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Export Agriculture and Agrarian Crisis
We lived in the countryside. My father would often go to the city looking for
work. My mother coffee and I helped her. We lived on properties
picked
which were owned by the wealthy, and we had to beg work and shelter from
to place. The finqueros did not allow peasants to settle in any one place,
place
so we never had a permanent to live and the poverty was terrible.
place
Peasant families worked hard, and yet we did not have enough to eat.
John Ripton is an adjunct professor in the Latino and Hispanic Caribbean Studies Department
at Rutgers University and chair of history at Gill St. Bernard's School in Gladstone, New
Jersey. He thanks Barbara Ripton for her support and advice and gratefully acknowledges the
comments of the peer reviewers and editors at Latin American Perspectives.
LATIN AMERICAN PERSPECTIVES, Issue 151,Vol. 33 No. 6, November 2006 101-135
DOI: 10.1177/0094582X06294114
? 2006 Latin American Perspectives
101
102 LATINAMERICAN PERSPECTIVES
with the international market for indigo during the Spanish colonial period,
and continues grown corn sold in town and markets
today. Locally village
must compete with subsidized imported corn. Commercial export crops
compete directly with subsistence crops. As global competition drives
down the prices of commodities on which small producers subsist, growing
hunger is one pernicious consequence. In 2004 the Food and Agricultural
Organization (FAO) reported that 800,000 Salvadorans, or 14 percent of the
national were undernourished, compared with 10 percent for
population,
Latin America and the Caribbean as a whole (Replogle, 2004: 2056).
Hern?n Delgado, director of the Nutritional Institute of Central America
and Panama (quoted by Replogle, 2004: 2057), succinctly reflects the cen
tral of under "free-trade" policies: "The message of
irony globalization
... is that there will be cheaper and more accessible food for
globalisation
the population at the global level. In theory, this can be correct, but in prac
distinction as one of the most open economies in the world, wealth disparity
is greater than it was in the 1970s, and unemployment leaves 43 percent of
Salvadorans in poverty (Dellios, 2005). Again, the longer historical view
indicates that globalization processes have deleterious effects on Salvadorans
in general and its rural poor in particular, whether they be the first tentative
steps of the colonial period, the liberalizing policies of the nineteenth and
twentieth centuries, or the present actions of the neoliberal regime.
El Salvador dollarized its economy in 2000 and became the first Central
American country to ratify the Central American Free Trade Agreement
(CAFTA) in 2004. Perhaps themost evident social and economic result of this
crude free-trade form of development is the flood of rural migrants into the
cities of Central and North America as dispossessed and unemployed agri
cultural workers abandon the countryside in search of job opportunities.
Ripton / EXPORTAGRICULTUREAND AGRARIAN CRISIS 103
eign investment. Far from improving the Salvadoran economy, with its
chronic unemployment, these measures have eliminated thousands of jobs
and contributed to the emigration of many more Salvadorans. It is hardly
surprising, then, that in 2003 the Salvadoran government estimated that
2.5 million citizens, 29 percent of the total population, lived outside of
the country (Popkin, 2003: 352-353).
104 LATINAMERICAN PERSPECTIVES
Emigration also serves as a safety valve (see P?rez Saenz, 2000) for the new
right and its transnational project, much as the Central American Common
Market did in the rural crisis of the 1960s (by 1969, one in eight Salvadorans,
300,000 in all, had fled to Honduras to find food and work [see LaFeber,
1984: 175]).
Meanwhile, the U.S. Agency for International Development helped the
Salvadoran government develop the national reconstruction plan that shaped
the neoliberal regime of the 1990s. By 2001 remittances constituted 13.8 per
cent of the GDP and today more than a quarter of Salvadoran adult residents
receives remittances. to the Inter-American Bank
According Development
(IADB), the value of these remittances substantially exceeds official devel
opment assistance inflows to El Salvador and much of Latin America and the
Caribbean. At the current rate of growth, the IADB predicts that remit
tances to Latin America and the Caribbean may well exceed US$300 billion
in the period 2001-2010 (MIF, 2005). Yet, according to Asociaci?n de
Comunidades Rurales para el Desarrollo de El Salvador (Rural Community
Development Association of El Salvador?CRIPDES), poverty remains
endemic in the countryside. Despite remittance flows, moreover, Oxfam
warns that "free trade agreements [such as CAFTA] will bring an increase in
poverty and crime, more out of rural areas, and an increase of
migration
social problems stemming from family disintegration" (Hufstader, 2005).
Today, with U.S.-led economic integration of this hemisphere under the
banner of free trade, scholars need to look more closely at the historical
relationship of the world market to the rural populations of the formerly
colonized nations of Central and South America and the Caribbean.
