In political science, a banana republic is a term that has been widely used to refer to a country that is politically unstable with an economy that relies heavily on exporting a limited number of products such as bananas. It characteristically has social classes that are stratified including a big, disadvantaged working class and a reigning plutocracy of political, military and business elites. This oligarchy of the economy and politics controls the basic-sector products to use the economy of the country.
Where banana republics came from
The term “banana republic” was formed by one American writer, Henry whose imaginations and idea was to define the fictional Anchuria republic included in the Cabbages and Kinds book of 1904. This was a collection of short stories that had similar themes heavily inspired through the author’s experiences in Honduras, at a time when was wanted in America for embezzling a bank. The term infiltrated into political science to describe pejoratively, the submissive dictatorship that supports kickbacks, the use of large-scale agricultural plantations, particularly in the growing of bananas.
For economics, a banana republic purely defined a nation that operated as a commercial enterprise only to gain private profit, made possible through collusion between the favored monopolies and the state whether the profit realized from the secret exploitation of public property and lands becomes private assets as the debts being realized become a responsibility of the public masses. This presents an imbalanced economy that is forever limited through the uneven development of the economy of a country or even a town and inclines to the cause of the currency of the nation to become paper money that is devalued. This ultimately makes the country ineligible for global-development credit.
The original examples of banana republics
The banana republics date back to the cases of Guatemala and Honduras. Well, it all started with the introduction of the banana fruit to the United States of America back in 1870. He first bought these bananas in Jamaica and came to sell them in Boston at an unimaginable profit of 1000%. Following this development, the banana appeared to be a very popular fruit among the people of the United States because of its nutritious nature and was comparatively less expensive than other local fruits like apples that were grown within the U.S locality. By the year 1913, while twenty five cents could only buy two apples, it was possible to get a dozen bananas. Nations started to export bananas and with time, the name of “banana republics” grew in popularity.