Writing this book has been deeply emotional, and often a painful and humiliating experience. It has been frightening in a way nothing I ever faced before has been frightening. But it has opened me to a sense of relief I have never known until now, a feeling I can only describe as ecstatic. – John Perkins, summarizing his experience in writing “Confessions of an Economic Hit Man”
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Confessions of an Economic Hit Man” is best known for its exposure or shedding of light on a corrupt system (that Perkins refers to as a “multi-trillion dollar scam”) that keeps or drives billions into poverty in order to add to the wealth and power of the already wealthy and powerful. Much of the book’s power and legitimacy comes from the fact that, while there are many books today that discuss this corrupt system, this is one of the few, if not the
only book that tells the story from the point of view of an insider who spent several years working for and benefiting from that system. That story makes Perkins’ book very important reading for anyone interested in understanding why 850 million people are malnourished today, and approximately
five million children die every year of hunger and its consequences, despite the fact that there is enough food in the world to feed everyone.
But there is an equally compelling story in Perkins’ book – the story of the moral transformation of a man who knowingly played a major role in this corrupt system for ten years, but who eventually developed the courage not only to quit the system but to write a book about it, in the face of substantial personal risk. I find such a story to be tremendously uplifting in a world where the moral transformation of
society is greatly needed in order to improve upon or even preserve world civilization as we know it, and is even needed in order to preserve the life sustaining qualities of our planet itself. The story of that moral transformation is what I emphasize in this post.
What economic hit men do and how the system worksHere’s the way Perkins explains the system: Economic hit men (EHM) are paid by U.S. corporations to develop economic projections for major development projects in third world countries. Their projections are supposed to predict substantial economic growth and thereby justify huge loans from international lending institutions. The money from the loan then is immediately funneled into U.S. oil, engineering or construction companies (which is a precondition of the loan) to develop their projects.
The problem is that the projects often or usually benefit only the country’s wealthy and powerful elite, who are represented by the very government that arranged the loan. If all works out well for the involved corporations, the country is unable to repay the debt, which forces them to be perpetually indebted and consequently ensures their loyalty to the United States. That enforced loyalty ensures that the country’s government will perform favors for us, such as allowing our corporations access to their natural resources, allowing the construction of U.S. military bases on their soil, and the casting of crucial U.N. votes in our favor.
Thus, the huge debts incurred under the system cause great harm to the vast majority of a country’s population, not only because of increased taxes and severe cuts in health care, education and other social services, but also because the projects themselves usually deplete a country’s resources and pollute its environment, often displacing large segments of the population in the process. At the time that Perkins wrote his book, third world debt had grown to $2.5 trillion, and the annual interest on their debt was larger than annual spending on health care and education combined.
If the EHMs are unsuccessful in their efforts to convince a government to play ball, then what Perkins calls jackals are sent in to assassinate or overthrow the uncooperative government officials in question, as was done for example in
Iran in 1953, in
Guatemala in 1954, in
Chile in 1973, or in
Indonesia in 1965. If that doesn’t work either, then we send in our military, as we did in
Panama in 1989 or in
Iraq in 1991 and 2003.
Perkins explains that many of the lower level people involved in these efforts may not even realize that they are doing anything wrong. To many of them, the whole system is justified by its capacity to increase “economic growth”, which supposedly brings benefits to everyone. But that is a fallacy. Even when the forecasts of the EHMs are correct, in that “economic growth” actually does occur, the benefits are generally severely unequal in their distribution. Furthermore, the whole concept of “economic growth” is terribly misleading. If a country is bombed or its environment is destroyed through the depletion of its natural resources or the pollution of its air, water, or soil, the negative effects are not counted
against economic growth, while the rebuilding efforts or projects that destroy the environment are counted
in favor of economic growth. Thus, the Iraq War has resulted in “economic growth” in Iraq, even as the country is being destroyed, nearly a million Iraqis
have been killed, and four million have been
displaced from their homes.
In the words of John Perkins:
We build a global empire. We are an elite group of men and women who utilize international financial organizations to foment conditions that make other nations subservient to the corporatocracy running our biggest corporations, our government, and our banks. Like our counterparts in the Mafia, EHMs provide favors...
