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Confessions of an Economic Hit Man John Perkins BERRETT-KOEHLER San a BK PUBLISHERS, INC Francisco Currents book Copyright (o 0 by John Perkins A l l rights reserved N o part of this publication may be reproduced, distributed, or transmitted in any form or by any means, including photocopying, recording, or other electronic or mechanical methods, without the prior written permission of the p u b lisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law For permission requests, write to the publisher, addressed "Attention: Permissions Coordinator," at the address below Berrett-Koehler Publishers, Inc., 235 Montgomery- Street, Suite 650, San Francisco, C A 94104-2916 Tel: (415) 288-0260 Fax: (415) 362-2512 w w b k c o n n e c t i o n c o m ORDERING INFORMATION QUANTITY SALES Special discounts are available on quantity purchases by corpora- tions, associations, and others For details, contact the 'Special Sales Department" at the Berrett-Koehler address above I N D I V I D U A L S A L E S Berrett-Koehler publications are available through most bookstores They can also be ordered direct from Berrett-Koehler: Tel: (800) 929-2929: Fax: (802) 864-7626; www.bkcomiection.com ORDERS FOR COLLEGE TKXTBOOK/COURSE ADOPTION USK Please contact Berrett- Koehler: Tel: (800) 929-2929; Fax: (802) 864-7626 O R D E R S B Y U.S T R A D E B O O K S T O B E S A N D W H O L E S A L E R S Please Contact Publishers Group West, 1700 Fourth Street, Berkeley, C A 94710 Tel: (510) 528-1444; Fax: (510) 528-3444 Berrett-Koehler and the B K logo are registered trademarks of Berrett-Koehler Publishers, Inc Printed in the U n i t e d States of A m e r i c a Berrett-Koehler books arc printed on long-lasting acid-free paper W h e n it is available, we choose paper that has been manufactured by environmentally responsible processes These may include using trees grown in sustainable forests, incorporating recycled paper, m i n i m i z i n g chlorine i n bleaching, or recycling the energy produced at the paper mill LIBRARY OF CONGRESS CATALOOING-IN-FUBLICATION DATA Perkins, J o h n , 1945 Confessions o f an economic hit man / by John Perkins, p cm Includes bibliographical references and index ISBN-10:1-57675-301-8: ISBN-13: 978-1-57675-301-9 I Perkins, J o h n 1945- U n i t e d States National Security Agency—Biography Economists—United States—Biography Energy consultants—United S t a t e s Biography Intelligence agents—United States—Biography Chas T M a i n , Inc W o r l d Bank—Developing countries Corporations, American—Foreign countries Corporations, American—Corrupt practices 10 Imperialism—History—20th century II Imperialism—History—21st century UB271.U52P47 0 332'.042'092-dc22 I Title [B] 2004045,353 First E d i t i o n 09 08 07 06 05 19 18 17 16 15 14 13 12 11 Cover design by M a r k van Bronkhorst Interior design by Valerie Brewster Copyediting by Todd M a n z a Indexing by Rachel Rice To m y m o t h e r a n d f a t h e r , R u t h M o o d y a n d J a s o n P e r k i n s , w h o t a u g h t m e a b o u t love a n d l i v i n g a n d instilled i / i n m e the courage t h a t enabled m e to write this book CONTENTS Preface Prologue P A R T I: ix xvi 1963-1971 A n E c o n o m i c H i t M a n Is B o r n "In for Life" 12 Indonesia: Lessons for a n E H M Saving a C o u n t r y from C o m m u n i s m Selling M y Soul P A R T II: 20 23 28 1971-1975 M y Role as Inquisitor Civilization o n T r i a l Jesus, Seen Differently Opportunity of a Lifetime 37 42 47 10 Panama's President a n d H e r o 11 Pirates i n the Canal Zone 12 Soldiers a n d Prostitutes 13 Conversations w i t h the General 14 E n t e r i n g a N e w a n d Sinister Period i n Economic History 58 67 71 76 15 The Saudi A r a b i a n M o n e y - l a u n d e r i n g Affair 16 Pimping, and Financing Osama bin Laden vii PART M i : 1975-T981 17 P 18 Iran's K i n g of Kings 19 Confessions of a Tortured A l a n 20 T h e Fall of a K i n g 21 C o l o m b i a : Keystone o f L a t i n A m e r i c a 22 A m e r i c a n Republic versus G l o b a l E m p i r e 23 T h e Deceptive Resume 24 Ecuador's President Battles B i g O i l 25 I Quit P A R T IV: C a n a l Negotiations and G r a h a m Greene 108 113 117 120 124 131 141 146 1981-PRESENT 26 Ecuador's Presidential Death 27 P a n a m a : A n o t h e r Presidential Death 28 M y Energy Company, E n r o n , and George W B u s h 29 I Take a Bribe 30 The U n i t e d States Invades Panama 31 A n E H M Failure i n Iraq 32 September 11 and its Aftermath for M e , Personally 33 Venezuela: Saved by S a d d a m 34 Ecuador Revisited 35 Piercing the Veneer Epilogue 153 Notes Index 158 162 167 196 203 211 221 230 240 A b o u t the A u t h o r 248 Confessions of an Economic Hit Man 