Antidotes to neocolonial “development” in Central America

Santa Marta’s school, church and a greenhouse

Following on my post yesterday about the Biden Plan: what would it take for a development plan to work for Central Americans? We need to unwrap that word “development.”

Over many years, it has been my joy to work with organizations created by people in the region who talk about their aspirations in ways that are different from the White House or the World Bank.

In May 2018, I found myself in conversation with one of the founders of the Association for Economic and Social Development (ADES) in the northern part of Cabañas department in El Salvador. ADES sometimes describes itself as a “social movement that is organized as a non-governmental organization” (NGO).

I asked one of the founders, Alonso, about the word “development” in the organization’s name. In response, he gave me what he called the “A-B-C-D of all of this.” The roots of community organization in the area were in the growth of base Christian communities (CEBs) in the 1960s and 70s, he said. Because of persecution during the civil war in the 1980s, the people of Santa Marta fled to Honduras. As the war came to an end in the late 80s and early 90s, and as the people of Santa Marta returned in October 1987, ways had to be found for the people “to defend themselves” against local and national governments. Alonso said: 

“We had to create conditions for life. We wanted development in rural areas. We sought water, land, health. Later, this was organized in a more intentional way [with the creation of ADES in 1992]. The first thing we did was to build a community centre for events, parties, weddings, and meetings.” 

Over time, people—especially women—began to see different possibilities for changing their conditions. Women began a small store that they owned cooperatively. Other projects began and spun off: micro-credit, community radio, the regional AIDS committee CoCoSI, among others. The United Church of Canada and the Anglican Primate’s World Relief and Development Fund were supporters from the outset. Alonso added: 

“For us development means to improve a the conditions of the people a little bit: having water in the communities, sharing land, getting access to health care and education, and transportation.”

Today, formal education is one of Santa Marta’s great successes. More than 100 people graduate from high school each year. ADES continues to lead in agricultural development and training in northern Cabañas. Even so, about half of the young grads choose to leave each year to continue their educations or to work in other cities, but they leave with a huge educational advantage.

Leaders of ADES in 2016

Throughout Central America, churches and NGOs support a wide variety of initiatives that benefit small farmers, emphasizing good ecological practice including reforestation. They also work to strengthen the voices of women in community and in their churches.

The challenges are growing. Climate change has meant both prolonged drought and more severe storms, including two hurricanes this past November. Part of the problem, especially in El Salvador, Honduras and Guatemala, is high levels of violence that is partly related to the illegal drug trade and to the growth of street gangs. Those are factors leading to migration away from the region. 

In the face of violence in El Salvador, churches work to build a “culture of peace.” For example, Emmanuel Baptist Church (IBE) in San Salvador backs a program for youth led by youth. In a meeting in June 2019, 17-year old Laura said: “The way to achieve peace at the national level is to start from what is small. Begin with childhood. If someone beats a child, tell them not to, that’s not good. You have to treat them the way you want to be treated.” Peace, then, is the way of non-violence, providing people with the skills they need so they need so as not to be subject to the logic of the gangs. 

“Perhaps we are just a few people,” said Laura’s friend Michelle, also 17. “But if we come together, not just as church, not just as school, not just activists, but everyone, and if the government would support us, peace can be achieved.”

Yes. And:

In a conversation around the same time with another friend, Jorge, a leader in Guatemala’s LGBTI community, I said that it seemed to me that the violence in some Central American countries had to do with the failure of the peace accords that ended the civil wars, and the failure to provide some sort of authentic development across the region. 

But Jorge replied: “No, in fact, it has all worked out exactly the way that the elites and the big business-owners wanted: people are fighting with each other, too afraid to raise their voices, and they are afraid of their neighbours.” 

In that sense, the work of ADES and IBE represents signs of a future still to be attained. Part of the logic of ADES was for the people to live as if they had won the war: land was re-distributed, people were empowered for change.

But on the larger scale, our efforts for peace and a more inclusive vision of human development were largely defeated by a U.S.-backed military strategy and then by the imposition of a toxic development model, the one that has resulted in incredibly high rates of violence and unconstrained migration toward Mexico and the United States.

