distribution of arable land. UFCO claimed that hurricanes, blight and other natural threats required them to hold extra land or reserve land. In practice, what this meant was that UFCO was able to prevent the government from distributing land to peasants who wanted a share of the banana trade. The fact that the UFCO relied so heavily on manipulating [[land use]] rights to maintain their [[market dominance]] had a number of long-term consequences for the region. For the company to maintain its unequal land holdings it often required government concessions. And this in turn meant that the company had to be politically involved in the region even though it was an American company. In fact, the heavy-handed involvement of the company in often-corrupt governments created the term "[[banana republic]]", which represents a servile dictatorship.<ref name="GREED">{{cite news |title=Big-business greed killing the banana |author=The Independent |newspaper=[[The New Zealand Herald]] |date=24 May 2008 |page=A19|author-link=The Independent }}</ref> The term "Banana Republic" was coined by American writer [[O. Henry]].<ref>{{cite book |last=MacLean |first=Malcolm D |year=1968 |chapter=O. Henry in Honduras |title=American Literary Realism, 1870–1910 |volume=1/3 |pages=36–46}}</ref>

===Environmental effects===
The United Fruit Company's entire process of creating a plantation to farm the banana and the effects of these practices created noticeable environmental degradation when it was a thriving company. Infrastructure built by the company was constructed by clearing out forests, filling in low, swampy areas, and installing sewage, drainage, and water systems. Ecosystems that existed on these lands were destroyed, devastating biodiversity.<ref>{{cite book|last1=Tucker|first1=Richard P.|title=Insatiable Appetite: The United States and the Ecological Degradation of the Tropical World|url=https://archive.org/details/insatiableappeti00tuck|url-access=limited|date=2000|publisher=University of California|pages=[https://archive.org/details/insatiableappeti00tuck/page/n56 43]–78|isbn=9780520220874}}</ref> With a loss in biodiversity, other natural processes within nature necessary for plant and animal survival are shut down.<ref>{{cite journal|jstor=4407210|title='Agricultural Exports, Poverty and Ecological Crisis': Case Study of Central American Countries |journal=Economic and Political Weekly |volume=33 |issue=39 |pages=A128–A136 |last1=Siddiqui |first1=Kalim |year=1998 }}</ref>

Techniques used for farming were at fault for [[Biodiversity loss|loss of biodiversity]] and harm to the land as well. To create farmland, the United Fruit Company would either clear forests (as mentioned) or would drain marshlands to reduce avian habitats and to create "good" soil for banana plant growth.<ref>{{cite book|last1=Putnam|first1=Lara|title=The Company They Kept: Migrants and the Politics of Gender in Caribbean Costa, 1870–1960|url=https://archive.org/details/companytheykeptm00putn|url-access=limited|date=2002|pages=[https://archive.org/details/companytheykeptm00putn/page/n47 35]–111}}</ref> The most common practice in farming was called the [http://ebooks.cambridge.org/chapter.jsf?bid=CBO9781139050814&cid=CBO9781139050814A008 "shifting plantation agriculture"]. This is done by using produced soil fertility and hydrological resources in the most intense manner, then relocating when yields fell, and pathogens followed banana plants.

In addition to the loss of biodiversity, many new species were introduced into the environment including the largemouth bass. The largemouth bass, a popular fish in the United States, has been exported and introduced to waters worldwide. Lake Yojoa in Honduras was home to many largemouth bass not native to the region. A group of North American United Fruit Company employees, wanting to indulge in their love for fishing, introduced 1,800 largemouth bass from Florida.<ref>John Soluri (2011). "Empire's Footprint: The Ecological Dimensions of a Consumers’ Republic, OAH Magazine of History" Volume 25, Issue 4, Pages 15-20 [https://academic.oup.com/maghis/article/25/4/15/1037442]</ref> From 1954–55 to about 1970, the bass population greatly impacted the native fish population, and continued to grow. The 55-gallon drums imported by the UFCO has led this American export to grow and become genetically superior in the warmer and longer growing seasons.<ref>Burke, Monte, "[https://www.forbes.com/2005/03/28/cz_mb_0328sport.html?sh=ca93cf23e386 Long Reach of the Largmouth]" (2005).</ref>