173 182 John Perkins Personal History 2 viii 101 189 PREFACE Economic h i t m e n { E H M s ) are highly p a i d professionals w h o c h e a t c o u n t r i e s a r o u n d t h e g l o b e o u t of t r i l l i o n s of dollars They f u n n e l m o n e y f r o m the W o r l d B a n k , U.S A g e n c y f o r I n t e r n a t i o n a l D e v e l o p m e n t the (USAID), a n d o t h e r f o r e i g n " a i d " o r g a n i z a t i o n s i n t o t h e coffers of h u g e c o r p o r a t i o n s a n d t h e p o c k e t s of a f e w w e a l t h y f a m i lies w h o c o n t r o l the p l a n e t ' s n a t u r a l resources T h e i r tools i n c l u d e f r a u d u l e n t f i n a n c i a l reports, rigged elections, payoffs, e x t o r t i o n , sex, a n d m u r d e r T h e y p l a y a g a m e a s o l d as e m p i r e , b u t one t h a t has t a k e n o n n e w a n d terrify- i n g d i m e n s i o n s d u r i n g t h i s t i m e of g l o b a l i z a t i o n I should know; I was an E H M I wrote that i n 1982, as the beginning of a book w i t h the w o r k i n g title, C o n s c i e n c e of a n E c o n o m i c H i t M a n T h e book was dedicated to the presidents of two countries, men w h o h a d been m y clients, w h o m I respected and thought of as k i n d r e d spirits — Jaime Roldos, president o f Ecuador, and O m a r Torrijos, president of Panama B o t h had just died i n fiery crashes T h e i r deaths were not accidental They were assassinated because they opposed that fraternity of corporate, government, a n d b a n k i n g heads whose goal is global empire W e E H M s failed to b r i n g Roldos and Torrijos around, and the other type of hit men, the CIA-sanctioned jackals w h o were always right behind us, stepped i n I was persuaded to stop w r i t i n g that book I started it four more times d u r i n g the next twenty years O n each occasion, m y decision to begin again was influenced by current w o r l d events: the U.S invasion of Panama i n 1989, the first G u l f War, Somalia, the rise of O s a m a b i n L a d e n However, threats or bribes always convinced me to stop In 0 , the president of a major publishing house that is owned by a powerful international corporation read a draft of what h a d now become C o n f e s s i o n s of a n E c o n o m i c H i t M a n H e described it as "a riveting story that needs to be told." T h e n he smiled sadly, shook his head, a n d t o l d me that since the executives at w o r l d h e a d quarters m i g h t object, he could not afford to risk p u b l i s h i n g it H e advised me to fictionalize it "We could market you i n the m o l d of a novelist like J o h n Le Carre or G r a h a m Greene." But this is not fiction It is the true story of my life A more courageous publisher, one not owned by an international corporation, has agreed to help me tell it This story m u s t be told W e live i n a time of terrible crisis — and tremendous opportunity The story of this particular economic h i t m a n is the story of h o w we got to where we are a n d why we currently face crises that seem insurmountable T h i s story must be t o l d because only by understanding our past mistakes w i l l we be able to take advantage of future opportunities; because 9/11 happened and so d i d the second war i n Iraq; because i n addition to the three t h o u sand people w h o died o n September 11, 2001, at the hands of terrorists, another twenty-four thousand died from hunger a n d related causes In fact, twenty-four thousand people die every single day because they are unable to obtain life-sustaining food M o s t i m portantly, this story must be t o l d because today, for the first time i n history, one nation has the ability, the money, and the power to change all this It is the nation where I was b o r n a n d the one I served as an E H M : the U n i t e d States of A m e r i c a W h a t finally convinced me to ignore the threats a n d bribes? The short answer is that m y only child, Jessica, graduated from college a n d went out into the w o r l d on her own W h e n I recently t o l d her that I was considering p u b l i s h i n g this book a n d shared my fears w i t h her, she said, "Don't worry, dad If they get you, I ' l l take over where y o u left off W e need to this for the grandchildren I hope to give y o u someday!" T h a t is the short answer The longer version relates to m y dedication to the country where I was raised, to my love of the ideals expressed by our F o u n d i n g F a thers, to m y deep c o m m i t m e n t to the A m e r i c a n republic that today promises "life, liberty, a n d the pursuit o f happiness" for a l l people, everywhere, and to my determination after 9/11 not to sit idly by any longer w h i l e E H M s t u r n