The Plantation Economy and its Impact on Central America's Development - Term Paper Example

THE PLANTATION ECONOMY AND ITS IMPACT IN CENTRAL AMERICA'S DEVELOPMENT Introduction Central America is one of the regions in the world that have agricultural potentiality and has been producing agricultural products to the world. Central America is a region of the western hemisphere which is made up of instruments that forms the bridge connecting North America and South America. Geographers have defined this region as a part of the North America although there are not similar in economic, social and political factors. Central America is made up of Guatemala, Belize, El Salvador, Honduras, Nicaragua, Costa Rica, and Panama. The region has a population of about 37 million people. (West and Augelli, 1999) The history of Central America is linked with the growth and development of the plantation economy. When the colonialists reached the land, they found enabling climate and they set of establishing plantations to create what came to be known as the sugar kingdom in the history of America. The economy of the region is large reliant on Agriculture. There is production of cash crop like coffee, bananas, sugarcane and cotton which is produced through large holding and most of the products is exported to the Northern American and to Europe. However there is also the growth of subsistence crops like corns, beans, bananas, mains, rice and pulley. In the drier regions there is the production of beef cattle. The large holdings most employee modern farming while the subsistence farmers still use the simple farming techniques that have been in use for along time now. (Wrigley, 1999) Thesis statement Plantation farming has been practiced in the region since the settlement of colonialists in the region. However the region still lags behind in economic development despite producing agricultural products to the world. Has the plantation economy helped the region develop economically or has it helped the investors in the large holdings' Outline of the paper This paper represents a well arranged and researched inquisitive essay on the impact of large holding farming in the region. The first part will look at the historical development of the large scale farming over the time and how it has developed in the region. Then it will look at the impact this has been making on the economy of the region and at the end it will look at the present economic situation of these countries so as to make a conclusion of there the plantation economy has been of use to the region of if it has not helped the region. In the conclusion it will look the problem that the region has been facing and what can be done on the situation. Development of plantation economy in the region The historical development of plantation economy in the region dates back when the Spanish colonization was started. With the arrival of Spanish and other colonialist in the region, there was increased development of agrarian economy which was favored by the Amazon climate that extends to the region. When the Spanish came, they immediately stated planting bananas in large plantation around 1860s and by 1870 there was increased growth of banana in the region. Most of the plantations in the region were started along the railway lines which were by then expanding northward to America. When an American entrepreneur was commissioned by the Costa Rica government to build a transition railroad, he started growing bananas along the railway road and immediately began exporting them to United States. Keith was highly successful in the venture and he embarked on the same plantation economic along all other major railway roads that he built. He was able to acquire large tracks of undeveloped land and in the process expanded the development of banana plantation to Guatemala and Hondura. In 1869 he merged with Boston Fruit Company and formed the United Fruit Company which rapidly expanded to Central America and by 1955 the company had over 400,000 hectares under production of bananas. (Ferguson, 1998; Mahar and Schneider, 1994) As the colonialists settled there was displacement of the native from their lands in order to pave way for the development of plantations which could produce cash crops. As a result most of the natives ended up being employed as laborers in these farms. Their labor was found valueless with the arrival of slaves from West Africa who provided free labor. As the settlement expanded further inland, there was more displacement of the inhabitants and destruction of the natural ecology in order to pave way for the development of large sugar, sugar and coffee plantations. The same history surrounds the development of other crops in the region. Coffee was planted in the region in 1736 with the arrival of Spanish immigration. However it did not become one the principle crop in the region as sugar was more valued that the new crop. Upon the arrival of the Spanish, the kin of Spain commissioned an enquiry onto the agricultural potentiality of the area and immediately a government mill was put up in order to take care of the sugar plantation which were already been produced in the region especial in Pueto rico. Therefore the historical development of plantation economy in the region can be traced to the arrival of the colonialist. When they came they were able to produce these cope in large scale and