===Guatemala===
{{See also|1954 Guatemalan coup d'état#United Fruit Company lobbying}}[[File:Reforma agraria 1952.jpg|thumb|180px|When President [[Jacobo Árbenz Guzmán]] attempted a [[Decree 900|redistribution of land]], he was overthrown in the [[1954 Guatemalan coup d'état]]]]
Although UFCO sometimes promoted the development of the nations where it operated, its long-term effects on their economy and infrastructure were often devastating. In Central America, the Company built extensive railroads and ports, provided employment and transportation, and created numerous schools for the people who lived and worked on Company land. On the other hand, it allowed vast tracts of land under its ownership to remain uncultivated and, in Guatemala and elsewhere, it discouraged the government from building highways, which would have lessened the profitable transportation monopoly of the railroads under its control. UFCO also destroyed at least one of those railroads upon leaving its area of operation.<ref>{{cite book |last=Chapman |first=Peter |year=2007 |title=Bananas: How the United Fruit Company Shaped the World |publisher=[[Canongate Books]] |isbn=978-1-84195-881-1 |url=https://archive.org/details/bananashowunited00chap }}</ref>

In 1954, the Guatemalan government of Colonel [[1954 Guatemalan coup d'état|Jacobo Árbenz]], elected in 1950, was toppled by forces led by Colonel [[Carlos Castillo Armas]]{{sfn|Schoultz|1998|p=343}} who invaded from [[Honduras]]. Commissioned by the Eisenhower administration, this military operation was armed, trained and organized by the U.S. [[Central Intelligence Agency]]{{sfn|Schoultz|1998|p=340}} (see ''[[1954 Guatemalan coup d'état|Operation PBSuccess]]''). The directors of United Fruit Company (UFCO) had lobbied to convince the [[Harry S. Truman|Truman]] and Eisenhower administrations that Colonel Árbenz intended to align Guatemala with the [[Eastern Bloc]]. Besides the disputed issue of Árbenz's allegiance to communism, UFCO was being threatened by the Árbenz government's agrarian reform legislation and new Labor Code.{{sfn|Schoultz|1998|p=337}} UFCO was the largest landowner and employer in Guatemala, and the Árbenz government's land reform program included the expropriation of 40% of UFCO land.{{sfn|Schoultz|1998|p=337}} U.S. officials had little proof to back their claims of a growing communist threat in Guatemala;{{sfn|Schoultz|1998|p=342}} however, the relationship between the Eisenhower administration and UFCO demonstrated the influence of corporate interest on U.S. foreign policy.{{sfn|Schoultz|1998|p=340}} [[United States Secretary of State]] [[John Foster Dulles]], an avowed opponent of communism, was also a member of the law firm, [[Sullivan and Cromwell]], which had represented United Fruit.{{sfn|Schoultz|1998|p=338}} His brother [[Allen Dulles]], director of the CIA, was also a board member of United Fruit. United Fruit Company is the only company known to have a [[CIA cryptonym]].{{citation needed|date=May 2025|reason=see [[Talk:United Fruit Company#The Cryptonym Conundrum]], watch out for circular references!}}{{dubious inline|The Cryptonym Conundrum|date=May 2025}} The brother of the Assistant Secretary of State for InterAmerican Affairs, [[John Moors Cabot]], had once been president of United Fruit. Ed Whitman, who was United Fruit's principal lobbyist, was married to President Eisenhower's personal secretary, [[Ann C. Whitman]].{{sfn|Schoultz|1998|p=338}} Many individuals who directly influenced U.S. policy towards Guatemala in the 1950s also had direct ties to UFCO.{{sfn|Schoultz|1998|p=337}}

After the overthrow of Árbenz, a military dictatorship was established under Carlos Castillo Armas. Soon after coming to power, the new government launched a concerted campaign against trade unionists, in which some of the most severe violence was directed at workers on the plantations of the United Fruit Company.<ref name="Forster 2001 202"/>

Despite UFCO's government connections and conflicts of interest, the overthrow of Árbenz failed to benefit the company. Its stock market value declined along with its profit margin. The Eisenhower administration proceeded with [[antitrust]] action against the company, which forced it to divest in 1958. In 1972, the company sold off the last of its Guatemalan holdings after over a decade of decline.