that republic into a global empire T h a t is the skeleton version of the l o n g answer; the flesh a n d b l o o d are added i n the chapters that follow This is a true story I lived every minute of it The sights, the people, x Confessions of an Economic Hit Man the conversations, a n d the feelings I describe were a l l a part o f m y life It is m y personal story, a n d yet it happened w i t h i n the larger context of w o r l d events that have shaped our history, have brought us to where we are today, a n d form the foundation of our children's futures I have made every effort to present these experiences, people, and conversations accurately Whenever I discuss historical events or re-create conversations w i t h other people, I so w i t h the help of several tools: published documents; personal records a n d notes; recollections — m y own a n d those of others w h o participated; the five manuscripts I began previously; a n d historical accounts by other authors, most notably recently published ones that disclose i n f o r m a t i o n that formerly was classified or otherwise unavailable References are provided i n the endnotes, to allow interested readers to pursue these subjects i n more depth In some cases, I combine several dialogues I had w i t h a person into one conversation to facilitate the flow of the narrative M y publisher asked whether we actually referred to ourselves as economic h i t men I assured h i m that we d i d , although usually only by the initials In fact, on the day i n 1971 w h e n I began w o r k i n g w i t h m y teacher Claudine, she informed me, " M y assignment is to m o l d you into an economic h i t m a n N o one can k n o w about your i n volvement — not even your wife." T h e n she t u r n e d serious "Once you're i n , you're i n for life." T Claudine's role is a fascinating example of the m a n i p u l a t i o n that underlies the business I h a d entered Beautiful a n d intelligent, she was h i g h l y effective; she understood m y weaknesses a n d used them to her greatest advantage H e r job a n d the way she executed it exemplify the subtlety of the people b e h i n d this system Claudine p u l l e d no punches w h e n describing what I w o u l d be called u p o n to M y j o b , she said, was "to encourage w o r l d leaders to become part of a vast network that promotes U.S commercial i n terests In the end, those leaders become ensnared i n a web of debt that ensures their loyalty W e can draw o n them whenever we desire — to satisfy our political, economic, or military needs In t u r n , they bolster their political positions by b r i n g i n g industrial parks, power plants, a n d airports to their people T h e owTiers of U.S engineering/construction companies become fabulously wealthy." Today we see the results of this system r u n amok Executives at our most respected companies hire people at near-slave wages to Preface sei David Harris, S h o o t i n g the Moon: U n l i k e Any Other, Ever David Harris, S h o o t i n g the Moon: U n l i k e Any Other, Ever The T r u e Story The T r u e S t o n / of a n A m e r i c a n M a n h v n t (Boston: Little, Brown and Company, 0 ) , p 43 M a n u e l Noriega with Peter Eisner, The Memoirs ica's Prisoner of a n A m e r i c a n M a n h v n t (Boston: Little, Brown and Company, 0 ) , p 31-34 of M a n u e l N o r i e g a , Amer- (New York: R a n d o m House, 9 ) , p 212; see also Craig Unger, "Saving the Saudis," V a n i t y F a i r , October 2003, p 165 Manuel Noriega with Peter Eisner, The Memoirs ica's Prisoner of M a n u e l N o r i e g a , See www.famoustexans.com/georgebush.htm, p M a n u e l Noriega with Peter Eisner, The Memoirs icas Prisoner of M a n u e l N o r i e g a , U n l i k e Any Other, Ever The T r u e Stoiy 10 David Harris, S h o o t i n g the Moon: U n l i k e Any Other Ever p The Tme Story of M a n u e l N o r i e g a , Prisoner of M a n u e l N o r i e g a , Amer- (New York: R a n d o m House, 1997), p 211 13 Manuel Noriega with Peter Eisner, The Memoirs ica's Amer- (New York: R a n d o m House, 1997), p 248 12 M a n u e l Noriega with Peter Eisner, The Memoirs Prisoner of a n A m e r i c a n M a n h u n t (Boston: Little, Brown and Company, 2001), p 11 M a n u e l Noriega with Peter Eisner, The Memoirs ica's of a n A m e r i c a n M a n h u n t (Boston: Little, Brown and Company, 2001), p www.famoustexans.com/georgebush.htm, Prisoner Amer- (New York: R a n d o m House, 9 ) , p - David Harris, S h o o t i n g the Moon: ica's Amer- (New York: R a n d o m House, 1997), p 114 of M a n u e l N o r i e g a Amer- (New York: R a n d o m House, 1997), p xxi Chapter 31 An EHM Failure in Iraq Morris Barrett, " T h e Web's W i l d World," T I M E , A p r i l , 9 , p 62 Chapter 