GLOBAL SOLIDARITY: FOCUS CENTRAL AMERICA REPORT |
|
Mission Office Home PageGlobal Solidarity
|
PrefaceThe Global Solidarity: Focus Central America (GS:FCA) project group hopes that the publication of its report will accomplish two things: 1) that it will further education and reflection on this important subject, including an increased appreciation of how the lives of the people of America--South, Central and North--are becoming more strongly linked economically and culturally 2) That it will begin a process of engagement by the Church of Cincinnati in a series of advocacy and relationship-building efforts with and for the people of Central America It is our hope that through both of these approaches the Archdiocese of Cincinnati will strengthen its efforts to live out the Church's mission of global solidarity. Members of the GS:FCA group included people with extensive knowledge of the region, many of whom have been privileged to visit Central America. While our financial resources were limited, as was expertise in formal research, we submit the following with modesty as well as hope.
"We who have a voice must speak for the voiceless." --Archbishop Oscar Romero
TABLE OF CONTENTSGlobal Solidarity: Focus Central America Report – Introduction I. Commentary on History and Current Trends II. Some Major Themes III. Reflections on the Church in Central America IV. Conclusions and Recommendations
Global Solidarity: Focus Central America Final ReportIntroductionA number of related developments came together in the fall of 1998 to create the impetus for the Global Solidarity: Focus Central America project (GS:FCA). In the spring of 1998, a series of articles in the Cincinnati Enquirer called into question the integrity of business practices of Chiquita Brands International, one of many multinational corporations operating in Central America. Subsequent to these articles, the integrity of the Archdiocese of Cincinnati was questioned for its acceptance of a large financial contribution from Carl Lindner, Chairman of the Board of Chiquita Brands International. In light of the Catholic Church's social teachings and the above two scenarios, the Social Action and World Peace (SAWP) Commission and the Priests' Council determined that some fact-finding would be appropriate concerning the operations of Cincinnati multinational companies in Central America. The devastation caused by Hurricane Mitch in October 1998 dramatically raised awareness within the archdiocese about the human needs of Central America. This served as a second catalyst for the project. Third, during this period undocumented immigrants became a visible presence in several Cincinnati neighborhoods. In response the archdiocese, working with Cincinnati's Hispanic community, established Su Casa, the Archdiocesan Hispanic Ministry Center. This new outreach effort of the Church of Cincinnati served as a reminder of the growing connection between North and Central America. Finally, it was recognized that through the GS:FCA project, the archdiocese could mount a credible and timely response to the call made by the Pope and the U.S. Bishops to build bridges of solidarity with the developing world. This call was presented recently in John Paul II's Ecclesia in America, an outgrowth of the 1998 Synod for America. The Holy Father's apostolic exhortation invites the People of God in America--North, Central, and South--to encounter the living Jesus Christ through a process of conversion, communion and solidarity. To implement this endeavor a Global Solidarity: Focus Central America group was formed in December 1998. Group members are drawn from the SAWP Commission, the Priests' Council and the Archdiocesan Mission Office. In addition, the group has representatives from other Catholic institutions or organizations with a history of involvement in Central America, including Xavier University and the Intercommunity Justice and Peace Center. At its initial meeting the project group reached consensus on some overall directions: It would focus on issues of justice and of relationship-building with the Catholic Churches of the region. In addition, through its education and advocacy it would seek to foster a comprehensive understanding of the situation in Central America, including the very significant role the United States plays in the region. Furthermore, in response to the rebuilding challenges presented by Hurricane Mitch, it would encourage a process of restoration and renewal which seeks transformation--not just replacement of social, economic, and political structures. Guided by these understandings, the group developed a mission statement and devised a plan to implement the study effort. The mission statement is: To identify and work on selected justice issues of Central America in collaboration with the Catholic Churches of the region. To implement this mission Economic Transformation, Political and Cultural Transformation and Church subcommittees were formed. Each subcommittee has gathered and analyzed information relevant to its area of responsibility. The data have been further examined and discussed by the project group. The work of the total project has been summarized in the report and in the exhibits which follow. The information contained in the report section is organized into three parts: commentary on history and current trends, reflections on the Church of Central America and conclusions and recommendations. I. Commentary on History and Current TrendsA. Two StoriesBelize
|
Jose, Maria and their young son, Juan, escaped Hurricane Mitch in November. Because they were without a house and totally alone they began the long journey to the United States. In Belize they worked for a week and earned enough money to reach the capital of Mexico A kind woman, Carmen, gave them work and shelter for two weeks until they mustered up enough courage to cross the Rio Grande River into the United States They risked taking a bus to Denver, Colorado, and arrived without a single penny They were fortunate that Jose could speak English because border police came on board and asked many questions. Jose was able to disclose their identity and so they were not forced off the bus. Little Juan, after having been in the hurricane, was very frightened and so his parents left him behind in Mexico with Carmen¼
The conversation unfolded with Becky and the woman preparing corn for sale. Her children gathered around her, six little ones ranging in age from 10 to two. Her home, made of boards, looked sturdy enough. She cooked corn on the porch. We learned that she had borrowed funds to build this house. She now pays 300 lempira (about $21.00) a week to repay the loan. Three more months and she is done. I told the ninos (children) that they had a mama fuerte (strong mother). The boiling corn represented a second batch. She had already sold her first load. She seems determined to make it...
The U.S. Bishops' statement on "Global Solidarity: International Challenges for U S Parishes" states, "Our faith challenges us to reach out to those in need, to take on the global status quo and to resist the immorality of isolationism. Pope John Paul II reminds us that a turn to 'selfish isolation' would not only be a 'betrayal of humanity's legitimate expectations' but also a real desertion of a moral obligation."
Long before the Spanish conquest of present-day Central America in the early 1500’s, the Mayans had built a sophisticated civilization. However, this civilization had all but vanished by 900 A.D. Archaeologists theorize the demise was caused by many factors, the most logical being the exhaustion of the local environment, especially food production assets due to overpopulation.
During the colonial period in Central America (about 1500-1820), Spanish Conquistadors, and later imperial officials, extracted gold and other resources for their own and Spain's benefit. There was little concern to develop the economy for the needs of the local peoples. Colonial administrators, appointed through patronage, used their positions for personal gain. To the peasants and native workers the colonial Church preached submission and the Conquistadors relied on forced labor for their mines and haciendas.
