12_New Imperialism Global History of Capitalism & Governance 30372 Prof. Grace Ballor 12_New Imperialism 12_New Imperialism IEP Event 30372: Global History, Bocconi University 12_New Imperialism Overview I. Review Session 10: IBM in Nazi Germany II. Contextualize Latin America & International Relations in the Cold War World III. Discuss United Fruit Case IV. Prepare for Session 13: End of Module II 30372: Global History, Bocconi University 12_New Imperialism Review Session 10 • Was “World Peace through World Trade” an ethical approach? 30372: Global History, Bocconi University 12_New Imperialism Evolution of the Global Economy: Module II: Paradox of International Cooperation toward Global Governance and Economic Nationalism 30372: Global History, Bocconi University 12_New Imperialism Contextualize Case: 19th c. Latin America Decolonized and independent • By the mid-19th century, the countries of Central and South America were largely independent after decolonization and wars of independence Developing economies and weak states • Newly independent countries faced the challenges of how to pursue economic growth, which paved the way for foreign investment • And they were susceptible to frequent regime changes and coups; such instability made these countries susceptible to foreign intervention 30372: Global History, Bocconi University 12_New Imperialism Contextualize Case: 19th c. Latin America Guatemala • Mayan civilization • Spanish colonization in the 16th c. → racially stratified society • Unstable political system: independence from Spain in 1821, then joined the Mexican empire with Nicaragua, Honduras, and El Salvador, then federation collapsed, leading to a series of liberal governments (soliciting foreign investment) and military coups (creating further instability) • Coffee production with German investors (75% of market by 1901) 30372: Global History, Bocconi University 12_New Imperialism United Fruit Chiquita Banana (formerly United Fruit) 30372: Global History, Bocconi University Carmen Miranda “tutti fruiti hat” 1943 Became the 1st Chiquita Banana Girl 12_New Imperialism United Fruit 30372: Global History, Bocconi University 12_New Imperialism United Fruit Jacobo Arbenz Zemmuray 30372: Global History, Bocconi University 12_New Imperialism United Fruit: Case Contributions Business • Vertical integration: plantations, transport, distribution • Foreign direct investment: United Fruit, Standard Fruit • Creation of a market for bananas in the US: marketing (Geo)politics • Latin America and Guatemala • US interventionism and foreign policy • Philanthropy of business leaders 30372: Global History, Bocconi University 12_New Imperialism Question 1: Does United Fruit make Guatemala a better or worse place? 30372: Global History, Bocconi University 12_New Imperialism Question 2: What were Arbenz’ aims as president? What options did he have? And was the US’ intervention legitimate? 30372: Global History, Bocconi University 12_New Imperialism Question 3: What should we make of the philanthropy of business leaders like Zemmuray? 30372: Global History, Bocconi University 12_New Imperialism New Imperialism • Case helps us understand why the legitimacy of global capitalism was questioned by so many in Central America and other developing countries • UF brought infrastructure and employment, but it also reinforced the institutions that inhibited growth and entrepreneurship – more problems than solutions? • Case also shows the way US foreign policy was driven by anticommunist agenda: chose to back murderous dictators and exploitative firms – caused developing world to react strongly against global capitalism, continuing today • The banana industry continues to pay low wages and degrade environments – Chiquita, Dole, and Del Monte still account for much of world trade; in 2007 Chiquita was found guilty by US Supreme Court for bribing Columbian terror groups, fined $20M 30372: Global History, Bocconi University 12_New Imperialism Evaluation Feedback 30372: Global History, Bocconi University 12_New Imperialism Session 13: New World Order: UN • To conclude our Module on Deglobalization and the Emergence of Global Governance, we will analyze the Charter of the United Nations. • Note: Friday session! • Reading: UN Charter 30372: Global History, Bocconi University