Even as the Árbenz government was being overthrown, in 1954 a [[General strike of 1954 (Honduras)|general strike]] against the company organized by workers in Honduras rapidly paralyzed that country, and, due to the United States' concern about the events in Guatemala, was settled more favorably for the workers in order for the United States to gain leverage for the Guatemala operation.

===Cuba===
By the early 20th century, the UFCO began its operations in Cuba by controlling large tracts of land and influencing local governance and labor markets. In the early 1920s, the UFCO established its central hub for operations in the Cuban city of Banes where the banana plantations were run by the ''[[antillano]]'' population.<ref>{{Cite journal |last=Sullivan |first=Frances Peace |date=2014 |title="Forging Ahead" in Banes, Cuba: Garveyism in a United Fruit Company Town |url=http://www.jstor.org/stable/24713753 |journal=NWIG: New West Indian Guide / Nieuwe West-Indische Gids |volume=88 |issue=3/4 |pages=231–261 |issn=1382-2373}}</ref> The antillano population refers to migrants from the British Caribbean, more specifically from [[Jamaica]] and [[Haiti]]. With the introduction of the UFCO in Banes, the city was transformed socially and economically, due to an increase in employment, better infrastructure, and more law enforcement.

Company holdings in [[Cuba]], which included sugar mills in the [[Oriente Province|Oriente]] region of the island, were [[Confiscation|expropriated]] by the 1959 [[Cuban revolution|revolutionary government]] led by [[Fidel Castro]]. By April 1960 Castro was accusing the company of aiding [[Cuban exile]]s and supporters of former leader [[Fulgencio Batista]] in initiating a seaborne invasion of Cuba directed from the United States.<ref>[[Oliver Stone]], The Untold History of the USA, episode 6 after 6 minutes and 38 seconds: "[...]Ambassador Adlai Stevenson, in an embarrassing prequel to Colin Powell's performance at the UN over Iraq in 2003, showed a photograph of a plane supposedly flown by a Cuban defector, but quickly exposed as belonging to the CIA. The assault has begun on the dictatorship of Fidel Castro. Almost 1600 Cuban exiles arrived at the Bay of Pigs in 7 ships, 2 of them owned by '''United Fruit'''.[...]"</ref> Castro warned the U.S. that "Cuba is not another Guatemala" in one of many combative diplomatic exchanges before the U.S. organized the failed [[Bay of Pigs Invasion]] of 1961.

===Infrastructure In Costa Rica===

In the 20th century, many parts of Latin America were not positively operated and invested in compared to the region of Costa Rica. The United Fruit Company, according to researchers, made positive impacts in the region that continued past the bankruptcy and ceasing of production in 1984.<ref name="insights.som.yale.edu">Diana Van Patten (2022). "Multinationals Can Have a Positive Local Impact—If they Face Enough Competition for Labor" Yale Insights.[https://insights.som.yale.edu/insights/multinationals-can-have-positive-local-impact-if-they-face-enough-competition-for-labor]</ref>

Since 1880 with the first initial U.S. investment in 4% of the country's territory, the UFCO grew in Costa Rica to develop around 7% of their labor force. With a growing labor force and plantations expanding, camps for farmers and families emerged. With the emergence of the workforce came the construction of commissaries, schools, electric plants, sewage systems, hospitals, and recreation facilities all funded by the UFCo.<ref name="insights.som.yale.edu"/>