32 September 11 and its Aftermath for Me, Personally For more about the Huaoranis, see Joe Kane, Savages (New York: Alfred A Knopf, 9 ) Chapter 33 Venezuela: Saved by Saddam "Venezuela o n the B r i n k " editorial, Nexv The R e v o l u t i o n W i l l Not Be Televised, York Times, December 18,2002 directed by K i m Bartley and D o n n a c h a O'Briain (in association with the Irish F i l m Board, 2003) See www.chavezthefihn.com "Venezuelan President Forced to Resign," Associated Press, A p r i l , 2002 Simon Romero, "Tenuous Truce in Venezuela for the State and its O i l Cornpan)'," New York Times, A p r i l 24, 2002 Bob Edwards, "What Went Wrong with the O i l D r e a m i n Venezuela," National Public Radio, M o r n i n g E d i t i o n , July 8, 2003 Notes 237 (ringer T h o m p s o n , "Venezuela Strikers Keep Pressure on Chavez and O i l Exports," New York Times December , 0 Corpo- For more on the jackals and other types o f hit men, see: P W Singer, r a t e W a r r i o r s : The R i s e o f t h e P r i v a t i s e d M i l i t a r y I n d u s t r y (Ithaca N Y and L o n d o n : Cornell University Press, 2003); James R Davis, Fortune's r i o r s : P r i v a t e Armies and the New W o r l d Order War- (Vancouver and Toronto: Douglas & Mclntyre, 0 ) ; Felix I Rodriguez and John Weisman, Shadow W a r r i o r : The CLA Hero of 10O U n k n o w n Battles (New York: S i m o n and Schuster, 9 ) T i m Werner, "A Coup by A n y Other Name," N e w York T i m e s , A p r i l 14, "Venezuela Leader Urges Years for Strike Chiefs," Associated Press, 2002 Feb- ruary- 2 , 0 Paul Richter, " U S H a d Talks on Chavez Ouster," Los Angeles Times, April 17, 0 Chapter 34 Ecuador Revisited Chris Jochnick, "Perilous Prosperity," New I n t e r n a t i o n a l i s t , June 2001, http://www.newint.org/issue335/perilous.htm United Nations H u m a n Development Report (New York: United Nations, 1999) For additional information o n the hostage situation, see A l a n Zi be l, " N a tives Seek Redress for Pollution," O a k l a n d T r i b u n e , December 10, 0 ; Hoy (Quito, Ecuador daily newspaper) articles of December 10-28, 0 ; "Achuar Free Eight O i l Hostages," E l Commercio (Quito daily newspaper), December 16, 2002 (also carried by Reuters): " E c u a d o r : O i l F i r m Stops W o r k because Staff Seized, Demands Government Action," and "Sarayacu — Indigenous Groups to Discuss Release o f K i d n a p p e d O i l M e n , " E l U n i verso (Guayaquil, Ecuador, daily newspaper), http://www.eluniverso.com, December 24, 2002; and J u a n Forero, "Seeking Balance: Growth vs Culture in the Amazon," New York Times, December 10, 0 Current, updated information about Ecuador's A m a z o n i a n people is available at the Pachamama Alliance Web site: http://ww vv.pachamama.org r Chapter 35, Piercing the Veneer National debt statistics from the Bureau o f the Public Debt, reported at www.publicdebt.treas.gov/opd/opdpenny.htm; national income statistics from the W o r l d Bank at wwvv.worldbank.org/data/databytopic/GNIPC.pdf Elizabeth Becker and Richard A O p p e l , " A N a t i o n at War: Reconstruction U.S Gives Bechtel a M a j o r Contract in Rebuilding Iraq," New York A p r i l 18, 2003, Times, http://w"vvw.n)'times.com/2003/04/l8/international/ worldspeciaVl8REBU.html Richard A O p p e l with Diana B Henriques, " A Nation at War: T h e C o n tractor Company Has Ties i n Washington, and to I r a q , " N e w York A p r i l 18, 2003, worldspecial/lSCONT.html 238 Times, http://www.mtimes.com/2003/04/18/international/ Confessions of an Economic Hit Man http://rnoneyxnn.corn/2003/04/17/news/companies/war-bechtel/ index.htm Epilogue Energy Information Administration, reported i n U S A T o d a y , M a r c h 1, 2004, p Notes INDEX A Bechtel Group, Inc., 73-74,160,164, , 213, 214-215 Afghanistan, - , 1 Agoyan hydroelectric plant, xix bin Laden, Osama, A I D S medicines, xii bin Laden family, - 96-97,183,194 A l l e n , E t h a n , 147 British Petroleum (later BP), 18 Allende, Salvador, 78 British V i r g i n Islands, 147 al-Qaeda, 206, 211 Bunau-Varilla, Philippe, Bush, George H W „ 59, A m a z o n , xvii-xx, 210 79,168 bin L a d e n family and, A m e e n , M i c h a e l , 166 United Fruit Company, - , A m i n , Idi, "wimp factor," , Amoco, 6 Bush, George W., , 6 antipollution laws, 164 Arbusto, 165-166 Arab-Israeli war, 82 rallying o f support for U.S Arbenz, Jacob, - activities, 198 Arbusto, 165-166 Venezuelan activities, 9 Arias, Arnulfo, 59 Bush administration (George H W.), Arias family, 173-174 A r m a s , Carlos Castillo, Bush administration (George W.), A s h l a n d O i l Company, 185-186 201, A s i a n Development Bank, 213-214 Bush family, assassinations H u g o Spadafora, C Jaime Roídos, ix, 156 Canal