A Game As Old As Empire

By Amy Goodman, Democracy Now!. Posted February 16, 2005.

John Perkins, author of Confessions of an Economic Hit Man, worked for years as chief economist at an international consulting firm in Boston called Chas. T. Main. His job was to persuade countries that are strategically important to the U.S. - such as Indonesia, Panama, Ecuador, Iran and Saudi Arabia – to accept enormous loans for infrastructure development and then to make sure the lucrative projects were contracted out to U.S. corporations. Saddled with huge debts they couldn't possibly repay, these countries came under the control of the U.S. government, the World Bank and other U.S.-dominated aid agencies that acted like loan sharks, dictating repayment terms and bullying foreign governments into submission.

AMY GOODMAN: Now, already people are going to be wondering, what is he talking about, "economic hit man"?

JOHN PERKINS: Well, really, over the past 30 to 40 years, we economic hit men have created the largest global empire in the history of the world. And we do this, typically – well, there are many ways to do it, but a typical one is that we identify a third-world country that has resources that we covet. And often these days that's oil, or might be the canal in the case of Panama.

In any case, we go to that third-world country and we arrange a huge loan from the international lending community; usually the World Bank leads that process. So, let's say we give this third-world country a loan of $1 billion. One of the conditions of that loan is that the majority of it, roughly 90 percent, comes back to the United States to one of our big corporations, the Bechtels, the Halliburtons. And those corporations build in this third-world country large power plants, highways, ports, or industrial parks – big infrastructure projects that basically serve the very rich. The poor people in those countries and the middle class suffer; they don't benefit from these loans, they don't benefit from the projects. In fact, often their social services have to be severely curtailed in the process of paying off the debt.

Now what also happens is that this third-world country then is saddled with a huge debt that it can't possibly repay. For example, today, Ecuador. Ecuador's foreign debt, as a result of the economic hit men, is equal to roughly 50 percent of its national budget. It cannot possibly repay this debt, as is the case with so many third-world countries.

So, now we go back to those countries and say, look, you borrowed all this money from us, and you owe us this money, you can't repay your debts, so give our oil companies your oil at very cheap costs. And in the case of many of these countries, Ecuador is a good example here, that means destroying their rain forests and destroying their indigenous cultures. That's what we're doing today around the world, and we've been doing it since the end of World War II. It has been building up over time until today where it's really reached mammoth proportions where we control most of the resources of the world.

Robert MacNamara, you write about him. Talk about his roles from Ford to secretary of defense to World Bank.

I think that what we have here is a world empire that's controlled by a very few men I call the "corporatocracy," and these are the heads of the big corporations, big banks and government, and they tend to be the same person. They jump across these lines and MacNamara is a great example of that. He was president of Ford and then he became secretary of defense under Kennedy and Johnson and then he became president of the World Bank. And in all three roles, his main job was to promote American business, to promote the corporatocracy, to bring the goodies home, to exploit the world. And he was in democratic regimes, Kennedy and Johnson.

Today we've got Dick Cheney who's basically in the same picture. We had George Schultz under the former President Bush. So, the two Bushes both have these types of people, too. Condoleezza Rice. Government is filled with these people.

But it is not just a Republican issue. It's a bipartisan issue. It goes across all the lines, and MacNamara is a very good example of that. I think, at the same time, MacNamara was one of the most important people in terms of framing the new economics, what he called aggressive management. It was aggressive about going out and basically taking the world and bringing it into us so that today, out of the 100 largest economies in the world, 52 are corporations; 47 of them are U.S. corporations – they're not countries, they're corporations.

Amy Goodman is the host of the nationally syndicated radio news program Democracy Now, where the entire transcript of this interview is posted.

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