Structural inequities in the global economy such as unequal access to mar
kets, capital, and technology have often victimized small and communal
producers. The ongoing struggle in the Mexican state of Chiapas drama
tizes these inequities and misplaced priorities. Echoes of these concerns can
be heard throughout the Americas among the critics and protesters of the
North American Free Trade Agreement (NAFTA), CAFTA, the Free Trade
Association of the Americas (FTAA), and theWorld Trade Organization
(WTO). The International Monetary Fund's structural adjustment therapy,
calling for privatization of public enterprises, liberalization of capital mar
kets, market-based pricing, and the elimination of barriers to free trade, has
colonization. Variations and deviations are of course part of this history, but a
larger pattern is evident. Accordingly, the history of this capitalist-driven glob
alizing economy and the impact that it has had on rural peoples in Latin
America should be one of the most critical concerns of contemporary scholars
and policymakers. El Salvador's history offers some enlightening insights.
BACKGROUND
Under the regime of indigo export production at the close of the eighteenth
century in El Salvador, a rural tableau strikingly similar to the one described
at the beginning of this article already existed. A Spanish royal official at that
time reported that "all classes of strangers from diverse places arrived at the
hacienda at harvest time, constructing theirmakeshift huts of discarded wood
and leaving once the harvest was done" (Cortes y Larraz, 1958: 34). Since the
colonial period, it seems, Salvadoran agrarian social relations have been con
Indians to dedicate a portion of their land and labor to cash crops, often
indigo. Communal lands and town ejido tracts (lands attached to colonial
towns for the use of its citizens) were encroached on and other
apparently
wise appropriated by indigo planters through disingenuous economic and
schemes. Isabel Casin's of the records of a
legal study seventeenth-century
Salvadoran hacienda suggests that indigo hacendados commandeered as
much as a third of Indian village land and a substantial portion of Indian
labor to produce indigo at a fixed price in perpetuity. The tribute and tax bur
dens borne by the Indians during the colonial period were the main ways
Indian communities became indebted to indigo planters and eventually lost
their lands to them (Casin, 1972: 33-34, cited in Lindo-Fuentes, 1990).
With their numbers already depleted by disease introduced with the
European invasion a century earlier (MacLeod, 1973: 184-185) and some
of their communities disintegrating under the economic pressures and polit
ical circumstances of indigo production, other Indians apparently resisted
incorporation into the new commercial regime. Isolated communities may
have been attempting to maintain their isolation while others defied the
authorities by fleeing to remote locations (de Solano, 1971: 75, cited by
Flores Macal, 1983: 29). MacLeod (1973: 190-191), however, reporting
that as many as 40 percent of the Indians had succumbed to the epidemics
of the sixteenth century and the remainder were reduced to a "demoralized
rity of traditional community life as the forces of production for world mar
kets impinged on the lands that sustained it.
The or forced labor was another instrument that
repartimiento, system,
ing toMacLeod (1973: 189), the crown had also become corrupted in the
108 LATINAMERICAN PERSPECTIVES
oversight of laws protecting the Indians and was benefiting financially from
overlooking violations. Toward the end of the eighteenth century, as the
European industrial revolution increased the demand of its textile mills for
indigo, the demand for labor increased and the colonial government actively
promulgated orders against those who fled or evaded their obligations to
work (Flores Macal, 1983: 27).
Access to the land, labor, and capital needed to produce for the indigo
export market was a source of conflict among the colonists them
Spanish
selves. The assignment of forced labor exclusively favored the largest pro
ducers, leaving the small producers to scramble for whatever other labor was
available (Lindo-Fuentes, 1990: 23). Added to this source of conflict was the
pressure placed on Salvadoran indigo producers by Guatemalan merchants
who controlled access to the markets and the scarce In the precari
capital.
ous economic environment of Salvadoran
indigo production, planters
became heavily indebted in the latter half of the eighteenth century, and
many lost their haciendas to these merchants, especially when the
Napoleonic Wars interrupted trade in the early 1800s (Wortman, 1982: 192).
In spite of the social conflict and the economic risks of commercial pro
duction so far from the European commercial and political centers, indigo
became the economic foundation of Salvadoran colonial society. By the
close of the colonial period, indigo was being produced in much of the
colony, and local governments everywhere were controlled by the indigo
planters (Lindo-Fuentes, 1990: 32). And while indigo probably never
accounted for more than 15 percent of the provincial product, it had a
strong impact on Salvadoran colonial life. From late September into
November the harvesting and marketing of indigo brought all other activi
ties in the territory to a virtual halt. Government functions were disrupted
as officials, who were often the planters and marketers of the pre
public
cious export crop, abandoned their posts to oversee the harvest (Rubio
S?nchez, 1976: 110-111).