at the same time process them to sell them as finished products. Throughout there was a problem of labor due to low population in the region, there was increased migration for other people to the region which led to increased labor and therefore low labor. There was loose importation of slave laborers from West Africa who were used as laborer sin the sugar plantation. It is recorded that the sugar plantation and coffee plantation in the region were responsible for the growth of slave trade in America and is associated the increased black population in the region. As colonies expanded a and pushed more of the native Americans further inside their land, their settlement were replaced with large plantation of cash crops which were used to develop the economy of the region. (Baxter, 1998) In the early years of the last millennium, there was increased government reform in the region which were aimed at reforming the agriculture sector in order to give the native more voice in the agrarian economy which had become the pillar of the economy in most these countries. However re the reforms those were carried out did not end the monopoly of the agriculture sector by the large farms and they still hold much of the production lands. Fore example the government policy in Puerto Rico failed to convert much of the land which was under sugar and coffee plantation into food crop lands. It has been shown that most of the lands in Puerto Rico were under coffee or sugar plantations and the failure by the government to intervene and the consequent owners failed to regulate their economies. The era of one crop which was sugar plantation in the region lasted until 1930s when Federal Department of Agriculture ended the sugar subsidy which had been supporting the sector. Consequently the United Fruits established sugar plantations in Central America and Puerto Rico could not compete effectively. Therefore most of the sugar plantations in the country collapsed and the sector has never come to life again. It changed its economy completely to take an industrialized economy and the agrarian contribution to the economy has never been achieved again as it was at that time. Currently as we stand the country import more than 90% of the foods consumed in the country. It has been shown that if most of the land in the region had earlier been set aside to produce food crops, they would be used by majority of the population rather that the sugar and coffee plantations which only helped a handful of large holding owners on the lands. What have been the impacts of the plantations economy in the region' Since the plantations were established in the region, it has had many negative and positive impacts to the life of the people. It has some economic, social and political impacts in the region. The plantation economic has affected not only the economic situation of the people and of the region but it has also affected the social life of the native population and other immigrants who came to region as laborers. On an economic note, these plantations have been crucial in the development of the economic of the region. Going with the international trade theories, they have helped the region to capitalize on the agriculture resource that they have which has helped to build a strong economy. For examples the region is known as the leading exporter of some products like bananas to the world. It is also a known producer of sugar and coffee in the world market. (Vandermeer and Perfecto, 1995) The plantations have also led to development of regions which has helped to influence the growth of the region. For example the Costa Rican City of Quests was developed as a major Pacific in the 1930s mainly to handle banana export to other region. There has been also development of other cities and towns which have become the main collection points of these products. This has been a large contribution to the growth the economy in the region. It has also been shown that most of the countries in the region have been able to develop industrialized economies based on the agrarian resource that they have been able to acquire from the plantations. Fore example Costa Rica has been developing and industrialized economy based on its earlier development of the agrarian based economy which collapsed in the 1930s. The agrarian economy has been a good incentive to the development of industrialized economy. (Mora, 1998) They have also been source of employment in the region. It has been shown that banana plantation employ about 5 to 10 percent of the population of Houduar and Costa Rica. This has been one of the most important sectors that have been contribution to employment opportunity in the region. (Ruhl, 1994) The multinational companies owning the plantation have also been responsible for the development of the region. They have constructed function amenities in the rural and undeveloped areas. They have been putting up hospital, schools, roads, railways and other communication system which have been supporting the plantations. (Chomsky, 1995) But on the other hand there have been little positive development as mentioned about when compared with the economic, political, social and environment disorders that have come with the development of the plantations. There are far more negative impacts of the population in the region than the positive impact we have motioned above. Through the sector