Confronting a catch-22: the Guatemalan coffee economy during the era of the international coffee agreement, 1962-1989
Johnson, David Conrad
Johnson, David Conrad
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2005
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Abstract
Although coffee is the second most valuable commodity exported from the tropics, Latin American historians have not fully examined the linkage between its trade and domestic production. This relationship is important because throughout the twentieth century, two features of the international coffee trade significantly influenced the ability of a farmer to profit. The first connection between trade and domestic production was a chronic oversupply of coffee. Too much coffee on the world market led to low prices and stagnant coffee economies. The second link between trade and domestic production was supply shock. Periodic droughts, frosts, and wars led to sudden decreases in the supply of coffee. These cyclical events caused a rapid escalation of prices. This boom-bust cycle of oversupply followed by supply shock wrought havoc on the coffee economies of Latin America. Two organizations determined how the Central American nation of Guatemala responded to these two structural flaws in the international coffee trade. From 1962 through 1989, the International Coffee Organization established the rules of trade. During this same period, the Guatemalan National Coffee Association implemented these rules and created domestic production policies. While researching this project, two findings became apparent. The International Coffee Organization successfully reduced both overproduction and supply shock. Yet within Guatemala, only a select few were able to benefit. Organizations can control and utilize the forces of globalization for the benefit of their members. But it is incumbent on an organization to give all their members the tools to compete in a globalized marketplace. The Guatemalan National Coffee Association failed to do this, and only a small percentage of farmers who understood how trade influenced domestic production were able to profit.
Contents
Subject
Subject(s)
International Coffee Organization (1962- )
Asociación Nacional del Café (Guatemala)International Coffee Agreement--(1962)Coffee industry--Guatemala--History--20th century
Asociación Nacional del Café (Guatemala)International Coffee Agreement--(1962)Coffee industry--Guatemala--History--20th century
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Dissertation
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viii, 181 leaves
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History