By the beginning of the nineteenth century, despite the commercial dis
ruptions caused by European wars and the internecine
subsequent struggles
over the formation of the Central American republics, the newly
indepen
dent nation of El Salvador had created a state dedicated to commercial
ization of its agrarian resources. State involvement in the commercial
modernization of El Salvador began in the last quarter of the eighteenth
century as the French Bourbon rulers of Spain tried to rationalize and
implement economic planning in its Spanish American colonies. The
Bourbon reforms not only deepened links to the industrializing European
economy but also increased pressure on Indian lands. From this on,
point
as the Salvadoran state matured in the nineteenth it became
century,
Ripton / EXPORTAGRICULTUREAND AGRARIAN CRISIS 109
bargain for the prices of the things it bought and sold; it had to accept what
ever the international economy imposed. The wisdom of increasing
with the outside world was seldom
exchange questioned."
Lindo-Fuentes's argument suggests that a more enlightened agrarian elite
the service of their commercial designs on Indian lands and their veiled attack
on the privileges of the older conservative agrarian order (Rodriguez, 1824):
For Indians, independence from Spain must have initially seemed mean
ingless. Their economic and political fortunes appeared circumscribed by
familiar historic circumstances. Though their putative protection under
Spanish colonial law had vanished with independence, commercial inter
ests connected to global markets in the eighteenth century had begun to
erode the brakes that the law and the crown might have applied to the pro
duction of commercial crops. At however, conserv
globally independence,
ative and liberal factions scrambled to prosper in the new political age. In
the first two decades of independence they fought over control of the
region's resources. A Central American federation (1821-1838) was
formed, but it could not endure the constant civil wars of the various con
servative and liberal factions. Deeper still and ultimately more profound in
its implications for peasants than the civil turmoil and destruction caused
by the internecine struggles for power lay the distant industrial revolution
of the North Atlantic. Indeed, the promise of greater wealth through pro
duction for markets in Europe was a primary driving force in the politics of
early independence (see MacLeod, 1973: 385).
The tortuous course of El Salvador's was
early independence emphati
cally punctuated in 1833 by the indigenous rebellion at Santiago Nonualco,
in the south-central part of the country. Faltering indigo prices (Mulhall,
1883: 473)2and the pressures of an increasingly monetarized society con
tributed to the rebellion. Though ethnic division between Indians and ladi
nos also contributed, it is often difficult to divorce ethnic or racial elements
from class and other economic conditions (Anderson, 1971: 30-33).
Nevertheless, at least one cause of the rebellion is quite clear: the usurpa
tion of Indian lands by indigo producers and exporters, liberals and conser
vatives alike. In addition, it seems more than coincidental that the
movement was born and thrived in San Vicente then known as
Department,
the a where the "most had been com
"indigo emporium," region iniquities
mitted against the Indians" (Flores Macal, 1983: 58).
Several decades later, in 1872, another Indian rebellion occurred, this
time at Izalco in the western area of El Salvador. historical evidence
Again,
112 LATINAMERICAN PERSPECTIVES
indicates that the cause of this rebellion was the intensifying pressure
placed on Indian communal lands (Anderson, 1971: 33). By the middle of
the century, influential commercial interests had embarked on a national
program of infrastructural development designed to facilitate growth in
agro-exports. Improvements in ports and roads strengthened the linkage
between the resources and distant markets. Work
country's agrarian global
on the road from San Miguel to the Pacific port of La Uni?n was started in
1845, and the road connecting Sonsonate and Santa Ana to Acajutla was
improved in the same year. Dock facilities at La Libertad were upgraded at
the same time (Flores Macal, 1983: 57). In 1855, the completion of the
Panama Railroad across the Isthmus of Panama brought more shipping traf
fic to El Salvador's improved Pacific ports (Otis, 1861: 145; Larde y Lar?n,
1957: 27). Larde y Lar?n reports that after 1855 Acajutla received an aver
age of 50 ships annually, compared with a yearly average of 6 ships prior
to the Gold Rush and the opening of the railroad.
Additionally, to ensure that agricultural exporters obtained access to
both land and labor to expand production for foreign markets, the
Salvadoran government assumed responsibility for civil security, putatively
rationalizing police and army involvement in mobilizing and regimenting
an agricultural labor force (Menendez, 1855-1856: 185; Lindo-Fuentes,
1990: 79). In 1860, a civil code was adopted that formally concentrated
power in the hands of the agrarian elite and insulated its state executive
power from popular control (Rep?blica de El Salvador, 1860). Indigo
remained the principal export, reaching its apex of production in the same
year as the Izalco rebellion (Lindo-Fuentes, 1990: 112).
Another crop with export potential beyond that of indigo?coffee?was
being promoted atmid-century by the government and enterprising growers,
and it was coffee that became the economic foundation of the state and
society. In the 1840s the perceptive Englishman John Bailey, while traveling
in El Salvador, observed the potential for coffee exports. Notwithstanding
his enthusiasm for the crop's commercial expansion and his conviction that
not hide that such "progress" portends social instability and even calamity.