Early 19th-century revolutions expelled the Spanish colonial rulers, but there was little change in the economic and social conditions for peasants and workers. In Guatemala, e.g., the native Indian populations remained at the bottom of the economic system while local elites took over political control. Unlike what occurred with the American Revolution, democratic political institutions did not emerge in Central America (e.g., competing political parties, honest elections, independent newspapers challenging the government). During the 19th century the region experienced considerable social unrest and civil wars. Economic dominance shifted from Spain to Britain and other outside interests.
In the 20th century the United States emerged as the dominant economic power in Central America by decisively defeating the Spanish in the Spanish American War (1898). American corporations substantially increased their investments in Central America. United Fruit (now Chiquita Brands International) developed large plantations in the region. The power of these corporations and the relative weakness of the host countries resulted in a reliance on one or two export crops or mineral exports rather than the development of more balanced economies.
During the early part of the 20th century there were frequent U.S. military interventions to support American economic interests. Later the approach shifted to indirect intervention, with the United States government providing military equipment and training or financial backing for Central American governments favorable to U S economic and political interests.
The U.S. government established the School for the Americas in the Panama Canal Zone in 1946 to provide military training for Latin American soldiers and civilians, in particular to oppose armed revolutionary or guerrilla movements. In 1984 the facility was moved to Fort Benning, Georgia. Since 1949 the School of the Americas has trained about 60,000 Latin American soldiers, 22,000 of them from Central America. Human rights groups charge that hundreds of those trained at the school have been involved in human rights atrocities throughout Latin America. The school produced training manuals that, critics say, show a blatant disregard for basic democratic government processes, civilian control over the military, respecting the activities of labor unions and non-profit and civic organizations. Meanwhile, the U.S. Department of Defense has maintained that the School of the Americas actually promotes human rights, democratic government and free trade as well as protecting U.S. economic interests in the region and promoting political stability.
During the Cold War period the United States government was strongly concerned about the spread of communism to Latin America. Its policies involved opposing political movements and governments that promoted greater economic equality and opportunities for the large masses of poor people, primarily because those movements were suspected of being infiltrated by communists.
In Guatemala the Central Intelligence Agency (CIA) engineered the overthrow in 1954 of President Jacobo Arbenz, who had been popularly elected in a relatively honest election. Arbenz sought economic reforms, such as buying unused land from United Fruit Corporation, to distribute to landless peasants. The CIA and United Fruit promoted a program of systematic slander to discredit President Arbenz, playing upon the American public's pervasive fears of communism. (See exhibit, "The Art of the Coup.") Up to the 1980's, the basic approach to Central America involved military and economic assistance to dictators friendly to U.S. interests and opposition to groups seeking major economic changes.
During the 1960's the United States government established the Alliance for Progress. Its purpose was to provide economic development and promote economic growth as a means of counteracting leftist movements. For the most part, the Alliance for Progress assumed there could be economic progress without fundamental changes in economic conditions such as a major land distribution.
During the Reagan administration in the 1980's, the U.S. government provided support to Central American governments that were opposing armed revolutionary movements seeking major economic changes. The administration gave considerable support to the contra rebels, who were committed to toppling the leftist Sandinista government in Nicaragua. Much of the rationale for this policy derived from the Rockefeller Report of 1968, which had stated that the only dependable allies for United States' economic and political goals in Latin America were governments controlled by the military. In El Salvador, the United States provided substantial military aid to the government which was fighting the guerrillas (1979-91) who opposed the alliance of military leaders and a tiny economic elite, estimated at 2% of the population controlled almost all the fertile land. Critics charge that death squads connected to the Salvadoran military murdered, raped, and tortured tens of thousands of civilians. A 1988 report from Amnesty International and previously classified CIA documents showed that death squads regularly included members of the government military and police agents.
Church workers in Central America--Catholics and members of other denominations--who advocated for the rights of the poor also became targets of military counterinsurgency actions. Victims include Archbishop Oscar Romero, assassinated in 1980, and six Jesuits, along with their housekeeper and her daughter, who were killed at the Catholic University of Central America in 1989. Salvadoran military squads murdered four women from the U.S. working to aid the poor: Maryknoll Sisters Ita Ford and Maura Clarke, Ursuline Sister Dorothy Kazel, and lay missionary Jean Donovan. The victims also included over 20 religious workers and hundreds of catechists. The Bible, particularly when used in Christian base communities, came to be considered subversive by certain elements in the Salvadoran military.
In 1992 negotiations conducted by the United Nations resulted in the signing of peace accords between the Salvadoran government and the guerrillas. The accords contained specific provisions to change the military, political systems and the police but did not contain provisions to change the country's economic or social systems. The accords also established a UN Truth Commission to investigate human rights abuses during the civil war period. The Truth Commission concluded that the Salvadoran government bore responsibility for the vast majority of deaths and human rights violations. The Commission report and records from the U.S. School of the Americas found that the graduates of this military training school were strategically involved in many of the deaths. At least five graduates are linked to the deaths of the four U.S. churchwomen (some helped plan the murders, some ordered them to be carried out); other graduates include two of the three officers cited in the assassination of Archbishop Romero; 19 of the 26 Salvadoran Army officers responsible the 1989 killings of the Jesuits and their co-workers; and 10 of the 12 persons cited as responsible for a 1981 massacre of over 900 men, women and children.
In Guatemala government counterinsurgency actions resulted in the destruction of hundreds of peasant villages, with peasants corralled into "model villages." The 36-year civil war that extended into the 1980's resulted, according to a recent U.N. investigation, in a death toll of over 200,000. In Honduras, the United States provided increased military aid to use the country as a staging area for U.S.-supported contras to attack the Sandinista government of Nicaragua. During the 1980's there were increased assassinations and detentions linked to the Honduran military.
The four Central American countries in this study experience widespread, severe poverty as well as substantial economic inequality:
In El Salvador the wealthiest one fifth of the population receives 66% of the total national income, while the poorest one fifth receives only 4%. Twenty-three percent of the children lack adequate nutrition. Fifty-three percent of the people do not have access to safe drinking water, while 42% lack access to sanitary services.
In Honduras the richest fifth of the population receives 56% of the national income, while the poorest fifth receives only 3.5%. Thirty-eight percent of the people do not have access to adequate health services, and more than one half of them lack access to safe drinking water.
In Guatemala 62% of housing lacks a potable water supply, and 59% lacks a sanitation or drainage system. Over three fourths of the children are malnourished.