According to Yale Insights, the impact of the infrastructure still persists today in astonishing numbers. In 1973, households living within the boundaries of UFCo were 26% less likely to be poor compared to outside households. A most recent research statistic in 2011, states that only 63% of the poverty gap had closed by 2011. The impact of the UFCo investment in capital among families had statistically paid off as outside work options had around a 1% increase in probability of being poor in 2011 since 1973 compared to the 0.73% lower probability on a UFCo location.<ref name="insights.som.yale.edu"/>

=== Colombia ===
In the early to mid-20th century, the UFC dominated the banana industry throughout the northern regions. The introduction of this multinational corporation meant that small farmers needed to be displaced to make room for large tracts of land. This forced displacement of small farmers created resentment throughout Colombia which led to numerous resistance movements to help drive this corporation. With banana plantations expanding in the 1870s, peasants left [[hacienda]]s to stake new land claims on public land that would be used for cultivation, however, land sharks and the Colombian government would encroach on their land with fabricated property titles to claim ownership of their land.<ref>{{Cite journal |last=LeGRAND |first=Catherine C. |date=2003 |title=The Colombian Crisis in Historical Perspective |url=http://www.jstor.org/stable/41800188 |journal=Canadian Journal of Latin American and Caribbean Studies / Revue canadienne des études latino-américaines et caraïbes |volume=28 |issue=55/56 |pages=165–209 |issn=0826-3663}}</ref> The UFC acquired their land for their plantations in regions such as [[Urabá Antioquia|Urabá]] and [[Magdalena Department|Magdalena]] through deals with local elites and the government, which often displaced these small farmers living and working on the land. These farmers had little recourse in these land disputes, because of the close relationship that the UFC had with the national government, the legal systems often favored corporate interests.

With the UFC interfering with local issues throughout Colombia, the Liberal Party often fought back against the Conservative party for supporting the exploitation of multinational corporations towards the Colombian people. Not only did the Majority of liberal Colombians have strong criticisms against tax and railway concessions from the UFC, but it also led to Liberal newspapers expressing their opposition to their operations throughout the region.<ref>{{Cite book |last=Bucheli |first=Marcelo |url=http://dx.doi.org/10.18574/nyu/9781479838226.001.0001 |title=Bananas and Business |date=2020-06-05 |publisher=New York University Press |isbn=978-1-4798-3822-6}}</ref> Many Colombians were upset that UFC received numerous tax breaks from the Colombian government which they saw as unfair since the UFC didn't contribute to the national treasury while they profited extensively from Colombian resources. The Colombian Liberal Party favored policies that promoted domestic industry and reduced foreign influence in Colombia, which is why they wanted to oust the UFC's monopolistic practices. The opposition from the Liberal Party put pressure on the UFC and its government backed allies to create a more equitable society, however their disregard for the Colombian people often led to labor strikes such as the [[Banana Massacre]].

Not only was the UFC known for monopolizing land and resources along with sidelining Colombian farmers, but their workers often experienced exploitative and inhumane labor conditions. From the 1960s to the 70s, UFC plantation workers were subjected to grueling working schedules and a lack of basic amenities such as water and housing while living on company property.<ref>{{Cite journal |last=Chomsky |first=Aviva |date=2007 |title=Globalization, Labor, and Violence in Colombia's Banana Zone |url=http://www.jstor.org/stable/27673094 |journal=International Labor and Working-Class History |issue=72 |pages=90–115 |issn=0147-5479}}</ref> The majority of workers worked up to twenty hours each day which most labor systems frowned upon since these long hours often led to physical exhaustion and long-term health issues. The UFC provided camps for workers to live in, however, the company exercised significant control over their workers' social conditions and access to resources. The lack of basic housing in these camps left these workers to live in cardboard boxes which was dehumanizing and showed how these workers were viewed as tools instead of human beings. Lack of basic infrastructure such as clean drinking water and electricity meant that workers lived in unsanitary conditions, which exacerbated health issues relating to diseases. The UFC perpetuated cycles of poverty and violence towards their workers, which led to violent repression ultimately leading to its demise in Colombia in the early 1970s.