Though Bailey did not intend it, his observations reveal that "many of the
Indian towns, where the inhabitants now cultivate the lands for the general
ticipated in the planting of coffee and other export crops, at least prior to the
1880s (1999: 70). He also finds that the Salvadoran national state encour
aged peasants to plant coffee and often protected their rights to common
land. His research a of peasant and other small
provides portrait producers
landholders participating in commercial production as late as the 1890s. By
this time, however, those who controlled the large milling and processing
facilities used access to external credit sources to gain control of the export
trade and "served as the bankers to myriad small producers" (138).
Many other scholars and reports raise significant issues that Lauria
1886 were exactly the same as they were in 1858, even though the price of
maize, under the land pressure from commercial export expansion, had
increased more than three times (Consul Duke, June 10, 1886, and L?pez,
1858) Moreover, toward the end of the century Salvadoran peasants paid a
sales tax of more than 120 percent on the imported cotton shirts (Consul
Duke, March 17, 1882) that had replaced local textiles (Menjivar, 1980:
28-29).
Second, the disparity in political as well as economic power between the
elite coffee merchants and growers and the coffee pickers further illustrates
the pressure placed on the livelihood of the poor majority. The geographer
and historian David Browning baldly asserts that "land came to be viewed
as the estate of the coffee and the state was "a coffee
planters" planters'
government" (Browning, 1971: 174). President Carlos Ezeta was ousted for
having had the temerity to levy a 5 percent tax on coffee exports. He also
fell into disfavor among the coffee elite for trying tomaintain a living wage
for coffee workers by decree (Lindo-Fuentes, 1990: 177; see also White,
1973: 87, 89, and 92).
A third development near the end of the century was the passage of the lib
eral reforms of the 1880s. While these reforms were not always enforced in
the first two decades of their passage (see Lauria-Santiago, 1999: Chap. 7),
they ultimately eliminated common lands, making them available to market
forces. Liberalism was embraced in the name of individual freedom and
ideals. As global market forces increased in strength, an agro-export
republican
portation and communication. While the indigo planters of the previous two
centuries had also used their access to the world market to encroach on the
lands of subsistence farmers, they could not match the coffee planters'
modern technical and financial advantages. Browning (1971: 166) explains:
Thus, by the late nineteenth century, with the development of railroad and
El Salvador had overcome its natural dis
steamship transportation, largely
of absence of a Caribbean coast and distance from the world
advantages
commercial markets. Its connection to the world economy had now over
whelmed the natural constraints that held back modern capitalist develop
ment throughout the country. Linkages between foreign and domestic capital
were investments in banking, railroads, and
strengthened through mining,
production.
Using the rhetoric of free markets, modernity, and republicanism, the cof
fee planters organized police forces and judicial processes to regiment the
rural population into a compliant workforce (Montgomery, 1995: 30;
Cardoso and P?rez, 1983: 231).3 The national army, which had been mod
ernized in the 1860s, was also apparently used to guarantee disciplined
coffee workers under a legislative decree dated March 17, 1881.
116 LATINAMERICAN PERSPECTIVES
But, at the same time that many scholars' research results confirm the
cial forces of the market are not yet sufficiently developed to allow one
class or social sector to dominate the state and society. In such inchoate
social sectors with the greatest access to capital and markets acquire dis
argue, then, that the El Salvador of the early twentieth century was as mod
ern as its historical relationship to the expanding world markets of the North
Atlantic permitted, given the political constraints inherent in the free-market
model of national development that the coffee elite and the state pursued.
A central social feature of El Salvador's agro-export modernization
model was the legions of landless rural workers that migrated throughout
the in search of work on the estates. The increase
countryside large private
in population, which virtually tripled between 1878 and 1930 (Cardoso and
P?rez, 1983: 189), and the land dispossessions radically changed life in the
available a veritable army of and under
countryside, making unemployed
workers. Rural laborers were on the move,
employed continually seeking
work at one estate and then moving on to the next. Few found permanent
Peasants could no return to their communal lands after sea
jobs. longer
sonal work on the plantations as they had done throughout the indigo pro
duction regime and into the late nineteenth century. These rural migratory
work became a permanent element of modern agrarian El Salvador
patterns
(Lindo-Fuentes, 1990: 156).
With the liberal reforms, the Salvadoran state soon became a power
The coffee elite itself became more reactionary and socially rigid and
exclusive in the 1920s. Lindo-Fuentes, Eduardo Colindres's sur
examining
vey of the Salvadoran elite, concludes that between 1880 and 1920 the
Salvadoran elite consolidated itself, giving birth to the mythical "fourteen
families" (1990: 184). Colindres's (1977) study, identifying 63 of the rich
est families in El Salvador, indicates that the vigorous commercial expan
sion of coffee exports had, by 1920, firmly established an oligarchy of
agricultural, industrial, and banking interests that persisted over time.4 In
1929, as the national and international crisis deepened and popular
demands for governmental reform expanded (Anderson, 1971: 45), the cof
fee planters formed the Society for the Defense of Coffee (later called the
Asociaci?n de Cafetalera de El Salvador), apparently out of concern that
the government could no longer adequately protect their interests. White
(1973: 97) reports that with this association "the planter elite could more or
less autonomously control the production and marketing of coffee without
interference from the government and, after 1932, from the military."