In Nicaragua 44% of the population survives on less than $1 per day; 20% of the children are malnourished. Three fourths of the population does not have adequate sanitation services.
The economies of these four countries in Central America are closely linked to the United States According to U.S. State Department statistics, El Salvador sends 49% of its exports here and receives 51 % of its imports from the U.S.; for Guatemala, the figures are 31 % and 44%; for Honduras, 53% and 43%; for Nicaragua, 43% and 32%.
In the fall of 1998, Hurricane Mitch dealt a heavy blow to the economies and the disadvantaged people of Central America. Eighty per cent of the banana crops for export were lost in Honduras and Guatemala. In Honduras reports indicate that over 50% of the agricultural production and infrastructure were completely destroyed or severely damaged.
In addition to severe crop losses, Hurricane Mitch severely disrupted or destroyed much of the transportation, communication and utility infrastructures needed for sustained economic development. According to Honduran officials, Mitch destroyed 70% of the country's bridges. It is estimated that up to 90% of the Honduran transportation and communication infrastructures were severely damaged or destroyed. A Nicaraguan coffee grower noted that people in his area ran the risk of losing half their crop because of the lack of fuel or roads. In Guatemala ruined bridges made inaccessible the main port for coffee exports.
The damage from Hurricane Mitch to agriculture has brought consequences to the economic and social life of the countries. This is due to the fact that large segments of their populations are dependent on agricultural employment for their livelihoods. For example, in Honduras agriculture accounts for 66% of the jobs; in Nicaragua the figure is over 40%
Hurricane Mitch hit the poorest segments of the population in these four Central American countries. Mitch's impact was complicated by the links between poverty, the environment and deficient planning. Because of prolonged civil conflicts, restricted land rights, adverse climatic conditions, etc., small farmers have been left to farm riverbank areas and hillsides. Cultivation of these marginal lands by the poor, along with large-scale deforestation that has not included any attempt to conserve the soil, produced these massive mudslides. A conference of specialists on the impact of Hurricane Mitch stated that the level of hurricane damage was "directly related" to the lack of environmental planning, deforestation and rapid population growth.
Even before Hurricane Mitch inflicted severe damage on the economies of the region, foreign debt payments were absorbing large proportions of government revenues in Nicaragua and Honduras. As a result, very limited resources are available to cover basic social needs or to expand educational opportunities, keys to raising living standards. Before Mitch hit, debt payments devoured 1/3 of government funds in Honduras. In Nicaragua, debt service payments amount to 2.5 times government spending on education and health services combined--or over 1/2 of total government revenue.
Those favoring substantial debt relief state that heavy debt burdens which reduce public funds for internal infrastructure improvement discourage foreign investment for development. Debt relief could mean more funding for greatly needed human services, including education and the social service needs of women and children. Such debt relief would cost little to major creditor nations--the U S. and others-considering their total economic output and the size of their economies. Archbishop Oscar Andres Rodriguez of Honduras has said that canceling his country's foreign debt may be economically or politically difficult but it has to be done for moral and humanitarian reasons. The Archbishop, in conversations with members of the GS:FCA project group, offered the example of an electrical generating plant that cost $70 million to build. Honduras thus far has paid back $290 million and still has not paid any on principle.
Another concern is the impact of forgiveness and debt relief on the individual level. Middle-class shop owners and farmers face heavy debts. The economic viability of these groups is crucial to future economic development and political stability. This problem deserves attention.
To promote rapid economic recovery from Hurricane Mitch and long-term improvement in standards of living, international relief agencies are urging that the International Monetary Fund (IMF) and the World Bank declare an immediate moratorium on debt repayment and eventually cancel all or a very substantial part of the debt owed. The World Bank and the IMF have responded to the needs of the poorest countries of the world with the so-called HIPC framework (Heavily Indebted Poor Countries). It calls for reduced debts for the very poorest countries. Jubilee 2000, a worldwide group of charities and church organizations focusing on debt relief for poor countries, has expressed concern that HIPC does not move fast enough to deal with the needs of Nicaragua and Honduras. The HIPC framework says that a country must comply up to six years with IMF adjustment programs before it can become eligible for relief. Under these standards, Nicaragua could not begin to experience relief until 2002 (Honduras, even longer). Meanwhile, Nicaragua's poverty is on the upswing as utility rates rise and layoffs in public employment increase.
However, calls for outright full cancellation of debts for Nicaragua and Honduras raise some serious questions about where to draw the line. What about "good" countries that are making strong efforts to work their way out of debt? The World Bank has said that it would be unfair, impossible and ultimately irresponsible to fully cancel such debts because other developing countries have had to deal with such shocks without benefit of debt cancellation. In November 1998 Michel Camedessus, the chief of the IMF, proposed forgiving 80% of the debts owed by Nicaragua and Honduras. But there is some resistance from international leaders, who believe that such as proposal would set a dangerous precedent.
In response to calls for debt relief, the leaders of the eight largest industrial countries (the G-8), at their annual summit June 18-20, 1999, in Cologne, Germany, decided to provide deeper debt relief to the most heavily indebted countries of the world. Honduras could receive additional debt forgiveness. U.S. Catholics and Latin American bishops, led by Archbishop Rodriguez and Jubilee 2000, exerted considerable pressure to bring about these changes.
In aiding the recovery from Hurricane Mitch there is a need to insure that assistance is not used to create structures that perpetuate existing economic inequalities. Recent United States foreign aid and multilateral aid have promoted export development, while 3/4 of the people in Central America have remained desperately poor. In Honduras there is a concern that Chiquita Brands International, in rebuilding its plantations, may plant substitute crops which require far fewer workers. Rebuilding efforts are producing modern stores and upscale boutiques in Managua; meanwhile there have been harsh cutbacks in funding for education and public services, and unemployment and underemployment are on the rise.
Central American Bishops see a need to do more than just restore the previously existing economic system. They point to a number of unsolved problems such as land concentration in a few hands, environmental deterioration, the low value placed on human life and the burden of foreign debt.
