I was reading up on my Dominican history recently - in particular the period from the assasination of the dictator Ulises "Lilis" Heureaux until the first US occupation (1899-1916).
Seems that ol' Lilis had secretly bankrupted the country before he was summarily dismissed from office with a bullet - courtesy of Sr. Cacares from Moca. He was taking loans in the name of the Dominican state from American and European banks for, essentially, the personal use of himself and his cronies. Lilis didn't see a problem with this and neither did the foreign banks. There was really no risk of default. As had become regular practice, the United States and/or European powers would send naval squadrons off the coast and demand to take over part or all of the Dominican customs regime (in essense, the revenues of the Dominican state) to ensure repayment by, essentially, paying themselves from the Treasury. (I'm reminded of Stalin's question: "How many [military] divisions does the Pope have? Apparently not as many as the Rockefellers, JP Morgans and Mellons.)
Subsequently, power shifted back and forth between the parties of the two primary caudillos, Horacio Vasquez and Juan Isidro Jimenez - both of which had no discernable political ideology. The interests of these two groups were purely the obtaining and maintaining power so as to provide patronage jobs and the lucrative control of the letting of "concessions" to foreign companies. These governments would occasionally borrow new money to pay themselves as well as the old debt. At one point, all foreign debt was consolidated into a single loan from the US - resulting in the DR becoming a virtual US protectorate.
The scoundrels in government continued to look for money from European sources, sounding alarm bells in Washington as the US entry into WWI approached. The United States Marines already occupied Haiti, so you can guess what happens next.
The similarities are astonishing, don't you think? A former president and his cronies that absconded everything. Non-ideological political parties fighting for money and power and nothing else. Foreign banks lending to government scoundrels - knowing that the money will be stolen - but also assured of repayment through the "big stick" (now the IMF), complacent in their part in the strangling of a poor country. Governments focused on debt reorganization (so they can borrow more) and the letting of foreign concessions (a personally lucrative business for politicos). US troops in Haiti.
The only difference is that now, instead of occupying the customs house or sending naval squandrons to ensure that the big banks get paid from the mouths of the poor, the IMF comes in as the big stick - threatening to toss the country from the world financial system or worse - and commands an austerity program. Same result, though: Half of government revenues go to pay Citibank, JPMorgan, BNP, Royal Bank, Banco Santander, etc., and poor Dominicans suffer through financial, tax and currency manipulations.
Now aren't you glad all of your countries continue to play a part in this.
Seems that ol' Lilis had secretly bankrupted the country before he was summarily dismissed from office with a bullet - courtesy of Sr. Cacares from Moca. He was taking loans in the name of the Dominican state from American and European banks for, essentially, the personal use of himself and his cronies. Lilis didn't see a problem with this and neither did the foreign banks. There was really no risk of default. As had become regular practice, the United States and/or European powers would send naval squadrons off the coast and demand to take over part or all of the Dominican customs regime (in essense, the revenues of the Dominican state) to ensure repayment by, essentially, paying themselves from the Treasury. (I'm reminded of Stalin's question: "How many [military] divisions does the Pope have? Apparently not as many as the Rockefellers, JP Morgans and Mellons.)
Subsequently, power shifted back and forth between the parties of the two primary caudillos, Horacio Vasquez and Juan Isidro Jimenez - both of which had no discernable political ideology. The interests of these two groups were purely the obtaining and maintaining power so as to provide patronage jobs and the lucrative control of the letting of "concessions" to foreign companies. These governments would occasionally borrow new money to pay themselves as well as the old debt. At one point, all foreign debt was consolidated into a single loan from the US - resulting in the DR becoming a virtual US protectorate.
The scoundrels in government continued to look for money from European sources, sounding alarm bells in Washington as the US entry into WWI approached. The United States Marines already occupied Haiti, so you can guess what happens next.
The similarities are astonishing, don't you think? A former president and his cronies that absconded everything. Non-ideological political parties fighting for money and power and nothing else. Foreign banks lending to government scoundrels - knowing that the money will be stolen - but also assured of repayment through the "big stick" (now the IMF), complacent in their part in the strangling of a poor country. Governments focused on debt reorganization (so they can borrow more) and the letting of foreign concessions (a personally lucrative business for politicos). US troops in Haiti.
The only difference is that now, instead of occupying the customs house or sending naval squandrons to ensure that the big banks get paid from the mouths of the poor, the IMF comes in as the big stick - threatening to toss the country from the world financial system or worse - and commands an austerity program. Same result, though: Half of government revenues go to pay Citibank, JPMorgan, BNP, Royal Bank, Banco Santander, etc., and poor Dominicans suffer through financial, tax and currency manipulations.
Now aren't you glad all of your countries continue to play a part in this.
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