Theliberal state had become largely a fiction in any case. It was princi
pally dependent on the revenues the coffee exports permitted. When the inter
national weakened coffee and rural workers' wages were
depression prices
cut in half, raising the discontent and militancy of the coffee workers to crit
ical levels, the government did little to avoid the coming catastrophe (White,
1973: 99). A popularly elected president, Arturo Araujo, presided over very
little reform as the persecution and torture of radical leaders and the killing
of university students continued. The repression climaxed in a state of siege
in July 1931 (Montgomery, 1982: 49; Dalton, 1982: 218-281). White (1973:
98) contends thatAraujo was not "a traitor to his class" and thatmembers of
the oligarchy checked any reform he might have introduced by blocking
administrative appointments. As the earnings of coffee pickers fell below the
subsistence level (Montgomery, 1995: 30), Araujo was overthrown by amil
itary coup inDecember. His vice-president, General Maximiliano Hern?ndez
Mart?nez, was installed as the new president. The new
military government
wasted little time weighing in against popular organizing, especially in the
countryside. In January 1932 there were violent confrontations between gov
ernment forces and peasants and workers (Anderson, 1971: Chap. 6). Then,
a before the insurrection the peasants and workers, a state
just day planned by
of siege
was declared in the western coffee region and martial law was
least privileged. With the subsequent massacre it became obvious that the
military could not retreat from center stage. From 1932 onward, the fear of
communism or of labeled "communist" became a central tenet of a
being
pragmatic national security policy that enabled the military and its conser
vative supporters to renew repression, fix elections, and reassert their dom
inance whenever their interests were threatened.
Though the oligarchy stood silent as the military brutally crushed the
rural rebellion, it does not appear that the coffee elite entrusted its national
economic policy to the new military dictatorship. In the governing rela
tionship that emerged between the military and the coffee oligarchy, key
positions in the economy were occupied by the civilian ruling elite, and cof
fee did not come under control of theMinistry of Agriculture at all (White,
1973: 103). Private producer organizations, first the Asociaci?n Cafetalera
de El Salvador (Salvadoran Coffee Growers Association), and later its suc
cessor, Compa??a Salvadore?a de Caf? (Salvadoran Coffee Company),
founded in 1942, continued to manage coffee production at the national
level. Though the oligarchy may have relinquished the presidency and a
number of other positions in the government in order tomaintain its power
and privileges, itmade sure that coffee, the economic bulwark of the status
quo, remained firmly in its own hands.
The geopolitics of the 1932 rebellion and massacre may also illustrate
the significance of the between resources and world
relationship agrarian
markets. It is revealing that the rebellion took place in the western coffee
zone, where coffee had been so that there was
growing extensively planted
reportedly no space left for subsistence agriculture (see Browning, 1971).
In contrast, there was no rebellion in the eastern zone (east
coffee-growing
of Lake Ilopango), where land concentration and dispossession were less
advanced. one may argue that there was a greater concentration
Although
of workers in the western zone and therefore was easier, the
organizing
presence of numerous landless workers there is in itself related to the
region's into the world economy. Furthermore, there were areas
integration
in the western zone where no rebellion took These were
place. exceptions
apparently communities in which resident landowners attempted to miti
gate the impact of declining coffee prices on their workers (White, 1973:
101). Thus, in the region where coffee was most intensive and
production
integrated into the world market and, more important, in the very commu
ened both the immediate and long-term prospects of rural workers and
peasants and precipitated the rebellion to which the military so brutally
responded. The combination of the deteriorating standard of living and the
120 LATINAMERICAN PERSPECTIVES
lious peasants crystallized the oligarchy's respect for Martinez, and the
United States began to see the merits of a regime that restored order
(LaFeber, 1984: 74).
Anderson concludes (1971: 195) that the Martinez regime "could not
have endured without U.S. recognition." Because of its rhetorical adherence
to the 1923 Treaty of Peace and Amity, which forbade support of military
coups in Central America, the United States granted the new military gov
ernment only informal recognition (Grieb, 1971: 151-172). For formal
recognition, the appearance of legitimacy of the new military government
was required (Anderson, 1971: 86). Eventually, U.S. insistence on this gave
way to its desire for stability and order (LaFeber, 1984: 74), and the
Martinez government was formally recognized in 1934.
Throughout his tenure as president, Martinez suppressed any political
activity by advocates of structural reform. He founded an official governing
party, Pro-Patria, and intimidated or banned all other political organizations.