Members of the Cincinnati community--including the Archdiocese, local parishes, congregations of men and women religious, Church groups and Chiquita Brands International--have responded to the devastation of Hurricane Mitch. More than $400,000 has been raised in the archdiocese through special collections in parishes and other appeals. Approximately one-half of the fund were channeled through Catholic Relief Services (CRS) and the other one-half given to our missionaries in Central America. In Honduras, CRS has developed a unique program that links dioceses in North America with Honduran dioceses for joint education and community development efforts. In our archdiocese local parishes have raised thousands of dollars for emergency relief for the reconstruction of houses destroyed and damaged by mudslides Chiquita Brands International has made direct donations and provided services to collect and transport the aid. Among Protestant groups, Matthew 25 Ministries in the Baptist community has provided aid to Nicaragua, and the Cincinnati Presbytery has aided recovery in Guatemala. A very extensive Methodist relief effort has been undertaken in Honduras. Shoulder to Shoulder, a project of the University of Cincinnati Medical School, has organized trips to the region to alleviate the health crises brought by Mitch
In January 1991 George Serrano succeeded Vinicio Cerezo as president in Guatemala. It was the first time in 51 years that one civilian elected government succeeded another. In 1994 the government signed a peace treaty with the guerrilla movement, and the guerrillas ran political candidates in elections the following year. In Honduras popularly elected civilian governments have administered the country since 1982. In El Salvador, when Jose Napoleon Duarte won election in 1984, he became the first freely elected president in over 50 years. In 1991 the government and the revolutionary forces in El Salvador signed a peace treaty that ended 12 years of civil war. These revolutionary forces went on to participate as a political party in the legislative assembly elections of 1994 and 1997.
In 1979 the leftist Sandinista revolution succeeded in ousting the Somoza dynasty that had dominated Nicaragua since 1936. In the early 1980's the Reagan Administration began providing assistance to the contra resistance movement which opposed the economic reforms of the Sandinistas. After a decade of civil war, the Sandinista government agreed, under intense pressure locally and abroad, to enter into peace negotiations with the contras The negotiations concluded in time for the February 1990 elections in which Nicaraguans elected Violeta Chamorro president in a vote judged free and fair by international observers.
Thus, all four countries have recently experienced the emergence of democratic processes. However, stable democratic forms so crucial for the long term have not become firmly rooted. This is especially so in comparison to the United States, Canada and Western European countries such as England or the Scandinavian countries. In these stable democracies there is a large middle class, with only a very small proportion of the population in extreme poverty. Also, these democracies have a well developed system of non-governmental organizations (NGOs) which represent and link the population to all levels of government. These structures are considerably less developed in Central America. Also, the extensive disruption, damage to the agricultural sector and loss of jobs caused by Hurricane Mitch could seriously threaten these developments if resources for recovery and reconstruction efforts are not sufficient and timely.
In Honduras there has been a large increase in the number of NGOs through funding by the United States government's Agency for International Development (AID) and various international organizations. Some groups in Honduras say that AID funding focuses on business organizations which emphasize export production, and largely excludes grassroots peasant organizations, more militant trade unions and human rights associations. These latter groups receive most of their funding from Europe. In Guatemala popular organizations representing the interests of low-income workers have emerged, but on the whole they have remained weak and fragmented, functioning without coherent programs for political and economic reform.
In recent months the United States government has been sending mixed signals about future policies towards Central America. On his trip to Central America earlier this year, President Clinton apologized for U.S. military support during the 1980's of Guatemalan military forces who engaged in violence and widespread repression. There is increasing recognition by U.S. policy makers that labor organizations and peasant organizations have important roles in orderly development of the region. The United States is moving ahead with plans to turn over control of the Panama Canal to Panama. Also, the U.S government has greatly reduced the level of military aid to Central American governments. At the same time, President Clinton recently lifted the ban against selling advanced military systems to Latin America, a move which may stimulate an arms race in the region. In addition the United States is continuing to provide military aid and training for soldiers in Latin American countries fighting internal rebellions in Colombia, Mexico and elsewhere, and the U.S. government is building a new training facility for Latin American soldiers in Puerto Rico.
In terms of economic policy the U.S. government strongly supports removing trade barriers between countries of the region. In addition, the United States remains strongly committed to structural adjustments that reduce government roles in the economy. For example, in Honduras the government is being encouraged to privatize government-owned economic assets such as utilities and airports and eliminate budget deficits. A critical consequence of these budget pressures is the significant reduction in public services with dire consequences to the poor, particularly in education and health care.
Although peasant and rural agricultural workers have formed many groups in Honduras, the splintering between and among them continues to hinder effective organizing. The strength of popular organizations there has been limited by shortsighted, opportunistic entanglements involving political parties, government, the military and foreign funding organizations. New efforts following the hurricane have been initiated to build an independent social coalition. Promising results in Honduras have been forthcoming, including a commitment by the government to dialogue and inclusive decision-making with this coalition. However, unified action has been difficult to achieve in Central America given the diversity of the groups.
In Guatemala unionized labor has experienced a series of setbacks as well as successes in recent years. However, these groups have recently increased political activity in response to increased pressure on their lands from commercial agriculture and the refusal of the government to support Indian land claims. The 1996 peace agreement between the government and major rebel groups set forth rights for indigenous peoples.
Out of this recent activity has come a more comprehensive recognition of the many problems facing these countries. From pervasive poverty and past political repression comes violence, often in the form of youth gangs and family violence. The long-term patterns of political corruption ingrained into the culture produce attitudes of fatalism and pessimism. Workers still experience low wages, and unions are weak. Because of population pressures the environment is challenged, with rural peoples cutting down forests for land and to feed their families. In the process, natural habitats are damaged and there is increased risk for serious floods--the very kind that occurred with Hurricane Mitch. The heavy debt burdens of Honduras and Nicaragua leave few resources for the governments to expand badly needed education and health-care services. Rapid population growth in rural areas has resulted in large migrations to urban areas where large masses face unemployment and severe poverty. All these social changes have in turn disrupted traditional family relations and family support systems. Hence, effective approaches to aiding these countries must be comprehensive in scope, not just narrowly focused on political or economic concerns.
The term globalization is usually discussed in the context of economic globalization. Economist Lee Tavis has written:
The process that has come to be called globalization is the integration of economic activity across the world. It involves an unparalleled movement not only of capital but of goods and services, technologies and even people. The globalization of recent decades is an organic integration in contrast to the colonialism and international trade of earlier periods. It is driven by a complex of interrelated factors such as intense global competition; the technologies of communications, transportation and production; the opening of markets in the developing countries; and the implosion of the former Soviet Union.
