“How Is Identity Affected By Some Economic, Political, Environmental, and Social Dimensions of Globalization?” BANANAS AND GLOBALIZATION Case Study

My friend asked me if I wanted a frozen banana, I said "No, but I want a regular banana later, so... yeah".

Canadians Love Bananas Canadians eat 3 billion bananas a year- about 100 per person They are the 2nd most popular fruit in Canada Bananas do not grow in Canada. They are shipped upwards of 5000kms to get to here from developing countries

Exporting Social Problems: Panic of 1893 Over 500 banks close. 15,000 companies go out of business. Approximately 30 percent of the rail system jeopardized by company closures. The unemployment figures stood at over 14 % for the civilian labor force and over 25% for non-farm workers. Even Theodore Roosevelt, then the civil service commissioner, had to sell four acres of land to keep his family out of insolvency.

The continuing influx of immigrants only contributed to the massive employment problems, as more and more people competed for fewer and fewer jobs.. Workers strikes: most notable was the Pullman strike in Chicago.

With the new markets being made available, American businessmen began to move into Central America. Initially, it is to build overland routes across the isthmus to speed up the shipping of goods to the American west coast and the Asian markets.

America’s eye had been cast on Latin America since the days of the American Revolution. Thomas Jefferson was so sure that America was destined to rule the southern part of the continent that he once recommended that government officials should learn Spanish. Central America, with its potential for an isthmus route to the Pacific, drew the most attention of the American government and American entrepreneurs over the years. First overland route was built as a result of a treaty negotiated by the American chargé to Colombia, Benjamin Bidlack, that gave the United States the right to establish a route across Panama.

William Aspinwall created the Pacific Mail Steamship Company in A year later, Cornelius Vanderbilt opened his overland route crossing Nicaragua. Entrepreneurs soon began to flood into Central America, investing in railroads, shipping interests, coffee, and bananas. American involvement in the area continued to grow at a slow but steady rate over the next few decades, but the years following the Panic of 1893 would be the years of the Banana Men

A Short History of the Banana in North America Bananas were virtually unknown in North America until around 1870, when they were first imported. They were considered a rare exotic treat, as they were hard to transport before they became too ripe. In 1876, bananas were sold wrapped in tin foil for ten cents (about 2.25 by today's standards) each in Philadelphia at an event commemorating the 100 th anniversary of the signing of the Declaration of Independence.

When bananas first began to be imported in quantity, the American people were so unfamiliar with it that an article appeared in the Domestic Cyclopaedia of Practical Information instructing how one was to eat a banana: "Bananas are eaten raw, either alone or cut in slices with sugar and cream, or wine and orange juice. They are also roasted, fried or boiled, and are made into fritters, preserves, and marmalades."

Bananas & Dimensions of Globalization Banana production is a great example of the forces of globalization at work and how they affect and are affected by, people’s identity. – Political – Economic – Social – Environmental

- Created 40,000 jobs in Guatemala - investments valued at $60 million - owned the country’s telephone and telegraph facilities - owned almost every mile of railroad in the country - controlled its only port on the Atlantic Ocean - monopolized banana exports - not happy about agrarian reform  lobbied US government to intervene on grounds of “stopping Communism”

They also provided loans to the various dictators who ensured to keep it business as usual for UFCO. All imported material coming into Guatemala came through UFCO owned ports. The company was exempt from paying real estate taxes and tariffs to Guatemala for over 99 years, and it was granted exclusive right to transport mail between America and Guatemala.

Eventually, UFCO would own almost eighty percent of Guatemala, over 550,000 acres of land in a country that is less than half the size of Alberta.

Modern Banana Wars Beginning in 1999, the United States and the European Union were involved in a modern banana war.

The United States, backed by five Latin American banana-exporting nations, argue that the European Union's banana import rules favored former European colonies in Africa and the Caribbean at the expense of the Latin American growers and U.S. marketing companies, like Chiquita.

Chiquita supplies 50% of the EU's banana imports each year, but wanted an even larger market share. Chiquita grows no bananas in the US, but few days after the corporation donated $500,000 to the Democratic Party the Clinton/Gore administration filed a complaint with the WTO on behalf of Chiquita. The WTO ruled in favor of the U.S. and Chiquita. The EU initially refused to comply with the WTO ruling

Chiquita then donated $350,000 to the Republican Party, and the Republican- dominated Congress prepared legislation to impose tariffs on goods imported from the EU as punishment for refusing to comply with the WTO's ruling.

In 2001, the U.S. and the EU came to terms Under the terms of the deal, the U.S. has agreed to drop a 100% tariff on $191.4 million worth of EU export items in nine categories that was imposed in 1999 as retaliation for the EU's banana policy. Those tariffs, which were backed by the World Trade Organization (WTO), covered mostly European export luxury items such as British linens, Danish hams and French handbags.

Economic Dimensions Bananas are cheap for Canadians… YEAH! (Or not?) – Cheapest fruit sold in Canadian supermarkets Why? Bananas are grown on huge plantations owned and controlled by transnational corporations – Economies of Scale- savings that come from producing, using and buying things in large quantities

Economic Dimensions Bananas are cheap for Canadians… YEAH! (Or not?) – Cheapest fruit sold in Canadian supermarkets Why? Transnational's control many ships, containers and warehouses that are part of the banana distribution process, thus lowering prices

Economic Dimensions Bananas are cheap for Canadians… YEAH! (Or not?) – Cheapest fruit sold in Canadian supermarkets Why? Banana yields are high because of large use of chemical fertilizers and pesticides

Economic Dimensions Bananas are cheap for Canadians… YEAH! (Or not?) – Cheapest fruit sold in Canadian supermarkets Why? Labor in South America is cheap

Ecuador, Bananas & Economics Highest exporter of bananas to North American markets Ecuador bananas are cheap because the cost of producing them is low – Question: How do they keep the prices so low? – Answer: One reason, Ecuadorean banana workers are the lowest paid in Latin America Question: How low is low? Answer…

Ecuador, Bananas & Economics In 2002, male banana plantation workers earned about $6.40 per day! Women were paid even less, and children are sometimes not paid at all. Calculate how much a male banana plantation worker earns in a month, working 6 days a week. (There are an average of 4.3 weeks in a month). The estimated amount that a family of four needs per month to meet basic needs is $220. How does this compare with the salary of the worker?

Ecuador, Bananas & Economics -Cycle of Poverty-

Political Dimensions 3 American transnational's control the majority of banana production: – Chiquita, Dole, Del Monte Bananas are also grown in Jamaica and St. Lucia; These small farms can not compete with the transnational’s prices World Trade Organization controversy…

Environmental Dimensions Challenges to the Environment: Loss of forests to create large growing areas for bananas – Example: In Costa Rica, 60% of the country’s rainforests have been cut down to clear land for banana plantations One variety of banana: Cavendish – Why could this be a problem?

The Environment and Bananas Challenges continued… Heavy use of synthetic fertilizers Many of the chemicals are considered hazardous to human health Chemicals from banana plantations run off into rivers, lakes and oceans, poisoning fish, birds, and other wildlife. So what about organic bananas? Why not organic?

Social Dimensions Banana workers face many challenges! – Low wages Less then needed to meet their basic needs – Unsafe working conditions Workers handle chemicals without safety equipment or training Banana fields are often sprayed with the workers in the field

Bananas & Social Conditions Indigenous peoples are often displaced because of the clearing of land for banana plantations, and destruction of the environment with the use of chemicals Wildlife populations deplete leaving the Indigenous peoples without a source of food

BANANAS AND OIL! 01/06/dirty-oil-vs-blood- bananas-slugfest/