He nationwide espionage and intelligence operations, exercised
organized
strict control of the press, and injected military politics into state-sponsored
Ripton / EXPORTAGRICULTUREAND AGRARIAN CRISIS 121
schools (Flores Macal, 1983: 78-79). White reports that "there were a number
of violations of university an extreme measure in Latin America"
autonomy,
(1973: 101), and when university students rose against Martinez near the end
of his government the uprising was "drowned in blood" (Anderson, 1971:
197). Under Martinez's citizens became a pop
dictatorship ordinary "captive"
ulation, required to carry the official political party card (c?dula patri?tica) to
avoid being suspected of being communist (Flores Macal, 1983: 79).
The new seems to have instituted terror and violence as a
military regime
matter of public policy and ameans of social control. The agrarian law of 1941
gave landowners the right to obtain a judgment against any worker simply by
the worker as a vagrant who refused to accept the conditions of
denouncing
plantation work (Flores Macal, 1983: 79). The dictatorship forcibly recruited
the country to work on the coffee
peasants throughout plantations, instructing
governors in the eastern to organize and dispatch workers in their
departments
political agenda, one can perhaps see why the military became the primary
122 LATINAMERICAN PERSPECTIVES
actor in Salvadoran politics. In the 1960s, with food imports rising dramat
ically to compensate for declining subsistence production (Browning,
1971: 301) while high coffee prices and industrialization fostered a greater
integration of Salvadoran and foreign capital, U.S. strategic interests in
(265).
In retrospect, Browning establishes beyond doubt the importance of con
sidering natural population increase in explaining the social breakdown and
conflict that emerged in El Salvador in the 1970s. Increased population
pressure on land certainly exacerbated the social relations between the
agrarian classes and accelerated the rate at which various groups would
form and collide over land disputes. But Browning, in contrast to other
scholars (e.g., James, 1964: 679-680; Anderson, 1971: 203), points to a
more complex understanding of historical change (1971: 257): "It is wrong
to suggest that the essence of the may be as an
problem expressed only
between a amount of land and an number of
equation given increasing
people. It is not simply a matter of a growing number of human beings
seeking a limited amount of land, but rather of an accelerating demand for
land, which is taking place within a context of differing ideas about the
nature of land use and ownership."
Bulmer-Thomas (1987: 275) offers a guarded but optimistic view of the
agro-export model of development. While he acknowledges that the region
Ripton / EXPORTAGRICULTUREAND AGRARIAN CRISIS 123
In the 1960s permanent residents [colonos] were expelled from the estates in
droves. The trigger mechanism for the expulsion of "colonos" in El Salvador
was the passage of a law in 1965 that extended the minimum wage to per
manent agricultural workers. The underlying pressure to expel the "colonos"
was already present, but after the minimum wage law was passed, the reten
tion of unskilled workers on the land even more absurd from the
appeared
perspective of growers. Why should a grower be expected to continue to pro
vide subsistence parcels, housing, and weekly rations to "colonos" when the
same money wage held for day laborers?
Major multilateral and bilateral banks and lending agencies also pro
moted the agro-export model of development in El Salvador and Central
Ripton / EXPORTAGRICULTUREAND AGRARIAN CRISIS 125
America. The World Bank, the Central American Bank for Economic
Integration, and the IADB all promoted the development of rural roads and
highways to expand export production (Williams, 1986: 93 and 222-223 n.
27). Loans to cattle ranchers from the IADB, for example, incorporated still
more land into the world markets and evicted still more peasants. Apparently
without concern for the social and economic impact of beef export produc
tion on subsistence cultivators, the Alliance for Progress began promoting
beef exports in 1961 (77). Despite international support for state-sponsored
industrialization and agricultural diversification over the previous 25 years,
in the 1970s El Salvador still depended on three crops (coffee, cotton, and
sugar) for nearly 60 percent of its export earnings. Moreover, coffee contin
ued to dominate, accounting for 42.5 percent of the total value of Salvadoran
exports during the 1970-1974 period (IADB, 1980: 45). Capital investment
in industrial development was also heavily controlled by the coffee-growing
families and others of the traditional agrarian elite. In 1979, for example, the
agrarian elite controlled 84.5 percent of the capital investment in the nation's
industries (Montgomery, 1995: 69).
At the same time, the historical evidence from a vast of sources
array
indicates that the conditions of the international market marginalized
Salvadoran peasants, making many of them poorer and Even
hungrier.
Browning's finding that peasant land takeovers on estates increased
private
in the period 1950-1961 does not refute this conclusion, especially given
that these lands were unused, lands and that the total
largely marginal pro
duction of staple foods fell during the same period (see Browning, 1971:
267-269 and 301; see alsoWhite, 1973: 129).6Durham's (1979) work on the
ecological origins of the 1969 war with Honduras and Williams's (1986)
study of the impact of export agriculture in the region superbly demonstrate
the logic of the international marketplace in El Salvador's agrarian society,
showing precisely how the agrarian elite maximized itsmarket positions and
profits at the expense of the peasants and the natural fertility of the soil.