Treaty, , - , - 5 , O m a r Torrijos, ix, 158-161 158- See also Panama Canal Zone, 61, 64, See B also Panama Baer, Robert, Carlyle G r o u p , Bahasa Indonesia, 38 Carter, Jimmy, 102,118-119,154, Bahrain, 166 159- 160,168 Baker, James A , I l l , 98 Carvajal, José, 144-145 banking industry Casey, W i l l i a m J., 174 Asian Development Bank, Chas T M a i n , Inc ( M A I N ) See Chase Bank, MAIN Inter-American Development Chase Bank, 194 Bank, 74 Chavez, Hugo, xx, , - 2 , 204 Panama, 63 See also Bechtel, Riley P., 214 Venezuela Cheney, Richard, , 7 240 Chile, 78, 0 Department of State, rule against Chuchu, Sergeant (José de Jesus Martinez), 159 C h u m p i , Shakaim, 189 CIA, , , , 200 C i v i l i s a t i o n on T r i a l (Toynbee), "Claudine," xi, 14, 22, - Colombia, 61 economic/electric load forecasting, 122 historical overview of, - 2 L a V i o l e n c i a , 121 rule against sending U.S citizens to, 124 sending U.S citizens to Colombia, 124 Department o f the Treasury, 84 Depression, N e w Deal policies, 78 deregulation, 164-165,168 desensitization, 180-181 destabilization campaigns, U.S., developed countries (DCs), 47-48 " D o c , " 113-116 dollars versus euros, 213 D o m i n i c a n Republic, 61 D r e a m Change Coalition, 186 E colonial Americans, 218 econometric model, 101-102 colonialism, in Panama, 103 economic forecasting, 84-85,122 commerce, imperial approach to, 218 economic hit men ( E H M s ) Common Sense (Paine), , 63 description of, ix communism, , effects of work of, 198 conspiracies, x i i - x i i i , 156, 216, goals/objectives of the job, , corporal punishment, 82 identification of potential, 19 corporatocracy, x i i - x i i i , 26 rationalizations o f deeds by, 169 actions to stop, 221-225 role of, basis of, standards for, 84 growth of, media as part of, 221 of modern empire, 216 obstacles to, 212-213 pillars of, 143 strengthening of, 83 corruption, , "Country with Five Frontiers, T h e " (Greene), 104-105 coups, 73, 200, 201 culture, Indonesian, - D training, 14-15 economics, 26, , - Ecuador, xvii-xx, 141-145,189-190, - See also Roldos, Jaime Ecuadorian Congress, 156 H u a o r a n i tribe, 186 Hydrocarbons Policy, 143-144 national budget/debt, 203 oil spill, xvii-xviii poverty levels, 203 Shell, xvi, tribal wars against oil companies, xvi-xvii Dauber, Jake, 52 Eisner, Peter, 178 debt electric load forecasting, 31, 54, creation o f foreign, - , 109,122 Ecuador's, 203 embassies, 16,118-119 Iran's payment of, 114-116 empire building, xx-xxi, 176, United States, 212 energy industry, 164-165, 168-169 world, xviii England, 18 Index 241 E n r o n , 165 Helms, Richard, 79 holy wars, 49 euros versus dollars, 213 hostages, U.S Embassy (Iran), 118-119 F Hostler, Charles, 6 Faisal, King, House o f Saud See Saudi A r a b i a "Farliad," - , 1 - 1 H u a o r a n i tribe (Ecuador), 142-143, " F i d e l , " 63 190 financing of terrorism, - hunger, x, xii, 192 fixed exchange rates, 7 Hurtado, Osvaldo, 157 Flowering Desert project, 110-111 Hussein, Saddam, 182, 0 forecasting hydrocarbons law, 156,196 economic/electric load Hydrocarbons Policy, 143-144 (Colombia), 122 hydroelectric plants, Agoyan, xix electric load, 31, 54,109,122 Saudi Arabian economic, - foreign aid, 47-48, 75 I ideals, foreign policy, U.S., , Illingworth, Charlie, - , - free market system, 170 free trade agreements, 221-222 Fujimori, Alberto K., 200 104 imperialism, 48,139, 218 importation of labor forces, 86 future actions, 221-225 income, world population, 65, 206 G Independent Power Systems, Inc Gadhafi, M u a m m a r , 60 (IPS), 163-164,168,185-186 Garrison, J i m , Indonesia, 16 General Agreement on Tariffs and creation of language for, 38 Trade ( G A T T ) , 78 culture, - G e t t i n g to K n o w t h e G e n e r a l Japanese invasion of, 20 (Greene), 159 oil industry, 25 global empire, views o f Americans, - globalization, 185 Instituto de Recursos Hidráulicos y global management of petroleum, 214 Electrificación, Grant, Winifred, 162 integrity 138-139 Greene, G r a h a m , 104-107, 159 intelligence community, U.S., 104-105 Greve, Einar, 9,13,134 Inter-American Development Bank, gross national product ( G N P ) , deceptive nature of, G r o u n d Zero, 190-195 See 74international financial system also September 11, 2001 attacks trends, - international law, U.S breach o f Guatemala, 72-73, 200 177-178 International Monetary F u n d ( I M F ) , H 19, 78,169-170 Hall, M a c , 52,145,165 international monetary system, 77 Harken Energy, 98,165-166 Interoceanic Canal Commission, Harris, David, 7 Hayes, M a r t h a , 134 242 103-104 invasions, 20,176-177, 184, 0 Confessions of an Economic Hit Man Iran competitors, 12, 89 Islamic uprising, 117119 O P E C oil embargo, 76-77 payment of debts by, 114-116 rebellion