Throughout the book, Hudson is perhaps kinder than he should be. Although he does not use the term, what he is superbly describing and documenting in his book is economic warfare far more brutal and merciless than the limited-hangout offered by John Perkins' Confessions Of An Economic Hit Man on which Catherine Austin Fitts comments:
In the process of providing a colorful account of a 1970s whodunit (complete with low tech strategies devoid of the dazzling technology toolkit that is now an essential part of the economic hit man's weaponry of economic warfare), Perkins delivers to readers the "big lie": he reveals the secret that there is no greater conspiracy. This is simply globalization run amok, he would have us believe. Somehow, this particular conspiracy theory seems charmingly credible as part of a "confession." Perkins admits to what is known and then uses the credibility created by his "limited hangout" to further obscure the reality of who's who in the real governance of global investment and risk management. We are to presume that the investment networks in and around the Harvard Corporation, the City of London, the Vatican and investment managers and bankers for the proceeds of transnational organized crime are simply good-hearted fellows who let things get out of hand.
What the United States never addressed in developing countries, and still is not addressing, are the oppressive and corrupt institutions of those nations that manage inequity in land distribution, tax structures, and the allocation of natural resources. One consequence of refusing to do so was "to draw population from the countryside to the cities in search of employment. But the growth of industrial hiring was insufficient to absorb this rural exodus." (207)
In recent years, living as I do near the U.S./Mexican border, I have observed firsthand the myriad ways in which this destructive pattern plays out. Hundreds of thousands of dispossessed people from rural Mexico, particularly its southern regions, migrate to Mexican border towns where if they are fortunate, they find jobs in maquiladoras which are overwhelmingly owned and managed by U.S. corporations. Currently, many of these corporations are leaving Mexico and moving their operations to China or Southeast Asia where labor is even cheaper and tax loopholes even sweeter than they are in Mexico. As they do so, they leave behind environmental devastation and a large number of unemployed, dispossessed people who end up on the streets or make desperate attempts to enter the U.S. illegally. Saul Landau's excellent documentary on these issues, "Maquila, A Tale Of Two Mexicos", may be watched online.
When super-imperialism is fully understood, the "mystery" of illegal immigration will immediately be resolved. It is as if the international corporatocracy of world dominance functions like a giant broom sweeping the dispossessed into the United States where they are greeted by the domestic corporatocracy and further exploited as wage-slave laborers with all the accoutrements of "the good life, huaraches exchanged for vinyl sandals made in China and corn tortillas supplanted by "happy meals." One can only wonder what this government's policy will be when the dire consequences of Peak Oil and climate-chaos drought hit the fan. What then will be America's border policy? Today, gorging itself on cheap labor, the corporatocracy sucks up taxpayer money to build meaningless border fences that it knows will not deter the illegal workers it needs, but when Walmarts have weeds growing in their parking lots and thousands of meat packing plants have shut down because only the very wealthy can afford to remain carnivorous, we will see how many new immigrants will be allowed to inhabit the U.S. and consume the last drops of its water and oil.
As a result of the mass exodus to cities, food prices have soared in numerous developing countries so that people who have relocated in cities are working primarily to get the money to buy the food they eat. Thus, says Hudson, the World Bank has been "pauperizing the countries it had been designed, in theory, to assist." (208)
According to Hudson, "Freeing debtor, food-deficit countries from their yoke of obsolete political and social systems therefore must entail not only a re-education of U.S. strategists, but at some point direct political action by the developing countries to thwart their strategies. The ultimate action would be for these countries to withdraw from the World Bank, GATT, and the IMF altogether and to form a new set of development institutions run by themselves and in their own interests." (209)
Increasingly, Latin American countries, whom Hudson asserts have been intentionally managed and contained by the World Bank and IMF in order to prevent their autonomous departure from the economic control and management of the U.S., are doing exactly what he prescribes. Venezuela has taken the lead in rejecting World Bank and IMF carrot and stick economics, and more recently, Ecuador and Bolivia have joined Hugo Chavez in working to create Latin American self-sufficiency apart from the control of the U.S. Just this week, Ecuadorian President, Rafael Correa banned a World Bank official from the nation. Currently, Ecuador, Argentina, and Brazil are discussing the creation of a Southern Bank, operated by and for Latin Americans, as an alternative to the World Bank.
The Power of Debt
Today, the United States, through the issuing of treasury bills and various forms of borrowing from other nations, has risen to the status of Planetary Debtor In Chief, and in stark contrast to its position of planetary creditor sixty years ago, it now rules the world economically. Hudson comments:
In sum, the United States is able to rule not through its position as world creditor, but as world debtor. Rather than being the world banker, it makes all other countries the lenders to itself. Thus rather than its debtor position being an element of weakness, America's seeming weakness has become the foundation of the world's monetary and financial system. To change this system in a way adverse to the United States would bring down the system's creditors to America. (386)
But changing that system is indeed what America's myriad creditors intend to do, and many are strategically working toward economic self-sufficiency in order to walk away from the stranglehold that the World Bank and the IMF have held on them for six decades.
Neoliberalism: The Offspring Of Liberalism
Overwhelmingly, Latin American nations and their leaders are rejecting neoliberalism and speak freely of doing so. One of the most informative and succinct primers on neoliberalism can be found at Corpwatch where Elizabeth Martinez and Arnoldo Garcia explain that:
"Liberalism" can refer to political, economic, or even religious ideas. In the U.S. political liberalism has been a strategy to prevent social conflict. It is presented to poor and working people as progressive compared to conservative or Rightwing. Economic liberalism is different. Conservative politicians who say they hate "liberals" -- meaning the political type -- have no real problem with economic liberalism, including neoliberalism.
"Neo" means we are talking about a new kind of liberalism. So what was the old kind? The liberal school of economics became famous in Europe when Adam Smith, an English economist, published a book in 1776 called THE WEALTH OF NATIONS. He and others advocated the abolition of government intervention in economic matters. No restrictions on manufacturing, no barriers to commerce, no tariffs, he said; free trade was the best way for a nation's economy to develop. Such ideas were "liberal" in the sense of no controls. This application of individualism encouraged "free" enterprise," "free" competition -- which came to mean, free for the capitalists to make huge profits as they wished.