has been providing labor in the region, it has been one of the most oppressive labor in the word. Through accounting for the largest part of their economies on therefore, this plantation employ less than 40 percent of the whole population. For example according to Newsworthy and Barry (2003) the banana plantation in Honduras and Costa Rica employ 5-10 percent of the population only despite being major sectors of the economy. Each worker produces approximately $20,000 per year but one is compensated only $2,000 per years. The workers in these plantations works for about 10 to 12 hours a day six days week which is a physically demanding labor. It has also been shown that only 30 percent of the workers are permanent laborers while 70 percent of the rest are ninety day contract workers. Most the workers move from one plantation to the next in search of work. Most of the migrants in the region don't acquire the vacation, gratitude's or social security which is enjoyed by most of the permanent employees. (Kepner, 1997; MacKerron, 2003) There has been a great social disorganization since the development of the multinationals. When the settlers came, there was displacement of the native residents and their land was taken in order to develop the plantations. As a resulted the natives were reduced to slaves and laborers in the plantations and there was a great disruption of the social life of the people. Through there has been development of towns and other amenities in these regions, they have not benefited the natives and they have contributed to the rise of class systems in the region. There is a different life for the common people and for the owners of the large farms. The plantation are faced with problem of alcoholism violence, disease, sexual abuse, drug addiction, prostitution, juvenile deliquescence, crimes, and others which are attributed to the changing social life of the people. There has also been marked degradation of the environment in the regions which has seen destruction for forest and natural diversity to pave way for the plantations. (Astorga, 1998; Barry, 1997) There has also been economic decline in the region which ahs been attributed to the collapse of the plantations. For example the Puerto Rican city so propose has since then been abandoned since 1956 when there was decline in the banana economies. The region has suffered a great economic depression as the production price of the bananas has tippled that of the world price and the export market have been protected by agreements. It is not know the future of the prodding once the agreement expires. The multinational operating these farms have been having alto of political influence in the region and have penetrated the elections in most of these countries. For example the 1954 election of Guatemala president Jacob Arbenz who was later overthrown by a CIA led coup and was replaced by a president who replaced all the holding of united land holdings. (Bourgois, 1999; Vargas, 1998) Conclusion The development of plantations economies in the region has been one for the most important steps that has developed the region to grow it economy. At the same time it has resulted to several social and economic disorders in the region. As the paper brings out, it has been a mixed fortune for the region in matter of economic power and loss of sovereignty through the control by multinational companies that have been reaping billions from the plantations. There are still some issues that need to be researched further on how the plantations in the region can be change to be beneficial not only to the owners of the large scale holdings but also to the laborers in the plantations. References Astorga, Y. (1998.) The Environmental Impact of the Banana Industry; Retrieved from Barry, T. (1997): Roots of Rebellion. Boston: South End Press. Bourgois, P. (1999). Ethnicity at Work; Baltimore: The Johns Hopkins University Press. Chomsky, A. (1995). Afro-Jamaican Traditions and Labor organizing on United Fruit Company Plantations in Costa Rica, 1910; Journal of social History. 28 (4) 837-856. Ferguson, J. (1998). A Case of Bananas; Geographical; 520(1) 49 - 52. Kepner, C. D. (1997). Social Aspects of the Banana Industry; New York: AMS Press, Inc. MacKerron, C. (2003). Business in the Rainforest; Washington: Investor Responsibility Research Center. Mahar, D. & Schneider, R. (1994): Incentives for Tropical Deforestation: some examples form Latin America. In The Causes of Tropical Deforestation, Vancouver: UBC Press. Mora, B.A. (1998): Bananas for the World and the Consequences for Costa Rica. Costa Rica: Foro Emaus. Norsworthy, K. & Barry, T. (2003): Inside Honduras. Albuquerque: The Inter-Hemispheric Education Resource Center. Vandermeer, J. & Perfecto, I. (1995): Breakfast of Biodiversity. Oakland: The Institute for Food and Development Policy. Vargas, G. (1998). The Socio-Environmental Problems of Banana Plantations in Costa Rica; Costa Rica: Foro Emaus. West, R. & Augelli, J. (1999): Middle America: Its Lands and Peoples. New Jersey: Prentice Hall. Wrigley, G. (1999). Tropical Agriculture; New York and Washington: Frederick A. Praeger. Ruhl, M. (1994): The Economy. In Honduras: a Country Study, 103-145. Washington, D.C.: United States Government. Baxter, T. (1998): The Hidden Life of Bananas. Sierra; (5) 62 - 63. http://www.laslett.com.banana.conf.paper2.htm on 7th may 2008 Read More