against British Petroleum, 18 Department o f the Treasury and, 84 effects of Saudi Arabian deal, 94-98 electrical forecasting, 109 Shah o f Shahs, 108 electrification project in Southeast Torrijos's opinions of, Asia, 21 Iraq, , - , 9 , 200 energy industry, position on, 165 Islam, 45-46,117-119 firing of Bruno Zambotti, 145-146 folding of, 165 J gender biases, 13 Jakarta, 24 losses i n Iran, 119 Japanese invasion of Indonesia, 20 Manifest Destiny, - , 75,155 jihads, 49 M a r k o v method for econometric Johnson administration, - Joint Economic Commission modeling, 102 " M a r t i n , Claudine," xi, 14, 22, - (JECOR), 83-84 Martinez, José de Jesus (Sergeant K "Mary," 147-150 Chuchu), 159 Kellogg B r o w n & Root, 214-21215 McNamara, Robert, 26,55, - , Kennedy administration, 78-79,121 media, 221 Khadafi (or Gadhafi), M u a m m a r , 60 Memoirs of M a n u e l Noriega: Khomeini, Ruhollah, Ayatollah, 118-119 America's Prisoner (Eisner), military-industrial complex, Kissinger, Henry, 91 military support to Saudi Arabia, Kuwait, 184 conditions of, 90 missionary groups, Summer L Institute of Linguistics (SIL), labor forces, importation to Saudi A r a b i a of, 86 141-142 Monroe, James, 61 language, creation o f Indonesian, 38 M o n r o e Doctrine, 61 leaders, discrediting of, 208 Montesinos, Vladimiro L , 200 less-developed countries ( L D C s ) , M o r m i n o , Paul, 54 Mossadegh, M o h a m m a d , 18, , 47-48 L i p p m a n , Thomas W,, 91, 96 loans, conditions of, xvii See also 91,114 Muslims, 45-46,118-119 debt Longfellow, H e n r y Wadsworth, 217-218 N national budget/debt, Ecuador's, 203 National Security Agency (NSA), 6, 7-8 M macroeconomics, 26 nation-building programs, 121 MAIN beliefs o f employees, natural resources, xviii, 183-184, 55-56 Colombian contracts, 122 205-206, - N e w Deal policies, Index 243 Canal Treaty, 59,102-103, New Hampshire Public Service Commission, 163 154-155, 158-161 New York City, - Canal Zone, , Nicaragua, 200 goal of invasion of, - 7 N i x o n , Richard, 43, 77 income per capita, Noriega, M a n u e l , , - , 200 Instituto de Recursos Hidráulicos nuclear power, 154,163 y Electrificación, 71 ínteroceanic Canal Commission, O 103-104 October War, 82 prostitution laws, off-shore drilling rights (Bahrain), 6 U.S invasion of, - , 200 oil income, 83 Panamanian Defense Forces, 174 oil industry Pan-American interests, 121-122 devastation o f rain forests, 205, 207-208 George W Bush and, 165-166 Parker, H o w a r d , - 3 , 52 "Paula," 2 - , - , - P a u l R e v e r e ' s R i d e (Longfellow), 217-218 global management o f petroleum, 214 guarantee of oil supplies to U.S by Peace Corp, 8-10 Perkins, J o h n See also Saudi A r a b i a , - Independent Power Systems, Inc (IPS) hydrocarbons law, 156,196 acceptance o f bribe, - Indonesia, 25 birth o f daughter, 162 off-shore drilling rights early life, - (Bahrain), 6 O i l B o o m , xviii oil concessions, xix-xx education, - expert witness/consulting practice, 154,163,187 oil embargos, 76-77, 82-83, , job with N S A , - oil spills, xvii-x\"iii marriage to A n n , - O P E C , - 7 , , , 211-212 marriage to Winifred, 162 protecting U.S supplies, 83 Peace C o r p , 8-10 revenues, personal history timeline, rising prices, 200 U.S dependence on oil, reduction of, Venezuelan oil, - organized crime metaphor, 139-140 Ouellette, Pauline, 134 226-229 position with M A I N , - 1 promotions at M A I N , 101 recruitment by M A I N , resignation from M A I N , 150, 153-154 resume, 131-140 P self-reflection, 124-130,147-150, Pahlavi, M o h a m m a d Reza, Shah, 18, 71-72 Paine, Thomas, Panama, - , , 200, 1 See also Torrijos, O m a r 179-181 separation from A n n , 2 , 50-51 S p i r i t of the S h u a r (Perkins a n d Chumpi), 189 S t r e s s - F r e e H a b i t , The, banking industry, " U n c l e Frank," - canal traffic, visit to G r o u n d Zero, - 244 Confessions of an Economic Hit Man The World Is A s You D r e a m I t , 186 writing o f books, , Saudi A r a b i a dependence o n United States, 87-88 187-188,198, 218 Petróleos de Venezuela, financing of terrorism, - petroleum See oil industry guarantee o f oil supplies to U.S by, - pharmaceutical industry, xii Pinochet, Augusto, 0 historical overview of, 81-82 piracy, importation o f labor forces, 86 polarization, oil income, 83 pollution, antipollution laws, 164 "Prince W." 92, - poverty levels, xviii, 24,197, 203 religious laws, 81-82 Prasad, N a d i p u r a m " R a m , " 102 "Saudi Connection, The," - Priddy, Paul, 145-146,153,154 "Saving the Saudis," 97-98 "Prince W " 92, - trash removal by goats, 85,182 privatization, 183-184,185 "Prophecy of the Condor and Eagle," U.S relations, - , - 8 , 90 Saudi A r a b i a n Money-laundering 209-210 Affair/Saudi Arabian Monetary prostitution