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How Joe Biden’s privatization plans helped doom Latin America and fuel the migration crisis

On the campaign trail, Joe Biden has boasted of his role in transforming Colombia and Central America through ambitious economic and security programs. Colombians and Hondurans tell The Grayzone about the damage his plans did to their societies.

by Max Blumenthal

Part 5 - Biden eyes Central America, selling mass privatization

In his July sit-down with CNN, Joe Biden trumpeted his Plan Colombia as the inspiration for the Alliance for Prosperity he imposed on Central America. Channeling the spirit of colonial times once again, he bragged of imposing Washington’s policies on the governments of El Salvador, Guatemala, and Honduras.

We’ll make a deal with you,” Biden recalled telling the leaders of these countries. “You do the following things to make your country better so people don’t leave, and we will help you do that.

Biden announced his bold plan on the editorial pages of the New York Times in January 2015. He called it “a joint plan for economic and political reforms, an alliance for prosperity.” Sold by the vice president as a panacea to a worsening migration crisis, the Alliance for Prosperity was a boon for international financial institutions which promised to deepen the economic grief of the region’s poor.

The Alliance for Prosperity “treated the Honduran government as if it were a crystal-clear, pure vessel into which gold could be poured and prosperity would flow outward,” explained Dana Frank, a professor of history at the University of California, Santa Cruz, and the author of the book, The Long Honduran Night.

In reality, the Plan would further enrich and strengthen the political power of the very same elites whose green, deliberate subversion of the rule of law, and destruction of natural resources and of Indigenous and campesino land rights, were responsible for the dire conditions the proposal ostensibly addressed,” Frank added.

In Honduras, the government had no capacity or will to resist Biden’s plan. That is because the country’s elected president, Juan Manuel Zelaya, had been removed in 2009 in a coup orchestrated by the United States.

As Zelaya told The Grayzone’s Anya Parampil, the Obama administration was infuriated by his participation in ALBA, a regional economic development program put forward by Venezuela’s then-President Hugo Chavez that provided an alternative to neoliberal formulas like the so-called “Biden Plan.”

Following the military coup, a corporate-friendly administration was installed to advance the interests of international financial institutions, and US trainers arrived in town to hone the new regime’s mechanisms of repression.

Under the auspices of the Central American Regional Security Initiative, the FBI was dispatched to oversee the training of FUSINA, the main operational arm of the Honduran army and the base of the Military Police for Public Order (PMOP) that patrols cities like an occupation force. 

In an October 2014 cable, the US embassy in Tegucigalpa acknowledged that the PMOP was riven with corruption and prone to abuse, and attempted to distance itself from the outfit, even though it operated under the umbrella of FUSINA.

This June, the PMOP invaded the Autonomous University of Honduras, attacking students protesting the privatization of their school and wounding six.

The creation by the US embassy in Honduras of a special forces unit known as the Tigres has added an additional layer of repressive muscle. Besides arresting activists, the Tigres reportedly helped a drug kingpin escape after he was detained during a US investigation.

While violent crime surged across Honduras, unemployment more than doubled. Extreme poverty surged, and so too did the government’s security spending.

To beef up his military, President Juan Orlando Hernández dipped into the social programs that kept a mostly poor population from tumbling into destitution.

As Alex Rubinstein reported for The Grayzone, the instability of post-coup Honduras has been particularly harsh on LGTTBI (Lesbian, Gay, Trans, Travesti, Bisexual, and Intersex) Hondurans. More than 300 of them have been killed since 2009, a dramatic spike in hate crimes reinforced by the homophobic rhetoric of the right-wing Evangelical Confraternity that represents the civil-society wing of the ultra-conservative Hernandez government.

As the social chaos enveloped Honduran society, migration to the US-Mexico border began to surge to catastrophic levels. Unable to make ends meet, some Hondurans sent their children alone to the border, hoping that they would temporary protective or refugee status.

By 2014, the blowback of the Obama administration’s coup had caused a national emergency. Thousands of Hondurans were winding up in cages in detention camps run by the US Department of Homeland Security, and many of them were not even 16 years old.

That summer, Obama went to Congress for $3.7 billion in emergency funds to ramp up border militarization and deport as many unaccompanied Central American minors as possible.

Biden used the opportunity to rustle up an additional billion dollars, exploiting the crisis to fund a massive neoliberal project that saw Honduras as a base for international financial opportunity. His plan was quickly ratified, and the first phase of the Alliance for Prosperity began.

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