How John Perkins became an EHM and self-justified what he didPerkins was not fooled into doing what he did. Rather, he was seduced by the money and the sex that his career opened for him. He embarked on his career with his eyes wide open. He explains that he was informed by Claudine, the beautiful woman who was assigned to recruit him, that:
“My assignment is to mold you into an economic hit man. No one can know about your involvement – not even your wife… I’ll be very frank with you, teach you all I can during the next weeks. Then you’ll have to choose. Your decision is final. Once you’re in you’re in for life…”
“We’re paid – well paid – to cheat countries around the globe out of billions of dollars”… My job, she said, was “to encourage world leaders to become part of a vast network that promotes U.S. commercial interests. In the end, those leaders become ensnared in a web of debt that ensures their loyalty. We can draw on them whenever we desire – to satisfy our political, economic, or military needs… “
Yet throughout the 1971 to 1980 period that he worked for MAIN, the private company that hired him to be an EHM, Perkins was besieged by periodic doubts – even from the very beginning:
Every time I walked away from Claudine’s apartment, I wondered whether I was doing the right thing. Somewhere in my heart, I suspected I was not. But the frustrations of my past haunted me. MAIN seemed to offer everything my life lacked, and yet I kept asking myself if Tom Paine would have approved. In the end, I convinced myself that by learning more, by experiencing it, I could better expose it later – the old “working from the inside” justification. When I shared this idea with Claudine, she gave me a perplexed look. “Don’t be ridiculous. Once you’re in, you can never get out…”
The ambivalence that Perkins felt about his job during this period was a recurring theme. An incident from his follow-up book, “
The Secret History of the American Empire – Economic Hit Men, Jackals, and the Truth about Global Corruption”, depicts this well. While working on a project in Egypt, Perkins was taken aback and bewildered by the utter contempt with which some Egyptian government officials treated him. Then it dawned on him:
The Egyptians knew something that only a few of my countrymen comprehended: We used data… for empire building. EHM reports were far better weapons than Crusader swords had ever been… People like me were the real danger. We were the ones who took advantage of the havoc, channeled the fear, and made sure that those who capitulated honored their articles of surrender… Ultimately we had to be pampered because we sat at the top of the heap. Men like Dr. Asim had no choice but to give in or lose their jobs. And he detested me for it.
Ecuador – an exampleIn his two books Perkins talks a lot about the destruction wrought by him and other EHMs to the people of several different countries, including Indonesia, Saudi Arabia, Iran, Iraq, Panama, Columbia and Ecuador. He emphasizes Ecuador a good deal because he had a special fondness for that country originating from his Peace Corps days before he joined MAIN.
He talks about the destruction of vast areas of Ecuador’s rain forests, the transformation of rivers into cesspools, and the disappearance of several animal species in Ecuador as the result of a $1.3 billion
oil pipeline constructed there. He notes that for every $100 of oil taken from the Amazon forests, $75 goes to the oil companies, $18 goes to pay off the debt, and only $3 goes to the people who need the money the most. Since 1968, the nation’s debt grew from a quarter billion dollars to $16 billion, poverty level grew from 50% to 70%, and under- or unemployment grew from 15% to 70%.
There was a brief interlude, however. In 1979 Ecuador elected its first President, after a long line of dictators. Jaime Roldos came to the Ecuadorian presidency promising to put his peoples’ interests above the interests of the oil companies, and he did in fact stand up against the oil companies. In May, 1981, shortly after warning foreign interests that they would be asked to leave his country if their plans didn’t benefit his people, he died in a
helicopter crash, widely believed in Latin America to be the work of the CIA. Roldos was replaced by a man who was compliant with U.S. wishes, and it was all downhill for Ecuador from there.
In 2003, Perkins came back to Ecuador to try to prevent
a war that he held himself partially responsible for provoking. This would be a war fought against indigenous Ecuadorians against the Ecuadorian Army assisted by U.S. Special Forces advisors, on behalf of oil companies who accused an indigenous community of taking its workers hostage, as an excuse for war. Lawyers who represented the indigenous community in an effort to get the oil companies off their land had recently died in a plane crash.
The Carter interludePerkins does note one U.S. president who served during the time period of his book, who bucked the system. Commenting upon the unfortunate failure of Jimmy Carter to win re-election in 1980:
A president whose greatest goal was world peace and who was dedicated to reducing U.S. Dependence on oil was replaced by a man who believed that the United States’ rightful place was at the top of a world pyramid held up my military muscle, and that controlling oil fields wherever they existed was part of our Manifest Destiny. A president who installed solar panels on White House roofs was replaced by one who, immediately upon occupying the Oval Office, had them removed.
Carter may have been an ineffective politician, but he had a vision for America that was consistent with the one defined in our Declaration of Independence. In retrospect, he now seems naively archaic, a throwback to the ideals that molded this nation and drew so many of our grandparents to her shores. When we compare him to his immediate predecessors and successors, he is an anomaly. His world view was inconsistent with that of the EHMs. Reagan, on the other hand, was most definitely a global empire builder; a servant of the corporatocracy…
Perkins notes that the airplane crash death of Ecuadorian president Jaime Roldos occurred shortly after Reagan took office; and the president of Panama, Omar Torrijos, who re-negotiated with President Carter the
Panama Canal Treaty that the Reagan administration so despised, died in
another airplane crash a few months later.