Pope John Paul II, however, in his 1999 apostolic exhortation Ecclesia in America, adds the cultural dimension to the definition of globalization:
| And what should we say about the cultural globalization produced by the power of the media? Everywhere the media imposes new scales of values which are often arbitrary and basically materialistic, in the face of which it is difficult to maintain a lively commitment to the values of the Gospel. |
This economic globalization is a relatively recent phenomenon and still in its early stages. The pace and extent of change associated with it have the appearance of being more than just evolutionary. Many have described one of its foundations, the rapidly changing technologies of the "information age," as truly revolutionary for the world economy. Comparisons are being made with the Industrial Revolution in the latter 19th and early 20th centuries that transformed the current First World economies from agricultural-based to industrial manufacturing-based.
In terms of economic growth indicators such as gross domestic product and per capita income, global integration has been positive for most developing countries, including those of Latin America, over the past 30 years. However, over the same period the dispersion of incomes between the highest and lowest income groups has increased. (However, the "poorest of the poor" proportion of the world's population, i.e., those earning less than $1 per day, has actually seen a slight decrease ) For the current First World economies, the Industrial Revolution eventually resulted in substantial economic growth along with a significant reduction in income disparity as seen in the emergence of a new and relatively large middle class. Most countries of the First World had democratic institutions and a culture that valued universal education; the result was a much more educated general populace in subsequent generations. This ability to commit adequate public and private resources to education and other social services was a key to the relatively positive economic outcome associated with the industrial age. For the current Third World economies coping with the current economic transformation caused by globalization and the rapid movement to the information age, international debt burdens have become large obstacles to their ability to provide adequate national resources so that they may see a similar positive long-term outcome.
In his report on the Synod for America Pope John Paul II does acknowledge the positive side of globalization, but he expresses concerns about the negative aspects that have also appeared during these early stages. Among these, in the pope's eyes, are unemployment, the reduction and deterioration of public services and the destruction of the environment and natural resources--all of which have been occurring in varying degrees in most of Central America. According to the pope, these negative consequences follow when globalization is ruled (only) by the laws of the market applied to suit the powerful. The new scales of cultural values are basically materialistic and are devoid of moral points of reference. The result is an unbridled greed for wealth and power, which obscures any Gospel-based vision of social reality.
The term neoliberalism is not used much in the United States. However, it is the predominant economic philosophy under which the current economic globalization is occurring. It refers to a market-based economy that is "liberated" from most, if not all, government restraints. In addition to a much lower level of governmental economic activity, e.g., reduced government spending, neoliberalism includes strong support for free trade (i.e., no quotas or tariffs) and unrestricted flow of capital. Free trade agreements such as NAFTA (North America Free Trade Agreement), the Central American countries' common market and the proposal for expanding NAFTA to include the entire hemisphere of the Americas, are manifestations of neoliberalism .The net impact of the existing agreements is still not clear in light of their relatively recent implementations. Generally, both proponents and opponents of these agreements have used isolated economic data and/or only anecdotal evidence to support their positions. However, the general lack of specific provisions relating to the protection of workers' rights and the environment in these trade agreements has drawn substantial criticism from various quarters. The absence of such provisions raises serious ethical and moral concerns. In expressing their general concerns about the effects of globalization on individuals (while not specifically addressing free trade agreements), the Latin American Bishops and the pope have denounced the classical, unfettered form of "neoliberalism." In the same Synod for America report, Pope John Paul 11 says:
| More and more, in much of America, a system known as "neoliberalism" prevails; based on a purely economic conception of man, this system considers profit and the law of the market as its only parameters, to the detriment of the dignity of the respect due to individuals and peoples. At times this system has become the ideological justification for certain attitudes and behavior in the social and political spheres leading to the neglect of the weaker members of society. |
Global companies headquartered in the U.S. have had and continue to have significant involvement in Central America. For Cincinnatians this involvement is most obvious in staple goods we consume which are imported from Central America by prominent local companies: the bananas of Chiquita Brands International, the coffee (Folgers) of Procter & Gamble and numerous name brand apparel items sold by Federated Department Stores. Brief analyses of these three industries--bananas, coffee and garments--are included as exhibits to show the dominant position maintained by global companies in the production and distribution chains in these industries.
The attached industry analyses show that we are all inextricably intertwined with the people of Central America. Although production workers in Central America receive less than 5% of the retail price of the goods (and typically far less than that), 100% of these retail sales that sustain the system are under our control as individual consumers. Further, 100% of investment dollars are, in the final analysis, provided by individuals. The consumer and investor have ultimate control of these chains and the relationships within them.
Beyond our dollars we also supply our time and talent as workers, citizens and people of faith in support of the existing global system. Whether or not we work directly for a global corporation, we all support global companies and their workers through the goods and services that we provide to them and their workers. As citizens we have a large impact on Central America through our government's political and military policies and through international terms of trade and finance which we, more than any other country, heavily influence. Finally, whenever we are silent we each provide moral support for the existing global system, especially, in the case of the archdiocese and other non-profits when they accept donations from those who benefit directly or indirectly from the global system.
In Central America land ownership and use have been particularly important. Concentration of most of the best land in the hands of a few has, in the past, exacerbated discontent even to the point of armed revolution. Much of this prime agricultural land has been used either directly by global companies or by those who grow crops for export to global companies. As a result, some of these agricultural countries are no longer able to grow sufficient food for themselves and instead rely on imported food.
U.S. multinationals also market a wide range of goods to Central Americans. These include basic grains, movies, cigarettes, soft drinks, soaps, gasoline and armaments. A local example of this global reach is Procter & Gamble, which markets its goods in Central America and throughout the world and is among the 50 largest corporations that earn over half their revenues from non-domestic sales. Global companies also export capital goods and operating materials, supplies and some services into Central America to support the operation of both their own subsidiaries as well as those of other global and local companies.
As shown in the previous sections of this report, governmental corruption, military and economic oppression, poverty, inadequate education and economic and political exclusion had their roots in events and institutions that long predate the reign of current global companies. Today's companies operate in traditionally exploitative environments.
Relationships between global companies and Central Americans are bound by U.S. and Central American laws, some of which have been adopted through international labor, trade, and human rights treaties. U.S. laws rarely impact treatment of foreign workers. Central American laws which are supposed to protect workers--minimum wage, child labor, health and safety, right to organize--are in many cases inadequate and in most cases not enforced (see exhibit). For instance, the minimum wage in El Salvador is one third of what is calculated as necessary to sustain one individual. According to the Guatemala Workers Union UNSITRAGUA, a month's labor that consists of work days of 12 or more hours earns the average apparel worker between $99 and $ 114, well shy of the $ 193 per month needed to buy minimum basic family necessities. A study of the apparel industry in Guatemala concludes that labor laws are more often used by employers to keep unions from being recognized than protecting the organizing efforts of workers.
