Four Fights Between Big Corporations and Latin American Interests

Latin America is an incredible place - no question. Anyone who takes a Latin American vacation is likely to have some impressive stories to tell when they get back home. Latin America however has more to it than just being a tourist attraction - for decades foreign companies have seen the commercial potential of the continent.

Naturally this can lead to a conflict of interests, and there’s often a juicy story to tell about an international corporation’s bad behavior or manipulative ways. Here are four examples of conflicts between major corporations and Latino interests.

1) Aluminium Corporation Vs. Peru
Peru is an incredibly mineral-rich country. It is the world’s 3rd biggest exporter of raw copper and a huge proportion of the country’s income stems from mining.

The Chinese mining giant Aluminium Corporation (otherwise known as Chinalco) recently discovered US$50 billion of copper sitting beneath the Toromocho mountain of Peru. The only problem is that they can’t lay a finger on it until they move an entire town.

The residents of Toromocho have so far been offered houses in a completely new town, but the majority are holding out for a better deal.

2) Chevron Vs Ecuador
Petrochemical world leader Chevron has its share of skeletons in the closet, with some of the worst environmental and human rights abuses in history.

From 1964 to 1992, Texaco (now a subsidiary of Chevron) wreaked havoc in Ecuador by leaving more than 600 unlined oil pits in the northern Amazon rainforest and dumping 18 billion gallons of toxic waste water into rivers used for bathing. The toxic crude oil and formation water seeped into the subsoil, contaminating surrounding freshwater and farmland.

As a result, local communities suffered severe health effects, and large areas of rainforest were destroyed to make way for the  creation of oil refineries and pipelines.

Any attempts by the Ecuadorian government to gain compensation from Texaco failed as it transferred all its assets in the nineties and was sold to Chevron in 2001.

3) United Fruit Company Vs Guatemala
The United Fruit Company is possibly the defining example of manipulative corporate interests in Latin America. The company grew to be a powerful entity towards the end of the 19th and into the 20th century. Its influence became so great with regional governments that many countries in Latin America in which United Fruit had plantations came to be referred to as “Banana Republics”.

The company eventually became too ambitious for its own good when it used its influence to prompt an invasion of Guatemala by United States armed forces. Land reforms by a democratically elected president threatened the company’s land holdings, so using the premise of a growing Communist influence, United Fruit persuaded the US government to oust the administration and install a more sympathetic leadership.

4) Coca Cola Vs Colombia
We’ve probably all heard something unpleasant that the Coca Cola company has done overseas. One such example was the assassination of eight workers union leaders between 1989 and 2002 for protesting against the company’s labor practices.

Many other Coca-Cola workers who have joined (or merely considered joining) the Colombian union SINALTRAINAL suffered a similar fate, with stories of kidnappings, torture, and detainment by paramilitaries who intimidated workers to prevent them from unionizing.

Do you know of any other examples of bad corporate behavior in Latin America? Or perhaps you consider this to be a bit pessimistic - what are some examples of good work done by corporations in Latin America?

Author: Gary Sargent - Escaped to Peru / Escaped to latin America