Perkins’ decision to quit being an EHMPerkins says that it was the courageous examples set by the presidents of Ecuador and Panama, in standing up to the corporatocracy in order to better the lives of their own people, which finally made him resolve to quit being part of the system. He said, “I would try to model myself after modern heroes like Jaime Roldos and Omar Torrijos.”
His final decision came a few months later, while on vacation in the Virgin Islands. He was wondering why he should have qualms about exploiting the peoples of other lands, given that he was raised to admire Americans who had exploited other peoples. He was viewing an ancient plantation formerly worked by slaves. He notes:
The tranquility of the place masked its history of brutality, even as it masked the rage that surged within me. … I came face-to-face with the shocking fact that I too had been a slaver, that my job at MAIN had not been just about using debt to draw poor countries into the global empire. My inflated forecasts were not merely vehicles for assuring that when my country needed oil we could call in our pound of flesh… My job was also about people and their families, people akin to the ones who had died to construct the wall I sat on, people I had exploited. For ten years, I had been the heir of those slavers who had marched into African jungles and hauled men and women off to waiting ships. Mine had been a more modern approach, subtler – I never had to see the dying bodies, smell the rotting flesh, or hear the screams of agony. But what I had done was every bit as sinister…
I closed my eyes to the walls that had been built by slaves torn from their African homes. I tried to shut it all out… I leaped up, grabbed the stick, and began slamming it against the stone walls. I beat on those walls until I collapsed from exhaustion…. I knew that if I ever went back to my former life, to MAIN and all it represented, I would be lost forever… I had become a slave. I could continue to beat myself up as I had beat on those stone walls, or I could escape.
As soon as he returned from his vacation, April 1980, he walked into his boss’s office and resigned.
Perkins tries several times to write his bookShortly after resigning from MAIN, Perkins resolved to write his book, initially planned to be titled “The Conscience of an Economic Hit Man”. Though he was careful not to tell his former employer about his plans, he nevertheless did tell several people, in an attempt to elicit ideas for the book. Word got around, and before too long he was offered a job as a consultant, which he accepted. On his first day working his new job he was asked if he was planning any books, and he was told that part of the condition of his job was that he not write any books about his previous work. He answered that he was not planning to write a book, thinking that otherwise threats would follow.
A similar pattern was repeated two more times, once following the U.S. invasion of Panama in 1989, and once following the U.S. invasion of Iraq in 1991. Those two events impressed upon him the precarious state of world peace and the need to speak out against the forces that threatened it. But each time he again dropped his project, and on those occasions threats
were involved.
Final decision to write the bookIt was on September 11, 2001, that Perkins decided once and for all to write his book. This time he wouldn’t tell anyone about it until it was published, so there would be no more threats or bribes. Standing at Ground Zero shortly after the attacks, Perkins says “I was thinking about all the other places in the world where people hate our companies, our military, our policies, and our march toward global empire.”
Specifically, he gives two reasons for his final decision. One involved his only child, Jessica, who had just finished college. Discussing his fears with her, she said, “Don’t worry, dad. If they get you, I’ll take over where you left off. We need to do this for the grandchildren I hope to give you some day!” The other reason he gives is:
My dedication to the country where I was raised, to my love of the ideals expressed by our Founding Fathers, to my deep commitment to the American republic that today promises “life, liberty, and the pursuit of happiness” for all people, everywhere, and to my determination after 9/11 not to sit idly by any longer while EHMs turn that republic into a global empire”.
Perkins ends with some final words for his readersFor me, confessing was an essential part of my personal wake-up call. Like all confessions, it is the first step toward redemption. Now it is your turn… Ask yourself these questions. What do I need to confess? How have I deceived myself and others? … Why have I allowed myself to be sucked into a system that I know is unbalanced? What will I do to make sure our children, and all children everywhere, are able to fulfill the dream of our Founding Fathers, the dream of life, liberty, and the pursuit of happiness? What course will I take to end the needless starvation, and make sure there is never again a day like September 11? …
These are the essential questions of our time. Each of us needs to answer them in our own way and to express our answers clearly… Paine and Jefferson and all the other patriots are watching over our shoulders. Their words continue to inspire us today… It is now time for each and every one of us to step up to the battle line, to ask the important questions, to search our souls for our own answers, and to take action.