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History of modern banana plantations in the Americas

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  • 3 chapters

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Through Land reform and Cold War

Origins

The first step in the link can be said to have taken place when United States based business men began work on railroads that would allow the Isthmus of Panama to be traversed. Minor C. Keith won the right to build a trans-Isthmus railroad through Costa Rica in 1871.

In 1876, a New York-based sea captain named Lorenzo Dow Baker returned from a voyage to the Orinoco River, and stopping in Jamaica bought 160 stems of bananas in the hopes that he could recoup losses from his voyage by selling them in Philadelphia. His gambit was successful, and he quickly began shipping from Jamaica to North America. He then joined with Boston-based Andrew Preston to form the Boston Fruit Company, the first company to engage in all aspects of the banana industry. Later, in 1899, Boston Fruit eventually merged with other firms to form the United Fruit Company. Today, the company is known as Chiquita Brands International. To better understand banana industries global influence, by 1996, Chiquita Brands International, Dole, and a later dominant actor, Fresh Del Monte, accounted for 65% of the worlds exports, total. The secret to the Boston Fruit Company's success was the use of early forms of refrigeration to keep the bananas from becoming overripe in the voyage from the Caribbean.

United Fruit Company dominated multiple aspects of banana production, including exportation, agriculture, and labor practices of Latin America and the Caribbean. The combination of land concessions to the infrastructure builders, usually subsidiaries of the shipping companies turned fruit producers, and the monopoly over railroad infrastructure and shipping allowed the United Fruit Company and Standard Fruit to achieve nearly complete control over the economies of the countries in which they operated. Since banana exports came to dominate the overseas trade and most of the foreign exchange earnings of Central American countries, and the companies could use their financial clout as well as carefully established connections with local elites, they had great influence over politics in those areas, leading O. Henry, who lived in Honduras (which he called "Anchuria") in 1896–97 to coin the term banana republic for them. Company influence was buttressed both by their willingness to hire mercenaries as paramilitary forces and to involve the United States government in military interventions when they felt their interests were threatened.

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