Confessions of an Economic Hit Man

Prologue

Overview of Quito and Shell

  • Location and Geography

    • Quito, the capital of Ecuador, is situated at a high altitude of nine thousand feet in a volcanic valley within the Andes Mountains.

    • The nearby city of Shell, a military base and oil company outpost, lies nearly eight thousand feet lower than Quito.

  • Cultural and Environmental Landscape

    • Quito was established long before Columbus arrived in the Americas and is known for its snow-covered peaks despite its proximity to the equator.

    • The journey from Quito to Shell is described as tortuous yet breathtaking, showcasing a variety of natural landscapes, including sheer cliffs, waterfalls, and biodiversity, notably the Pastaza River, which flows from glaciers of Cotopaxi—one of the highest active volcanoes.

The Journey to Meeting the Indigenous Tribes

  • Personal Mission

    • The narrator recalls a specific trip in 2003 to Shell, intending to meet the Shuar, Kichwa, and neighboring tribes fighting to protect their land from oil companies, a war mostly unknown outside Ecuador.

    • The conflict is framed as a struggle between cultural survival for the tribes and power and economic interests for the corporations and government.

  • Concept of Economic Hit Men (EHMs)

    • EHMs are described as elite individuals working to establish a global empire using financial tools to subjugate other nations.

    • EHMs facilitate loans for infrastructure development that benefit U.S. corporations while burdening the recipient countries with debt.

    • Loans force recipient nations to rely on U.S. companies for project completion, ensuring that money remains within the U.S. economy.

Economic Manipulation and Consequences

  • Debt and Control

    • Loans provided are often too large, leading countries to default, which results in loss of sovereignty over resources and policies.

    • The process can involve gaining control over international votes, establishing military bases, or accessing valuable resources.

  • The Cycle of Debt

    • As countries default, they become entrenched within a cycle of debt perpetuated by continued economic exploitation.

Historical Context of Ecuador

  • Personal Reflection

    • The narrator reflects on their initial perception of Ecuador during their first visit 35 years prior, contrasting it with the current situation marred by environmental degradation due to oil exploration.

    • Describes environmental damage as catastrophic—over half a million barrels of oil spilled and significant suffering among indigenous populations.

  • Lawsuits and Indigenous Resistance

    • In 2003, a lawsuit against ChevronTexaco claims that between 1971 and 1992, the company dumped toxic waste, causing health hazards to the local population and environment.

  • Statistical Overview

    • Since the 1970s, poverty levels surged from 50% to 70%, with underemployment rising to 70% and public debt skyrocketing from $240 million to $16 billion.

    • Allocation to the poor decreased drastically, from 20% to 6% of national resources.

Broader Implications of EHM Practices

  • Global Economic Trends

    • The debt in third-world countries totals over $2.5 trillion, with servicing costs exceeding $375 billion annually, surpassing spending on health and education.

    • A high concentration of wealth exists, where top 1% of third-world households control significant private financial resources.

  • Local Economic Effects in Ecuador

    • From oil extraction, only a minimal portion of revenue aids impoverished populations, reflecting systemic economic exploitation and oppression.

Visual Observations of Modern Development

  • Dramatic Imagery of Infrastructure

    • Describes the striking contrast between natural beauty and man-made structures, exemplified by the Agoyan hydroelectric project, which causes suffering for local indigenous populations.

    • The project symbolizes the misallocation of resources, benefiting a few at the expense of many.

Identity and Guilt of the Narrator

  • Personal Guilt and Reflection

    • The narrator contemplates their role and the implications of their work as an EHM, feeling overwhelming guilt for contributing to the destruction of Ecuadorian culture and environment.

    • Reflection on the evolution of modern empire-building tactics compared to historical colonial practices, emphasizing legitimate-looking but exploitative strategies.

  • Legacy of Violence and Failure

    • Mentions the potential rise of "jackals" who enact violence when EHMs fail to accomplish their goals, relating this to historical patterns of imperialism, thereby framing a complex narrative of economic and political manipulation.