The term "Economic Hitman" was first coined by John Perkins, a former employee of the consulting firm Chas. T. Main, in his 2004 book "Confessions of an Economic Hit Man". Perkins described how he and others like him were used by the United States government and corporations to exploit developing countries by saddling them with massive debt and then using that debt to control their economies. In this article, we will delve into the secrets and insider knowledge of economic hitmen, exploring their methods, motivations, and the impact of their actions on the global economy.
The Role of Economic Hitmen
Economic hitmen are highly paid professionals who use their expertise in economics, finance, and politics to convince developing countries to accept large loans from institutions like the World Bank and the International Monetary Fund (IMF). These loans are often used to finance large-scale infrastructure projects, such as dams, highways, and power plants. However, the projects are often designed to benefit the corporations and governments of the developed world, rather than the people of the developing country. The debt incurred by these loans can be crippling, and the economic hitmen use this debt to exert control over the developing country’s economy and politics.
Methods of Economic Hitmen
Economic hitmen use a variety of methods to achieve their goals, including:
- Debt creation: Economic hitmen convince developing countries to accept large loans, which are often used to finance projects that are not in the best interest of the country.
- Corruption: Economic hitmen often bribe government officials and other influential individuals to secure their cooperation.
- Manipulation of economic data: Economic hitmen may manipulate economic data to make a project appear more viable than it actually is, or to hide the true costs of a project.
- Threats and intimidation: Economic hitmen may use threats and intimidation to persuade government officials to cooperate with their plans.
These methods are often used in combination to achieve the desired outcome. For example, an economic hitman may use debt creation to convince a developing country to accept a large loan, and then use corruption to secure the cooperation of government officials.
Case Study: Ecuador
Ecuador is a prime example of how economic hitmen can devastate a country’s economy. In the 1970s, Ecuador was persuaded to accept a large loan from the World Bank to finance the construction of a massive oil pipeline. The loan was pushed by economic hitmen who promised that the pipeline would bring wealth and prosperity to the country. However, the pipeline was built by a US corporation, and the majority of the oil was exported to the United States. The debt incurred by the loan was crippling, and Ecuador was forced to implement austerity measures, including cutting social programs and increasing taxes. The result was widespread poverty and unrest.
| Country | Loan Amount | Debt-to-GDP Ratio |
|---|---|---|
| Ecuador | $1.5 billion | 120% |
| Argentina | $50 billion | 150% |
| Brazil | $100 billion | 100% |
The table above shows the loan amounts and debt-to-GDP ratios for several countries that have been affected by economic hitmen. The debt-to-GDP ratio is a measure of a country's debt as a percentage of its gross domestic product (GDP). A high debt-to-GDP ratio can indicate that a country is at risk of defaulting on its debt.
The Impact of Economic Hitmen
The impact of economic hitmen can be devastating for the people of a developing country. The debt incurred by large loans can lead to:
- Poverty: The debt can lead to austerity measures, including cutting social programs and increasing taxes, which can push people into poverty.
- Inequality: The debt can also lead to increased inequality, as the wealthy elite may be able to take advantage of the economic opportunities created by the loan, while the poor are left behind.
- Lack of access to basic services: The debt can also lead to a lack of access to basic services like healthcare and education, as the government is forced to cut spending in these areas.
The impact of economic hitmen can also be felt globally, as the debt crisis in one country can have a ripple effect on the global economy. For example, the debt crisis in Greece in 2015 had a significant impact on the European economy, and the debt crisis in Argentina in 2001 had a significant impact on the global economy.
Future Implications
The use of economic hitmen is a major concern for the global economy, as it can lead to debt crises, poverty, and inequality. To prevent this, it is essential to:
- Regulate the activities of economic hitmen: Governments and international organizations must regulate the activities of economic hitmen to prevent them from using corrupt and exploitative methods to achieve their goals.
- Provide alternative forms of financing: Developing countries must be provided with alternative forms of financing that are transparent, accountable, and do not lead to debt crises.
- Support sustainable development: Governments and international organizations must support sustainable development in developing countries, including investing in education, healthcare, and infrastructure.
By taking these steps, we can prevent the devastating consequences of economic hitmen and promote sustainable development and poverty reduction in developing countries.
What is an economic hitman?
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An economic hitman is a highly paid professional who uses their expertise in economics, finance, and politics to convince developing countries to accept large loans from institutions like the World Bank and the International Monetary Fund (IMF).
What are the methods used by economic hitmen?
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Economic hitmen use a variety of methods, including debt creation, corruption, manipulation of economic data, and threats and intimidation.
What are the consequences of the activities of economic hitmen?
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The consequences of the activities of economic hitmen can be devastating, including poverty, inequality, and lack of access to basic services like healthcare and education.