It is only in the last few years that some global companies who have been pressured by activists have come to accept some responsibility for the workers employed through intermediaries who make their products. This responsibility had been recognized by domestic companies in the farm worker battles such as those waged against Campbell, which did not deal directly with those picking the vegetables it purchased. This acceptance of responsibility by global companies is made more complex in cases where there are levels of intermediaries between the company and the worker and is particularly difficult in commodity markets such as coffee, where the importing company often does not know from which plantation its coffee comes.
Globalization under neoliberalism further increases the vulnerability of Central American workers in several ways. To come up with foreign exchange earnings which are desperately needed to service their foreign debt, national governments are forced to increase exports. To do so they compete against one another to attract foreign investment (e.g., assembly plants) by exempting companies from taxation, by blocking and/or preventing labor organizing.
Free trade is reducing tariff and duty restrictions, making it easier for global companies to actively seek countries with little labor protection in Central America and throughout the world. This serves as a disincentive to governments to have meaningfully enforced labor laws that would put their countries at a competitive disadvantage for attracting employers. It also serves as a disincentive for workers to organize their workplace for fear that it may be closed down and production moved to other plants (see Phillips Van Heusen exhibit) and to other countries.
In this environment the treatment of workers by global companies is left largely to market forces, prevalent labor practices and the discretion of the company. Unfortunately, in the global market the supply of unskilled workers exceeds the demand by about one billion, which creates a market wage below what sustains life and a tragic willingness among workers to accept inhumane working conditions. It is generally recognized that U.S. companies who directly employ workers in Central America provide above-average wages and working conditions and that, in general, Third World workers engaged in global industries fare better than those who are not. Further, U.S. companies have played positive roles in some important cases to support workers' rights, such as the Gap in El Salvador (see exhibit). However, there is evidence that in some cases global companies play an active role in limiting wages, benefits and workers' rights to organize and have actually depressed wages.
It is impossible to determine precisely if global companies play a net positive or a net negative role. The Church, especially in the Archdiocese of Cincinnati, must grapple with the consequences of current social structure to human dignity and the integrity of creation. But such a task is beyond the scope of this group. What is easier to judge is whether or not global companies meet the criteria of Catholic social teaching in their relationships with their workers, whether directly or indirectly employed. Though the investigative ability of this group is limited, it is clear that most global companies do not meet these standards.
The need to create corporate standards for corporate responsibility on a global scale is an issue to be considered. Global companies face unique challenges that go beyond their traditional business focus and guidelines. As they do business in diverse cultures and economic and political contexts, they need to address a variety of concerns. Among them are human rights, just wages and safe working conditions, child and forced labor, the environment and sustainable community development.
Because of these concerns, shareholders, consumers and concerned citizens need to call upon global companies to develop comprehensive codes of conduct, effectively monitored, to guide the formulation of policies, programs and practices. Such codes have been the focus of human rights and faith-based groups in recent years. Notable are the campaigns concerning the Gap; Starbucks regarding Guatemalan coffee workers; and the controversial Apparel Industry Partnership over which students have demonstrated on many college campuses this year. Locally, Procter & Gamble has recently adopted both the Global Sullivan Principles and a "sustainable development" strategy for its Global Business Units. In addition, Chiquita Brands is working to develop a credible code of conduct that is appropriate for this agricultural business.
The fair trade movement makes justice a real priority in our economic relationships. It was developed as an alternative for consumers and producers who wish to do something about the problem. For instance, in the coffee industry, U.S. fair trade firms purchase coffee from democratically run cooperatives at a guaranteed minimum price which protects workers from the vagaries of the international commodity market. The fair trade organizations set the standards.
Socially responsible investing is another approach to reform economic systems and influence corporate behavior. We who benefit from ownership of common stock--individual and institutional investors, the archdiocese itself--have an obligation to call for change where practices are not in accord with Catholic social teaching.
Broader questions about the role of corporations and the structure of society must also be addressed. Corporations have existed for a relatively brief time, and it seems prudent to fundamentally review their role, although they are beyond the scope of this group they must be mentioned here because their implications are potentially even more profound:
| Corporations are currently controlled by the stock market, which demands continual growth and short- term profit. Are these compatible entities in a physically limited world? What are the current practices in today's corporations and enterprises that are wholly consistent with Catholic social teaching? Which can be held up by the archdiocese and supported through socially responsible or alternative investments? The role of corporations has been constantly changing since their inception in England 400 years ago, and they have accumulated more rights and power then ever before. Do they wield too much power with too much impunity? (See exhibit on history of corporations.) |
| Although Pope John Paul II says that globalization is neither good nor bad, it does complicate social relationships, and in some ways moves us further from those who provide us with our goods and services. As currently being conducted under the doctrine of neoliberalism, globalization also has encouraged the concentration of wealth and power. Is this intrinsically at odds with a simple lifestyle (which Pope John Paul II calls us to in Ecclesia in America) and a more intimate community that we know is conducive to the spiritual life? Does the scale of operation required by global companies inherently contradict the concept of subsidiary? |
| Do corporate influences through the media (via advertising and ownership of the media) promote consumerism? Do they tend to portray life and others as commodities and unduly dominate public debate? |
Although many of these ideas apply to most of the Latin American countries, our focus is on Honduras, El Salvador, Nicaragua and Guatemala. Due to the diversity and contrasts in and among various countries, the problems are manifold. This is our humble effort to describe the role and situation of the Church in Central America.
According to Gary MacEoin, co-author of Puebla: A Church Being Born, "The Church in Central America has become central in the struggle of the people for justice and dignity. It is a Church that is being born in suffering and yet, a Church that offers hope to all." As is evident from the documents which emerged out of Latin America from 1962 to 1980, many priests and religious, lay men and lay women of the Latin American churches had identified with the poor to develop a "liberating theology" for the social and political injustices heaped upon the masses. The hopes of the masses had always been sustained by their devotion to Mary, symbolized by Our Lady of Guadalupe. What has happened to the prophetic stance of the Church in the past years? Several developments have arisen to cause elements of change with regard to the position of the Church in Central America today.