Williams, moreover, identifies private agro-export as the
enterprise pri
mary agent propelling Salvadoran
agrarian society toward civil strife and
determining the economic, political, and military policies of theUnited States
toward El Salvador (1986: 3). He documents how U.S. policy and domestic
and foreign private enterprise worked hand in hand to promote agricultural
exports at the expense of subsistence and the rural The
agriculture population.
United States gave training in counterinsurgency to the Salvadoran military
and the paramilitary Organizaci?n Democr?tica Nationalista (National
Democratic Organization?ORDEN), which intimidated, terrorized, and
assassinated peasants, workers, and others who helped them (White,
organize
1973: 207; see also Nairn, 1984: 21).
126 LATINAMERICAN PERSPECTIVES
The repression that the United States's military assistance helped facili
tate not only terrorized the rural population but also radicalized the incipient
and worker movements (see Lernoux, 1980: 61-80). At the same
peasant
time, land reform had become an important issue in the 1972 presidential
elections (see Montgomery, 1995: 54;Webre, 1979: 128-129); the failure of
the model of development was clear to more Salvadorans than
agro-export
ever before. By 1971, ten years after theAlliance for Progress had promised
democracy and prosperity, the number of landless families had tripled
(Karush, 1978, cited in LaFeber, 1984: 243). Land reform split the official
state party, the Partido de Conciliaci?n Nacional (National Conciliation
Party?PCN), between the military-led center of the party, which supported
mild agrarian reforms "without demagoguery" {Prensa Gr?fica, September
30 and October 15, 1971), and the traditional agrarian elite on the right,
which spurned the notion.
Conservatives among the agrarian elite had been deserting the PCN
since the founding of the Partido Popular Salvadore?o (Salvadoran Popular
Party?PPS) in 1967 (Webre, 1979: 93). In the intervening years they had
become increasingly suspicious and critical of the S?nchez Hern?ndez gov
ernment. With the passage of the 1970 irrigation and drainage law, a mea
sure that many in the landed oligarchy regarded as an infringement on
private property rights and the first step toward progressive agrarian reform
(Webre, 1979: 144-145), an irreparable split occurred within the ruling
elite. The military-led government hoped that by establishing irrigation dis
tricts it could improve production, including food production, on poorly
exploited land through encouraging more private and state investment in
these districts. It also hoped that the irrigation program would provide more
employment and stem the tide of migration into the cities. Although the
of the law was timid, conservative landown
government's implementation
ers kept up their jeremiads, warning in 1971 that an Assembly plan to legal
ize peasant unions would lead to "absolute anarchy" (Asociaci?n de
Ganaderos de El Salvador, 1971), a thinly veiled allusion to the massacre
of 1932. The conservative split with the S?nchez Hern?ndez government
over reform and other issues became so serious that in 1971 sig
agrarian
nificant elements of the agrarian elite formed another political party, the
Frente Unido Democr?tico Independiente (United Democratic Independent
Front?FUDI) and selected the former ORDEN and National Guard com
mander General Jos? Alberto Medrano as its candidate for the 1972 elec
tions (Mayorga Quiros, 1972: 71-100).
With the breakdown of the military-oligarchy alliance a new stage in
Salvadoran civic and social relations had been reached. In 1971 three left
of-center opposition parties, led by the Christian Democratic Party, formed
Ripton / EXPORTAGRICULTUREAND AGRARIAN CRISIS 127
CONCLUSION
group, and they did so precisely because of the advantage they gained by pro
commercial crops for markets. Their business acumen in the
ducing export
free market structured social relations, certain forms of resource
legitimizing
ically played a secondary role, largely forced to react to the changes driven
economic resisted, rebelled, and ran away, and
by global integration. They
sometimes they acquiesced. Most often, they struggled daily for enough
food to survive while providing the labor that sustained the agrarian elite
and its state When rebelled?when were bold or des
power. peasants they
to pursue another form of production and were
perate enough society?they
often mercilessly crushed.
The history of this small nation also demonstrates the importance of the
state in integrating the nation's resources into world markets. The Salvadoran
state seems to have been, over time, the
systematically arrayed against
Salvadoran With the first viable crop the eco
populace. commercially
nomic base of indigenous Salvadoran culture?communal landholding and
Santiago (1979) illustrates this point. His research shows that in the late
Ripton / EXPORTAGRICULTUREAND AGRARIANCRISIS 129
nineteenth century the state assisted many peasants in their efforts to retain
their lands and participate in commercial agriculture. Thus, with sufficient pop
ular pressure or resistance to an unjust or of it is
pattern system relationships,
possible to alter the course its development?to
of its destructive ten
mitigate
dencies and to amplify its constructive ones. Indeed, virtually every peasant
rebellion against the agro-export regime has attempted to accomplish exactly
these ends. Unchecked or unmodified, though, as is evidenced throughout the
formerly colonized regions of the world, the pernicious structural inequities of
the global economy generate and intensify its periodic social crises.