Neo-colonial inertia and development plans for Central America

The shopping mall model of development (Honduras, 2009)

In October 2008, in a classroom in Ciudad Juárez—one of the most violent cities on the planet but on the border with the richest country—an international ecumenical group considered the latest official development plan for Mexico and Central America.* 

After hearing from Raúl Moreno, an economist from El Salvador long active in the Hemispheric Social Alliance of groups that questioned free trade and other top-down, capital-intensive development schemes, I wrote in a report:

“When you look at the extreme violence occurring in Juárez, the de-population of rural Mexico, the official development plans in Central America (and consequent dislocation of rural populations), and the extreme violence carried out in Colombia to drive rural populations from their land, you come away with the impression of a development model that has been continuously applied since the days of the “wild, wild west” in the United States. The model is now extended all the way to Colombia and beyond: drive Indigenous peoples on to ever more marginal lands; destroy small farmers; insert mines and hydro-electric projects where convenient to the interests of large capital; and reward allies by granting them the lands of the displaced.”

I suppose it’s progress of a sort that the masters now see the need to incorporate ecological goals into their development plans.

But these plans have at their core a neoliberal notion of development: cut protection for workers, reinforce free trade agreements, and protect private-sector investment. 

The latest plan, promoted by President Joe Biden, Vice-President Kamala Harris and the leaders of Guatemala, Honduras and El Salvador, does not correspond to the real needs and aspirations of the people: land redistribution, legal reform, ecological justice, human rights, and for Indigenous peoples: full implementation of free, prior and informed consent.

On Monday, April 26, the same day that Harris held a video conference with Guatemalan President Alejandro Giammattei, the progressive Mexican daily newspaper La Jornada questioned the U.S. approach. During the U.S.-led Earth Day summit that was held a few days earlier, Mexican President Andrés Manuel López Obrador proposed extending a Mexican government agricultural support program to Guatemala, Honduras and El Salvador—with U.S. financial support. 

The program, Sembrando Vida (Sowing Life), has been running in Mexico for two years and is intended to generate jobs in the small-farming sector, reactivate the economy in areas affected by out-migration, and overcome deforestation. “The plan seeks to overcome social exclusion and the poverty that afflicts 61 per cent of the rural population.” It includes focus on ejidos and other community-controlled farms overlooked or attacked by successive neoliberal governments in power between 1988 and 2018 in Mexico.

In her meeting with Giammattei, the Vice-president Harris announced $310 million in U.S. government support for humanitarian relief and to address food insecurity in Guatemala, Honduras and El Salvador. This is in addition to $4 billion announced by President Biden on the day of his inauguration that is intended to “address the root causes of migration” from Central America.

Graffiti in Honduras, 2009: “Long live the people in resistance.”

“Without strong collective action, this will mean MORE money for militarization and neoliberal economic policies that will continue to displace people from their lands and communities,” said a statement from the Committee in Solidarity with the People of El Salvador (CISPES). CISPES, joined by other solidarity and religious groups, demanded an end to U.S. police and military assistance in El Salvador, Honduras and Guatemala, and an end to development policies that “promote climate change, privatize natural resources and public services, violate workers’ rights and destroy Indigenous and communal lands.”

One of the last people I met before the pandemic lockdown began in mid-March 2020 was Giovanni Batz (G’io B’atz), a U.S.-Guatemalan researcher. He was in Toronto for a two-day conference about Central American migrants and refugees at York University. In this essay, he denounces the latest U.S. plan and explains why it will fail. By supporting further militarization and neoliberal development in Central America, the United States contributes to displacement. “When discussing climate change, hunger, and poverty as causes of migration,” he writes, “land redistribution, reform, and rights must be discussed as solutions.” 

La Jornada’s editorial noted that Biden-Harris roll-out is through a series of bilateral meetings. “The White House has not accepted multilateral treatment of human displacement and the environmental crisis, the newspaper said. 

It reflects the historic preference of the White House to negotiate individually with each country, a terrain in which the superpower can more easily impose its terms and conditions. As it confronts the migration issue, we hope that the Democratic administration will go beyond the colonial inertia that shapes every foreign policy action from a position of advantage over and against the other, and that it will recognize that behind the migration flows there are economic and social components apart from climate change which must, nevertheless, be confronted with the same urgency as global warming.

* Plan Puebla Panamá had just given way that year to the Proyecto Mesoamérica (the Project for the Integration and Development of Mesoamerica), which would later become the Comprehensive Development Plan and then the Comprehensive Regional Protection and Solutions Framework (MIRPS).

No global recovery so long as most countries are excluded from solutions

Back in the mid-1980s, as Dominican farmers and trade unionists were teaching me and the rest of the world about debt conditionality, structural adjustment and the International Monetary Fund, their critics said they merely mimicked the government’s excuses for inept policies. The fact that we’re having the same conversations again almost 40 years later says to me that the farmers and workers were right.

