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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 6 - Energy industry rush dooms indigenous communities and human rights defenders

The implementation of the Alliance for Prosperity was overseen by the Inter-American Development Bank (IADB), a US-dominated international financial institution based in Washington, DC that supports corporate investment in Latin America and the Caribbean.

A graphic on the IADB’s website outlined the plan’s objectives in anodyne language that concealed its aggressively neoliberal agenda.

For instance, the IADB promised the “fostering [of] regional energy integration.” This was a clear reference to Plan Pueblo Panama, a region-wide neoliberal development blueprint that was conceived as a boon to the energy industry. Under the plan, the IADB would raise money from Latin American taxpayers to pay for the expansion of power lines that would carry electricity from Mexico all the way to Panama.

Honduras, with its rivers and natural resources, provided the project with a major hub of energy production. In order for the country’s energy to be traded and transmitted to other countries, however, the International Monetary Fund mandated that its national electricity company be privatized.

Since the implementation of that component of “Plan Biden,” energy costs have begun to surge for residential Honduran consumers. In a country with a 66 percent poverty rate, electricity privatization has turned life from precarious to practically impossible.

Rather than languish in darkness for long hours with unpaid bills piling up, many desperate citizens have journeyed north towards the US border.

As intended, the Alliance for Prosperity’s regional energy integration plan has spurred an influx of multi-national energy companies to Honduras. Hydro-electric dams and power plants began rising up in the midst of the lush pine forests and winding rivers that define the Honduran biosphere, pushing many rural indigenous communities into a life-and-death struggle.

This July, The Grayzone traveled to Reitoca, a remote farming community located in the heart of the Honduran “dry sector.” The indigenous Lenca residents of this town depend on their local river for fish, recreation, and most importantly, water to irrigate the crops that provide them with a livelihood. But the rush on energy investment brought an Italian-Chilean firm called Progelsa to the area to build a massive hydro-electric dam just upstream.

Wilmer Alonso, a member of the Lenca Indigenous Council of Reitoca, spoke with The Grayzone, shaking with emotion as he described the consequences of the dam for his community.

The entire village is involved in this struggle,” Alonso said. “Everyone knows the catastrophe that the construction of this hydro-electric plant would create.

He explained that, like so many foreign multi-nationals in Honduras, Progelsa employs an army of private thugs to intimidate protesters: “The private company uses the army and the police to repress us. They accuse us of being trespassers, but they are the ones trespassing on our land.

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