Power Shift: In many countries, military dictatorships have given way to governments with some levels of democracy. Thanks in part to many Church leaders and members who have taken seriously the "option for the poor," political environments have caused leaders and people to think and work differently for change. But for a few exceptions, governments in Central America have had only a limited experience of democracy. A government based on "people power" needs education, training and experience. These elements cannot be provided quickly. Corruption of leaders is one of the foremost problems in the governments of Central America that struggle for competing needs with few resources.
In the past, the military and the Catholic Church were the two strong national institutions of significance in the country. Although their influence has diminished, they still have national implications. We do not have leaders like Archbishop Oscar Romero on the front pages of the newspapers, but the voices of the people have found other ways to express themselves. Martyrs were created by military dictatorships, lessening the number of strong Church leaders to preach the kingdom of God on earth.
Spirituality Shift: The Catholic Church of colonial times did not focus largely on material development but on spiritual development. In Central America the reach of the Church was limited, catechetical programs were relatively underdeveloped and there were too few indigenous priests. When Pope John XXIII called for a new initiative by the universal Church in evangelizing the Catholic people of Central and South America, many people responded from both North America and Europe. Because of the Basic Christian Communities' commitment to studying and acting on Scripture, "liberation theology" brought about a new awareness on the part of the Church leaders and the people that a just and free environment was essential for spiritual growth.
"And if the solution-or gradual solution-of the social question, which keeps coming up and becomes ever more complex, must be sought in the direction of 'making life more human,' then the key, namely human work, acquires fundamental and decisive importance (On Human Work, encyclical of Pope John Paul II). "The following duties...concern rich men and employers: Workers are not to be treated as slaves; justice demands that the dignity of human personality be respected in them, ennobled as it has been through what we call the Christian character...Among the most important duties of employers the principal one is to give every worker what is justly due him" (Rerum Novarum, Pope Leo XIII, 1891).
Liberation theology was based on the concept that attitudes of the people needed to be tested and changed, and it is only through a deep understanding of, knowledge of and commitment to Jesus that such transformation will take place. This kind of transformation needs the leadership of priests, religious and lay persons to mission to the people of Latin America. This work of transformation continues today as base communities are formed and effective catechetical and pastoral programs are initiated. If Catholic missionary work does not continue, Latin America could succumb to the evangelization of fundamentalist churches. The social environment of the people provides fertile ground for the voice of evangelical leaders who preach mainly about a faith in the paradise beyond. Fundamentalist churches are growing rapidly throughout Central America. There is a political backing for the churches on the part of the United States and of some Latin American governments which translate into money to provide modern technical equipment for evangelization.
The 1968 Rockefeller Report, written for the Nixon Administration, indicated that the U.S. government could no longer count on the support of the workers, students, professors and even the Catholic Church to be on the side of the powerful and wealthy. It was only the military that could be trusted. For this reason, aid to the military was increased. It was this same year that the Latin American Bishops met in Colombia to draw up the Medellin documents where the Church made a clear shift in policy to support the poor: the origins of liberation theology.
In the Jubilee Year 2000, Pope John Paul II is challenging the bishops and people of both hemispheres through his prayers, travels, speeches and documents to reflect on America "as a single entity." Ecclesia in America, delivered by the Holy Father to the entire American hemisphere in Mexico in January 1999 as the fruit of the month-long Synod for America celebrated in Rome in 1997, becomes a call to action. Likewise, the U.S. Bishops' Statement, Called to Global Solidarity: International Challenges for U.S. Parishes, demands a new mentality of solidarity in prayer, worship, preaching, teaching, living, investing in stewardship, practicing in outreach and promoting in advocacy and political responsibility. The bishops write: "As Catholics, we have been given the great gift of universality of the Church and yet our parishes often act as islands of local religious activity rather than as parts of the mystical body of Christ."
In their statement on global solidarity, the bishops commend U.S. Catholics for their contributions to countless international charitable organizations such as Catholic Relief Services, but they are asking us for more. They are calling us to be stewards of our time, our energy, and our entire lives.
What is the role of the Catholic Church and, specifically, the Church of the Archdiocese of Cincinnati, in its "encounter with the living Jesus Christ: the way to conversion, communion and solidarity in America" (Ecclesia in America)? With the work of the Spirit alive in our hearts and minds, we offer a few proposals on which to begin the task for a "new evangelization " in America.
Very difficult challenges confront the Church in the Americas. The catechetical and pastoral needs of the Catholic Church in Central America are extensive while the resources needed to address them are very limited. Extreme poverty oppresses over 60% of the population of the region. This means that a substantial majority is not able to meet their basic needs for food, shelter, health care, and education. Outside influences including religious groups, global corporations, and United States political and military interests often fail to consider the best interests of Central America when they make decisions which significantly affect the countries of the region. Addressing these realities has become much more difficult because of the extraordinary destruction of Hurricane Mitch which devastated the area in October of 1998.
Simultaneously, however, hopeful stirrings and exciting opportunities can be discerned in Central America. For example, the civic society, made up of various non-governmental community, occupational, and environmental groups is experiencing a rebirth. The Catholic Church in many parts of the region is contributing its particular gifts of community formation and social and spiritual discernment to this revitalization. The newly developing democratic institutions in Central America are in some instances supporting this movement along with enlightened foreign relief and development organizations.
Tackling these challenges and seizing these opportunities is significantly complicated by globalization, the integration of economic and cultural activity across the world. Global systems such as the World Bank and the entertainment industry, which shape and guide globalization, receive their values and priorities from the developed industrial countries, especially the United States. These values, emphasizing economic productivity and efficiency, individual consumer satisfaction, and the free exchange of information, often conflict with or overwhelm local business arrangements and traditional cultural patterns. Furthermore, at times important human values are disregarded. For example, no international consensus exists to enforce minimum standards of human dignity in the workplace. Because of this complexity, effective reform will require careful study of these systems in order to discern how best to influence them. In addition, priority must be given to study and action strategies which emphasize collaboration with those who are most vulnerable.
As representatives of the Church of Cincinnati and as citizens of the U.S. we believe we have an obligation and an opportunity to address these challenges and to participate in this transformation. Our resolve is based upon a recognition of how our individual choices as consumer, investor, and voter affect the people of Central America. Our actions in these various roles do indeed have profound consequences. Furthermore, as persons of faith we take to heart the proclamation of the Holy Father that the Year 2000 will be a year of Jubilee, a year in which forgiveness and reconciliation, freedom and renewal become catalysts for action as well as themes for prayer. At the center must be commitment to a conversion which frees us from self-absorption and opens us to authentic solidarity.
