The operations of United Fruit in Colombia (UFCO) during the twentieth century have come to symbolize the downside of American economic might, especially in Latin America. The very name gives rise to images of American exploitation of local governments and labor to further the cause of corporate profit. In fact, the term "banana republic" may have been first used to describe UFCO's actions in the region. But in this new book by historian Marcelo Bucheli, the Newcomen Fellow in Business History at Harvard Business School, the UFCO story appears not to be as black and white as the prevailing view would have it.
Bucheli argues that historians who have analyzed UFCO have done so largely from a social perspective. They've neglected to identify the strategic underpinnings of the company, which Bucheli uncovered through internal documents. "The company's behavior and decisions have not been examined in the context of its long-term business strategy, its shareholders' interests, the evolution of its consumer market, or its constant quest for more profitable activities or approaches to business," he writes.
UFCO has often been depicted as a ruthless exploiter of its laborers and the local union. Bucheli's research demonstrates that after World War II, "the company gave in to almost all workers' petitions to such an extreme that it made more sense for United Fruit to divest and leave production—and labor problems—in the hands of local planners."
Bucheli doesn't give UFCO a free pass, but says it can't be accurately assessed without looking at such influences on corporate behavior as the actions of local landowners, politicians, and entrepreneurs.
This is a valuable read for anyone interested in the history of multinationals, the history of Latin America, the effects of foreign direct investment, the rise and collapse of the banana market, and a variety of other topics embraced in this work.—Sean Silverthorne