laws (Panama), 68 Agency ( S A M A ) , 88, 92, 96, Public Service Company o f N e w Hampshire, 154 Public Utility Regulatory Policy A c t ( P U R P A ) , 167 182-185, 211, 214 "Saudi Connection, The," - S A V A K , 114 "Saving the Saudis," - School o f the Americas, - , R 159-160,175 rain forests, xviii, - , - Schultz, George P., 74, , , , Rasmon ("Rasy"), - , 42 Reagan, Ronald, 154-155,168 , 213 Seabrook nuclear power plant, 154, 163 Reagan administration, - redemption, 224 September 11, 2001 attacks, x, 98, Reich, Otto J , 201 190-195,198 religious laws, Saudi A r a b i a , 81-82 Shell, Ecuador, xvi, Republican Party, Shooting Revere, Paul, - Shuars, 186,189, , 222 Riyadh See Saudi A r a b i a Sir Francis Drake Channel, 147 Rockefeller, David, 194 slave trader analogy, 180-181 Roídos, Jaime, ix, 141-145,154,156, soldier image, - 196 See also Ecuador Roosevelt, Kermit, 18-19, , , 9 Roosevelt, Theodore, 58-59, 61, 120-123 the Moon (Harris), 177 Southeast Asian foreign policy, U.S., 21 Soviet U n i o n , b i n Laden/Afghan war, - , Spadafora, H u g o , 174,175 S Sadat, Anwar, 82 Saint, Rachel, 143 Spectrum , - 6 S p i r i t of the S h u a r (Perkins and Chumpi), 189 "Sally," - statistics, manipulation of, 13 Saud, M o h a m m e d ibn, 81 steps to avoid future crises, 221-225 Index 245 pro-Israeli stance, punishment Stone & Webster Engineering C o r p o ration ( S W E C ) , - , for, story leaks, 215 Stress-Free 82-83 relations with Saudi Arabia, H a b i t , The (Perkins), 171 - , 87-88, 90 Suharto, 21 services sold to Colombia by, 122 Sukarno, - , 37-38 views of Indonesia by Americans, Summer Institute of Linguistics (SIL), 141-142, 156,157, 158 42-46 United States-Saudi Arabian Joint E c o n o m i c Commission T (JECOR), 83-84 terrorism United Way, 186 deaths from, x U.S Department o f State, rule against sending U S citizens to Saudi terrorist financing, - Colombia, 124 September 1 , 0 attacks, , U.S Department o f the Treasury, 84 189-195 Texaco, xvii U.S Embassy (Iran) seizure, 118-119 Torres, M a n u e l , 124-125 U.S intelligence community, 104-105 Torrijos, Omar, ix, - , 61, 66, U.S Southern C o m m a n d , 159-160 See also Panama USAID, death of, - V offer of asylum to exiled leaders, 119 Venezuela, xx, 61,196-202 See on Roldós's death, 157 torture, "Doc," 1 - 1 also Chavez, Hugo on President Ford, 103 V i e t n a m War, 21 V i o l e n c i a , L a (Colombia), 121 Toynbee, A r n o l d , , training centers, warfare, 61-62 W trans-Andean oil pipeline, xvii-xviii Wahhabi sect, 81-82 trash removal by goats, 85,182 Wall Street, tribal wars (Ecuador), against oil warfare training centers, 61-62, 159-160 companies, xvi-xvii truth, denial of, 1 wars Arab-Israeli, 82 bin Laden/Afghan war, 96-97,183 U United Fruit Company, - , 209 Ecuador, x v i - x v i i , 206 United States holy, 49 October War, 82 breach of international law, tribal (Ecuador), xvi-xvii 177-178 colonial Americans, 218 V i e t n a m , 21 commercial interests, transformations i n , 185 W o r l d W a r II, 78 Washington, George, 194 invasion o f Panama, - , 0 Waste Management, Inc., 96 national debt, 2 waste products, 163 old republic versus new empire, water resources, Iraq's, 183-184 127-128 policy on empire building, 246 wealth, private financial, xix weapons production, Confessions of an Economic Hit Man 56-57 Weinberger, Caspar, 79,160, 213 "wimp factor" (George H W Bush), 175,184 W o r l d a n d the West, The (Toynbee), W o r l d Bank, 19, , 78, , - W o r l d Is A s You D r e a m I t , The (Perkins), 186 W o r l d Trade Organization ( W T O ) , Y "Yamin," - 1 Z Zambotti, Bruno, 52,101,104,145, 163-164 Zapata Petroleum Corp., 73, 79 170 W o r l d War II, 78 Index 24 A B O U T THE AUTHOR J o h n Perkins has lived four lives: as an economic hit m a n ( E H M ) ; as the C E O of a successful alternative energy company, w h o was rewarded for not disclosing his E H M past; as an expert on indigenous cultures a n d shamanism, a teacher a n d writer w h o used this expertise to promote ecology a n d sustainability while c o n t i n u i n g to honor his v o w of silence about his life as an E H M ; a n d now as a writer who, i n telling the real-life story about his extraordinary dealings as an E H M , has exposed the w o r l d of international intrigue and corruption that is t u r n i n g the A m e r i c a n republic into a global e m pire despised by increasing numbers of people around the planet A s an E H M , John's job was to convince t h i r d w o r l d countries to accept enormous loans for infrastructure development — loans that were m u c h larger than needed — a n d to guarantee that the development projects were contracted to U.S corporations like H a l l i b u r t o n and Bechtel Once these countries