Bananas that Impoveris

Over the past 100 years Costa Rica has produced bananas. During this period, the country has generated much wealth for, while at the same time been exploited by, transnational banana companies. Costa Ricans have listened, over and over again, to the companies´ threats that they will move production to another country, a country where they can expand and increase profits.

What has been the true cost of banana production in Costa Rica over the past 100 years? What has been the real cost for the workers that have been exploited? What has been the cost to communities contaminated and submerged in and endless cycle of poverty, sexual exploitation and alcoholism?

If we take one look at the Atlantic banana producing zone of Costa Rica, we find a poor region, exploited and used to generate wealth for foreign and national companies. The reality is that little of this wealth stays in the region.

Transnationals are responsible for more than 80% of banana exports. The total volume of bananas exported went from 115.8 million boxes in 1998 to 116.5 million boxes in 1999, with a total value of US$631 and US$642 million for thes same years respectively.

Bananas constitute one of the primary agricultural exports and one of the most important exports for the national economy. Even though there has been an increase in the participation of other companies in the industry, the marketing has continued to be controlled by the same three transnational corporations that control 80% of the total exports.

With the transnationals controlling and defining this industry, it is difficult for the producing regions to economically develop, especially when the companies exploit workers and the land, and remove most of the wealth generated.

In 1999, seven major banana producing municipalities in the Atlantic region earned a total of 255 million dollars from banana sales, representing 1% of the gross production value.

The money earned does not go directly to the municipality. It first goes to the central government and then the municipalities must fight for their share. It must be made clear that with this distribution system, little of this money actually reaches the production regions.

Some payments do remain within the communities, including salaries and worker earnings. In 1998, this amount was calculated to be approximately US $11million, or 24% of the gross production value.

Society as a whole, through what is collected by the Central Government, receives 4% of the wealth generated by banana production. The communities of the banana producing zones receive 29%. More than 300,000 workers receive only 18% more than the major producing companies.

The great wealth created by banana production is distributed unequally between those involved in the production process. We have calculated that, conservatively, the banana companies receive an amount at least equal to that which all plantation workers receive in salaries and benefits.

Different governments have stimulated banana production without trying to modify the unequal distribution system. In reality, they have reinforced this system through production incentives and their lack of enforcement of labor and social laws designed to protect workers and citizens.

The majority of the banana producing counties have a level of social development lower than that of other counties in Costa Rica. This shows, without a doubt, that the extractive and enclave system of the banana economy has not returned to the producing regions all of the wealth generated over its 100 years of existence.

The Foro Emaús believes that the inequality and the injustice of the enclave banana economy must be changed. This is our land, our country, our region. The companies can leave at any moment, like they have done in other regions. Knowing this relity, is important that we all work for an equal and just distribution of the wealth produced by bananas.

In 1989, a prophetic message regarding this situation was issued in a Pastoral Charter of the Archbishop of Limon. This message, told us: “The economy must benefit man, not man the economy”. Economic activities should not be used as tools to deprive people of their human rights as is being done in banana producing zones. Placing real value on our national and personal sovereignty will be the only way to avoid sinking further into this exploitative and unjust situation.

<< back