Take a moment to recall what people in many global South countries were enduring in the 1980s. A glut of oil money in U.S. and European banks in the 1970s had led to a loans frenzy: developing countries got cheap credit. But the recession in the 1980s saw interest rates skyrocket. 

Protesters in the Dominican Republic in 1984 took their protests into the street. Many civil society organizations try to carry voices of those locked out of decision-making spaces inside meetings like the UN gathering on debt relief.

The resulting “third-world debt crisis” (as it was called at the time) became a shock-doctrine opportunity to strengthen a harsher form of capitalism, one that came to be called “neo-liberal economic globalization” (or simply neoliberalism or globalization). Dominicans and countless others around the world protested, but by the turn of the millennium, this new world order was firmly entrenched.

A new crisis—the effects of the Covid-19 pandemic—has revealed the old, unhealed fractures as countries struggle to sustain already-weak health systems, provide testing and vaccines, and keep economies at least partly functioning. 

To their credit, the United Nations secretary general, Antonio Guterres, and Prime Ministers Justin Trudeau of Canada and Andrew Holness of Jamaica, convened a conversation March 29 among world leaders and heads of various international financial institutions.

Top row: Prime Minister Andrew Holness, Jamaica; Lidy Nacpil, Asian Peoples’ Movement on Debt and Development; Ngozi Okonjo-Iweala, World Trade Organization. Bottom row: Prime Minister Justin Trudeau, Canada; President Alberto Fernández, Argentina; and President Nicolás Maduro, Venezuela.

Holness and Argentinian President Alberto Fernández called for fundamental reform of “debt architecture” and the need for a “multilateral framework for debt restructuring.” Such steps would break from current practice, which allows wealthier countries (G7, G20) or groups dominated by them (the World Bank and International Monetary Fund), along with private creditors, to make decisions binding on all the other countries. Fernández added that there can’t be a global recovery when there are countries excluded from the solutions.

Venezuela’s president, Nicolás Maduro, said nations should ensure that “measures are not a weapon to control our countries.” He urged “comprehensive restructuring” and an end to use of “unilateral, coercive and criminal” sanctions against his country and others.

The civil society organizations (CSOs) that have laboured for decades to build a system to manage and resolve debt issues said later that the leaders “continue to kick the can down the road” on meaningful reform. The groups welcome measures like the G20 agreement to further delay debt payments by the most impoverished countries (a mechanism called the Debt Service Suspension Initiative, or DSSI) to June 2021, and action to use global reserve funds (“special drawing rights,” or SDRs) to support recovery efforts in developing countries. [On April 1, the IMF approved a third tranche of grants for debt service relief for 28 countries through Oct. 15.]

But more needs to be done, said the CSOs. “Rich countries are continuing to prioritise their own power over global solidarity, leaving many people behind.” Moreover, the measures do not do enough to assist middle-income countries (like Argentina and Jamaica) with their challenges, or address the problem of the private-debt “cartel.”

“Throughout decades of exploitation, rich countries accumulated a social and ecological debt owed to the people in developing countries which is higher than our financial debt. Today these same rich nations fail to deliver the system changing solutions that we need, including immediate debt cancellation by all lenders for all countries in need”.

Lidy Nacpil, Coordinator of the Asian Peoples’ Movement on Debt and Development (APMDD)

“A multilateral framework under the UN is the only way to resolve the crippling debt crises affecting the world’s poorest. This is the only way to ensure debt cancellation in a fair and orderly fashion, where developing countries have a seat at the table. This would ensure a future of responsible lending and borrowing together with regulation based on human rights and gender justice.”

Patricia Miranda, Advocacy Coordinator at the Latin American Network for Economic and Social Justice (Latindadd)
World Social Forum, Porto Alegre, January 2005

One potential forum for further work would be a global conference next year on Financing for Development—”Monterrey+20”—with the issue of global economic architecture firmly on the table.

At the 2002 Monterrey conference, the World Council of Churches was among those who pressed for  

“Pursuit of a permanent solution to the debt problem both for poor countries and middle-income countries starting with an immediate cancellation of the external debt of poor countries and setting up, under UN auspices, an independent and fair debt arbitration mechanism for current and future loans which will promote ethical lending and borrowing policies.”

As Ngozi Okonjo-Iweala, the newly appointed Director-General of the World Trade Organization, stated during the meeting: “lost decades are a policy choice.”

No doubt those Dominican farmers would agree.