The New Confessions of an Economic Hit Man summary

Introduction

The New Confessions of an Economic Hit Man by John Perkins Economic hitmen use debt and financial pressure to control nations, secure resources, and enrich powerful corporations. The Cold War demanded a new strategy for global influence. American strategists wanted to control uncooperative rulers and secure resources without direct military intervention. By the 1960s, they had found an answer.

They would use economic hitmen, or E H M. These private sector contractors performed the necessary dirty work while keeping countries aligned with United States interests. John Perkins was one such contractor. He was recruited after serving as a young Peace Corps volunteer in Ecuador.

He was then molded into an E H M in the United States. This summary tells his story and explains how the system expanded after he left in 1980. It also explores how these practices increased inequality and what individuals and businesses can do in response.

debt became a powerful tool of influence

debt became a powerful tool of influence. After World War II, the United States government faced a difficult question. How could it advance its interests abroad without armed conflict and mass casualties? On the surface, this might sound like a search for global peace.

But Perkins describes the government's answer as far more troubling. During the Cold War, the United States could back its demands with the threat of atomic weapons. But nuclear weapons were hardly practical tools for everyday negotiations. The country needed another way to persuade foreign leaders to promote American commercial interests.

Economic hitmen became one answer. According to Perkins, E H M used debt as leverage to promote United States interests. An economic hitman operates somewhat like a secret agent, but relies primarily on persuasion and financial pressure. Instead of gadgets, the tools include payoffs, extortion, and misleading economic reports.

A central objective is convincing countries to accept large loans from institutions such as the World Bank. Once governments become heavily indebted, that debt can become a source of political leverage. This is particularly valuable when natural resources are involved. Oil is a prime example.

An indebted government may become more willing to support United States political and commercial objectives. Large American corporations and wealthy investors can benefit as well. Perkins says E H M used distorted forecasts to persuade leaders that enormous projects would strengthen their economies. When leaders resisted, other forms of pressure could follow.

These could include threats, political destabilization, or support for efforts to replace an uncooperative government. In 1953, CIA agent Kermit Roosevelt helped organize a coup in Iran. The objective was to restore Western access to Iranian oil. The coup succeeded, but it also revealed a problem for the United States.

People such as Roosevelt were directly connected to the government. If their activities became public, Washington could be held responsible. A more discreet approach was needed. Money and sensitive assignments could instead be channeled through private companies.

Those companies could hire and manage E H M around the world. If something went wrong, responsibility could appear to stop with private corporations. The activities would be harder to trace directly to the CIA or United States military.