Book Review
I had three different people recommend the book, The Confession of an Economic Hit Man by John Perkins. It was incredibly well written and a compelling read. The book highlighted the work that Mr. Perkins did in the 70’s and 80’s in the field of international aid and development.
He outlined the formula for his work, which was to go into a country work with their government to build infrastructure such as power grids, water systems, and highway systems. American companies would get the large contracts to build the infrastructure and the government would get a project they could roll out to their people to show their administration’s progress. On the surface, it doesn’t sound nefarious but one has to look deeper.
He explained that they would often inflate the need, the costs or the scale of a project to ensure that the most amount of money could be borrowed. Since the countries trusted the consultant or they needed them to get World Bank approval, they were rarely questioned. The secondary byproduct was that the government went into debt and since the numbers were inflated or the project was not even necessary the debt would eventually spiral out of control.
The countries were now beholden to the US, the World Bank and the large multinational corporations. They would use this power to bully the governments to give their firms additional contracts or unlimited access to their natural resources such as oil and timber. You might have heard of some of these companies-- Haliburton and Bechtel.
Perkins contends this compounding feature perpetuates the current problems for many countries because they are not able to get out debt and focus their own resources on their own people. Ecuador has incredible resources in oil but on annual basis close to 50% of their budget goes to repaying debt so they can’t utilize those resources to lifting their people out of poverty. As he puts it, the empire building of the 21st century is not to rule the country, just to be able to control its resources.
I would highly recommend reading it. It was a powerful book. It opened my eyes to the complexities of international development and the corruption of the current system. If it doesn’t make you angry in the end, then you need to reevaluate your value system.
Random Thoughts
• Good quote from the Concha y Toro Winery- “The best wine in the world is one that you like and you can afford!”
• Small World Experience- I went to the bathroom at the visitor center at Machu Picchu in Peru. A company based in my hometown of Livonia, Michigan made the electric hand dryers.
• I was surprised how popular Iron Maiden was with the young people in Chile. There wasn’t a day that would go by without seeing at least one kid with an Iron Maiden shirt on.
• One of the highlights for birdwatchers on the Galapagos Islands is the blue-footed booby. We saw a number of them. The problem was all the retired men we would bump into, who were wearing “I love boobies” T-shirts and hats. Have some respect for yourself, Grandpa.
• When people talked about American politics no one questioned how American’s would elect President Bush. They all, to the person, questioned how American’s re-elected him.
• At a photo exhibit I went to in Buenos Aires, there was a description of the start of Life Magazine. Their motto describes Singh Around the World perfectly. “To see life, to see the world, to eyewitness great events.”
• I am amazed at how prevalent free wi-fi is in Central and South America. American businesses and cities need to get on the ball. We were making progress in East Lansing before I left. I hope that Councilmember Beard is still pushing to make our entire park system wireless. I wasn’t able to get that done before I left.
• I was surprised how many times people when they found out I worked for a nonprofit asked, “Why do they have nonprofits in the United States?” With our country’s wealth and power they didn’t understand why we wouldn’t take care of own people. Interesting observation.
• Technology is a great way to connect with kids. The videos from Antarctica have been a great hit especially the one with the penguin being eaten by the seal.