In the decades since the presidential election of 1972, Salvadorans have
experienced a brutal civil war, the most violent in its history, that claimed
75,000 lives. Just as the liberal state was discredited in 1932, the legitimacy
of military-led governance was eventually rejected. The 1992 UN-brokered
peace agreement substantially reduced the military and generally prohib
ited it from playing an internal security role (U.S. Department of State,
2000: 8). Other significant changes also emerged. In the years of the civil
war (1979-1992) and the peace agreement, for example, more than 22 per
cent of total farmland was transferred to landless affect
peasants, perhaps
ing 25 percent of the rural poor (13). This was potentially an important
opportunity to redistribute wealth and invigorate the lives of poor rural
Indeed, a recent of that poverty
people. study agrarian production suggests
and lack of education continue to be tied to landlessness?in other words,
to a history of unchecked commercial production?and that the poor who
have received land have been more successful in navigating the vagaries of
the market economy and the weather. A more equitable distribution of land
and other agrarian resources would significantly improve the lives of
Salvadorans (see Conning, Olinto, and Trigueros 2001). Equitable distribu
tion of land and wealth has yet to be adequately addressed, and its promise
of improved rural livelihoods has been neglected.
Of course, low wages, subsidized imports, and tepid state support of
agrarian reform have further fueled spiraling unemployment and migration
in the past two decades. At the same time, the emigration of millions of
Salvadorans belies the "successes" of this land redistribution, suggesting
that, at least for the neoliberalism continues to labor
peasantry, integrate
and lives into a perilous global market. Currency devaluation, increases in
the value-added tax, and price hikes in public services frustrate efforts to
improve the livelihood of rural people and seem to have reduced the poten
tial positive effect of national economic growth (U.S. Department of State,
2000: 10).While coffee remains an important agricultural export, it is now
exceeded in value by remittances and exports from the maquiladora indus
NOTES
1. The FMLN was established in the early 1980s to provide a unified front and concerted
challenge to the Salvadoran government and its military forces. Joaqu?n Villalobos of the
Ej?rcito Revolucionario Popular (Popular Revolutionary Army?ERP) was one of the leaders
of the FMLN coalition. In 1994, after the elections were lost, Villalobos and his followers left
the FMLN political party and formed the Partido Democr?tico (Democratic Party?PD), which
subsequently supported the ARENA neoliberal agenda (see Guido B?jar, 1994: 24?32).
2. In 1828 the London price for a pound of indigo was 10s.4d; in 1832 it was 5s.5d.
3. The Rural Police and Mounted Police, established by decrees (1884 and 1889, respec
tively) in the western part of the country in response to rebellions, were institutionalized
Ripton / EXPORTAGRICULTUREAND AGRARIAN CRISIS 131
throughout the country in 1895. A system of village "agricultural judges" was established to
round up day laborers and ensure that they fulfilled their work obligations.
4. Though Colindres's findings have been hotly debated, they provide the most complete
basis for interpreting the origins of the wealthiest Salvadoran families. Among the 63 families
on his list, 21 were traditional Salvadoran elite of the nineteenth century, about half having
established their fortunes prior to the coffee boom, while 38 were families of immigrants, vir
tually all having established themselves during the coffee expansion, and 4 had accumulated
their wealth during the 1950s.
5. In the 1950s, in response to suggestions such as that of the economist Ra?l Prebisch that
the transfer of technology and the possibility of industrial development in poor nations would
be less under the hegemony of the United States than it had been
under the hegemony
of Europe, some poor nations tried to industrialize and expand their domestic consumer base
by investing in manufacturing for domestic markets. The nations that pursued this strategy
focused on manufacturing some of the products they had previously imported from more
industrialized countries.
Theoretically, if the subsequent industrial development used the
nation's own raw materials
itwould allow the poor nation further advantages. This import-sub
stitution strategy acquired a nationalistic character and was often accompanied by restrictions
on foreign investment. Political and business interests in the United States were concerned that
the nationalistic barriers to foreign investment obstructed free trade.
6. Browning (1971: 247) reports that between 1952 and 1962 El Salvador's food imports
doubled. Cotton was expanding in the coastal areas during this period, replacing food crops.
The resultant demand for land pushed rents up 100 percent in some instances. White reports
that peasants "with no access to land for growing maize and other food crops now live with
out work on the margins of roads and in other pockets of public land, in straw huts, waiting
for the next cotton harvest" (1973: 129).
7. The cost of the civil war goes well beyond the estimated physical damage of US$2.2 bil
lion. The human suffering, the death and the crippling, both physical and psychological, and
the forced emigration of approximately 1million Salvadorans must be taken into account as
well, along with the loss in education and training. It seems perverse to assert, as the U.S. State
Department (2000) does, that remittances make up for the losses in education, training, and
even income?in effect, that civil war produces wealth and development via remittances by
emigrants who fled the terror.
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