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BAYLIS. Globalization of World Politics_-12 CHA...doc
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Semi-peripheral States—Making the World Safe for Capitalism

As we have already seen, the existence of a semi-periphery is a crucial stabilizing factor within the modern world-system. The nature of semi-periph­eral states plays a vital part in the fulfillment of this role.

Compared to states in the periphery, semi-peripheral states are characterized by relatively coherent and efficient administrative structures. These structures are focused on the task of developing and implementing strategies of national devel­opment. In the language of world-system theory, they attempt to shift their countries' position within the world-economy from the semi-periph­ery to the core: an aim to which most aspire but very few achieve.

However, the relative efficacy of these states is only one of their characteristics; another, and related trait, is their authoritarianism. Even when nominally democratic, semi-peripheral states are often ran by small elites with the military waiting in the wings to 'restore order' should democracy threaten vested interests. One of the main func­tions of these states' coercive capacity is to control labour organizations. This helps ensure that wages and working conditions are lower in the semi-periphery than in the core, where relatively com­plex and costly welfare systems have been developed in order to ensure social stability.

In terms of the semi-peripheral states them­selves, low labour costs allow them a compentive advantage vis a vis the core states in traditional industries, thus aiding the process of national development. In terms of the world-system as a whole, it is the fact that authoritarian semi-periph­eral states control the labour force within their own countries that allows the semi-peripheral zone tn play its crucial stabilizing role.

Box 7.5. The United States, The United Fruit Company, and Guatemala

There are many examples of core states acting to protect the interests of their capitalists active in the periphery. On many occasions the United States government has inter­vened in the domestic affairs of Latin American countries at the request of US-based Transnational Corporations. Particularly notorious is the involvement of the US at the time of the Eisenhower presidency in the overthrow of a democratically elected government in Guatemala in 1954.

The government of Jacabo Arbenz gained 65% of the vote in 1950, in an election generally regarded to be open and free. Part of Arbenz's election campaign had been a promise of land reform. The distribution of land in Guatemala in the 1950s was particularly inequitable with 2% of the population owning 72% of the farm land. Much of this land lay idle whilst the rural population suf­fered from poverty and malnutrition. The large US multi­national United Fruit owned 42% of Guatemala's farm land. In 1953 the Arbenz government announced that it intended to expropriate 234,000 acres (from a total of 3 million acres) of the land held by United Fruit as part of the land reform programme.

As a response to these moves United Fruit lobbied the United States government to take action against this expropriation of land. This lobbying effort was no doubt aided by the fact that several key members of the American foreign policy staff had close financial links to the company. Soon the US government launched a large operation to train a group of disaffected Guatemalan military personnel. At the same time the US launched a hemisphere-wide campaign denouncing communist involvement in the Arbenz government. In the final event the coup was relatively bloodless. A group of 150 rebels under the control of Castillo Armas crossed from Honduras into Guatemala on 18 June 1954. When the expected popular uprising against Arbenz failed to occur, Eisenhower ordered a small number of aircraft to take over Guatemala City. These frightened the popula­tion by dropping sticks of dynamite which created loud explosions. Fearing that this was the beginning of a much larger invasion Arbenz ordered the arming of a worker-peasant militia. The Guatemalan military refused to co-operate and defected from Arbenz to the rebels. Arbenz resigned the presidency and the US ambassador installed Armas.

In the aftermath of the intervention, the expropriated land was returned to United Fruit, the military regime summarily executed more people than had died during the coup, and a pattern of brutal military rule was estab­lished that persisted for forty years.

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