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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 8 - Gutting public healthcare, driving more migration

The Alliance for Prosperity also commissioned the privatization of health services through a deceptively named program called the Social Protection Framework Law, or la Ley Marco de Protección Social.

Promoted by Honduran President Juan Orlando Hernández as a needed reform, the scheme was advanced through a classic shock doctrine-style episode: In 2015, close associates of Hernández siphoned some $300 million from the Honduran Institute for Social Services (IHSS) into private businesses, starving hospitals of supplies and causing several thousand excess deaths, mostly among the poor.

With the medical sector in shambles, Hondurans were then forced to seek healthcare from the private companies that were to provide services under Hernandez’s “Social Protection” plan.

“The money that was robbed [in the IHSS scandal] was used to justify the Ley Marco Proteccion Social,” Karen Spring, a researcher and coordinator for the Honduras Solidarity Network, told The Grayzone. “The hospitals were left in horrible conditions with no human capital and they were left to farm out to private hospitals.”

“When Hondurans go to hospitals, they will be told they need to go to a private company, and through the deductions in their jobs they will have to pay a lot out of pocket,” Spring said. “Through the old universal system you would be covered no matter what you had, from a broken arm to cancer. No more.”

In response, Hondurans poured out into the streets, launching the March of Torches – the first major wave of continuous protests against Hernandez and his corrupt administration.

In March 2015, in the middle of the crisis, Joe Biden rushed down to Guatemala City to embrace Hernández and restore confidence in the Alliance for Prosperity.

“I come from a state that, in fact, is the corporate capital of America. More corporations are headquartered there than anyplace else,” Biden boasted, with Hernández and the presidents of Guatemala and El Salvador standing by his side. “They want to come here. Corporate America wants to come.”

Emphasizing the need for more anti-corruption and security measures to attract international financial investment, Biden pointed to Plan Colombia as a shining model – and to himself as its architect. “Today Colombia is a nation transformed, just as you hope to be 10 to 15 years from now,” the vice president proclaimed.

Following Biden’s visit, the privatization of the Honduran economy continued apace — and so did the corruption, the repression, and the unflinching support from Washington.

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