In response to the Call to Global Solidarity we recommend that the Archdiocese of Cincinnati commit itself to a five-year comprehensive effort focused on Central America.
Building on the strengths of the Church in all of America, launch a process of moral education, liturgical celebration, prayer and discernment, and action for justice. This process would be centered on and guided by the themes articulated in Ecclesia in America. It would be aimed at all levels of the Church in Cincinnati and would be initiated by a Pastoral Letter from the Archbishop.
A goal is for the Archdiocese to develop expertise and relationships with the vulnerable and their advocates in the Churches in Central America so that the Archdiocese can serve as leaven on international economic, political, and racial justice issues.
Support Global Solidarity with Central America through development of materials, by infusion of the theme into ongoing Archdiocesan activity, and where appropriate by undertaking special programs.
Convene knowledgeable representatives of Catholic universities and colleges within the Archdiocese to examine and discuss further the challenges and opportunities presented in this report. Involve Central America advocates for the vulnerable in this endeavor.
Establish the requirement that all candidates for ordination and all lay pastoral ministry students must participate in meaningful cross-cultural experiences.
Carry out advocacy efforts on issues which affect the poor of Central America. These presently include:
Participate in efforts aimed at reducing the debt owed by Central American countries in the region. Support advocacy for H.R. 1095 as well as other appropriate legislation in the future.
Work to insure that U.S. foreign/military policy shifts firmly toward respect for civilian rule, support for democracy, and protection of human rights. One way to demonstrate that the U.S. is seeking to begin a new relationship would be the closing of the School of Americas.
Urge U.S. Government and American Corporations with economic interests in Central America to uphold workers’ right to organize unions and to participate in collective bargaining in order to improve wages and working conditions. Free trade agreements should incorporate into the central text of the agreements these kind of worker rights provisions as well as environmental safeguards.
Reactivate participation in the Inter-Faith Center on Corporate Responsibility (ICCR).
Review Archdiocesan investments in corporations with a major presence in Central America. Examine contribution and purchasing policies; e.g., support "fair trade" organizations.
Encourage twinning of parishes with parishes or mission projects in Central America. Seek to incorporate justice and an appreciation of the new evangelization in these relationships building efforts.
Develop and provide global solidarity resources for moral education, liturgy, prayer and discernment, and action for justice at the parish level.
Communicate advocacy positions to parishes and encourage action follow through as well as integration of global solidarity into the agenda of parish justice and peace groups.
Encourage parishes to develop relationships with the Hispanic Ministry Center, Su Casa.
Form an Implementation Committee to move these recommendations forward.
REFERENCES
Barry, Tom. Inside Guatemala. Albuquerque: Inter-Hemispheric Education Resource Center, 1992. Economic conditions-inequality, democratic developments-government, U.S. foreign policy
Catholic Telegraph , "After Mitch Bishops Urge More Than Simple Reconstruction," Dec. 11, 1998, p. 10. Need for social reforms to remedy past severe inequalities.
Episcopal Church, Government Relations Office, "Debt Burden on Impoverished Countries", Washington, DC, 1998. Negative impact of heavy debt burden, on social welfare, environment, debt relief--Jubilee Year-2000.
Hennelly, Alfred (ed.). Liberation Theology: A Documentary History. MaryKnoll, NY: Orbis Books, 1990.
LaFeber, Walter. Inevitable Revolutions. New York: Norton. 1993. How colonial legacy, U.S. foreign and economic policy is producing current inequalities and political turmoil.
McGlone, Mary (CSJ for the NCCB Committee on the Church in Latin America). Sharing the Faith , Across the Hemisphere. United States Catholic Conference, 1997.
Murray, Kevin with Tom Barry. Inside El Salvador. Albuquerque: Resource Center Press, 1995. Economic conditions-inequality, democratic developments-government, U.S. foreign policy, military
Norsworthy, Kent with Tom Barry. Inside Honduras. Albuquerque: Resource Center Press, 1994. Economic conditions-inequality, democratic developments-government, U.S. foreign policy.
Oxfam International. Internet. Impact of Hurricane Mitch on the poor of Central America. Effects of foreign debt on social welfare developments. Calls for debt forgiveness, reduction.
Political Risk Yearbook North and Central America. New York. Frost and Sullivan. Economic and political conditions, statistics and developments, by country.
Pope John Paul II, Post-Synodal Exhortation "Ecclesia in America," Mexico City, Jan. 22, 1999, Ch. II: "Encountering Jesus Christ in America Today," Ch. V: "The Path to Solidarity---Social Sins Which Cry to Heaven."
Stein, Stanley and B. Stein, Colonial Heritage of Latin America, New York: Oxford Press, 1970. Perpetuations of colonial institutions that still affect social and political conditions.
Tavis, Lee. "The Globalization Phenomenon and Multinational Corporate Developmental Responsibility," July 28, 1998, p. 1-2.
United Nations Food and Agricultural Organization, "Countries hit by Hurricane 'Mitch' on Long Road to Recovery, " internet, 1999. Hurricane Mitch impact on the poor and environment
United States Dept. of State. Background Notes: El Salvador, Mar., 1998 Background Notes: Honduras, Mar., 1998.
U.S. Bishops. Global Solidarity: International Challenges for U.S. Parishes, Church teachings and global economy and poor nations, and responsibilities of those in prosperous country to the rest of the world.
United Nations Truth Commission Report on El Salvador, March, 1993.
School of the Americas Watch – Internet Site: www.soaw.org/grads/elsal-not.html
UNIONIZATION
In Honduras (about 15% labor force organized), unions have been able to establish a progressive labor code and minimum wage, through legislation, but enforcement has been weak, along with internal union leadership conflicts, efforts by corporations to fire militant workers and set up "worker-owner associations", which provide no collective bargaining or grievance rights. In El Salvador, labor unions have had little success in opposing the massive movement towards privatization, with only a small fraction of the labor force organized, over half of the labor force is without regular employment and the resounding victories of the conservative Arena party, in national elections. In Guatemala, with a large pool of cheap labor, resort to often violent union-busting tactics by employers, very few workers are organizing, almost none in the booming maquilla sector.