were saddled w i t h huge debts, the U.S government a n d the international a i d agencies allied w i t h it were able to control these economies a n d to ensure that oil a n d other resources were channeled to serve the interests of b u i l d i n g a global empire In his E H M capacity, J o h n traveled all over the w o r l d a n d was either a direct participant i n or a witness to some of the most d r a matic events i n modern history, including the Saudi A r a b i a n M o n e y laundering Affair, the fall of the shah of Iran, the death of Panama's President O m a r Torrijos, the subsequent invasion of P a n a m a , a n d events leading up to the 0 invasion o f Iraq In 1980, Perkins founded Independent Power Systems, Inc (IPS), an alternative energy company U n d e r his leadership as C E O , IPS became an extremely successful f i r m i n a high-risk business where most of his competitors failed M a n y "coincidences" a n d favors from people i n powerful positions helped make IPS an industry leader J o h n also served as a highly p a i d consultant to some of the corporations whose pockets he h a d previously helped to l i n e — t a k i n g on this 248 role partly i n response to a series of not-so-veiled threats a n d l u c r a tive payoffs After selling IPS i n 1990, J o h n became a champion for indigenous rights a n d environmental movements, w o r k i n g especially closely w i t h A m a z o n tribes to help t h e m preserve their rain forests H e wrote five books, published i n m a n y languages, about indigenous cultures, shamanism, ecology, and sustainabilify; taught at universities and learning centers on four continents; a n d founded a n d served on the board of directors of several leading nonprofit organizations O n e of the nonprofit organizations he founded a n d chaired, D r e a m Change C o a l i t i o n (later simply D r e a m Change, or D C ) , became a model for inspiring people to attain their personal goals and, at the same time, to be more conscious of the impacts their lives have on others a n d on the planet D C seeks to empower individuals to create more balanced a n d sustainable communities D C s Pollution Offset Lease for E a r t h ( P O L E ) program offsets the atmospheric p o l lution we each create, helps indigenous people preserve their forests, and promotes earth-honoring changes i n consciousness D C has developed a following a r o u n d the w o r l d a n d has inspired people i n m a n y countries to form organizations w i t h similar missions About the Author 249 D u r i n g the 1990s a n d into the new m i l l e n n i u m , J o h n honored his vow of silence about his E H M life a n d continued to receive l u crative corporate consulting fees H e assuaged his guilt by applying to his nonprofit work m u c h of the money he earned as a consultant A r t s & Entertainment television featured h i m i n a special titled "Headhunters of the A m a z o n , " narrated by L e o n a r d N i m o y I t a l i a n C o s m o p o l i t a n ran a major article on his "Shapeshifting" workshops in Europe T I M E magazine selected D r e a m Change as one of the thirteen organizations i n the w o r l d whose Web sites best reflect the ideals a n d goals of E a r t h Day T h e n came September 11, 2001 The terrible events of that day convinced J o h n to drop the veil of secrecy around his life as an E H M , to ignore the threats a n d bribes, a n d to write C o n f e s s i o n s of a n E c o n o m i c H i t M a n H e came to believe i n his responsibility to share his insider knowledge about the role the U S government, multinational " a i d " organizations, and corporations have played i n b r i n g i n g the w o r l d to a place where such an event c o u l d occur H e wanted to expose the fact that E H M s are more ubiquitous today than ever before H e felt he owed this to his country, to his daughter, to a l l the people around the w o r l d who suffer because of the work he and his peers have done, a n d to himself In this book, he outlines the dangerous path his country is t a k i n g as it moves away from the original ideals of the A m e r i c a n republic a n d toward a quest for global empire Previous books by J o h n Perkins include S h a p e s / l i f t i n g , T h e W o r l d I s A s You D r e a m I t , P s y c h o n a v i g a t i o n , T h e S t r e s s - F r e e H a b i t , a n d S p i r i t o f the Shuar To learn more about John, to find out where he is lecturing, to order his books, or to contact h i m , please go to his Web site: www.JohnPerkins.org To discover more about the w o r k of D r e a m Change, the 501(c)3 nonprofit that is transforming global consciousness, please visit: www.dreamchange.org 250 Confessions of an Economic Hit Man