Explained: What is economics hitman? How does it work in the developing countries?

 The term "economic hitman" is often used to describe a person who is employed to persuade developing countries to take on large loans for infrastructure projects that they may not be able to afford. These infrastructure projects are often contracted out to multinational corporations who benefit financially from the construction and operation of the projects. The goal of this process is to create a cycle of debt that keeps the developing country dependent on the lender and the multinational corporations. The term was coined by John Perkins, a former economic hitman, who has written extensively about his experiences in this role.

John Perkins view : 

According to Perkins, the process of being an economic hitman involves first identifying a developing country that has valuable resources, such as oil or minerals, that could be exploited by multinational corporations. The economic hitman then approaches the leaders of the country and offers them large loans for infrastructure projects, such as power plants, highways, or airports. These loans often come with strings attached, such as requirements to use specific contractors or to privatize certain industries.

If the leaders of the country accept the loan, the infrastructure project is built by the contracted multinational corporations. However, the cost of the project is often much higher than necessary, due to inflated prices and kickbacks to the economic hitman and other intermediaries. As a result, the country is left with a large amount of debt that it may not be able to repay.

This cycle of debt is designed to keep the developing country dependent on the lender and the multinational corporations. If the country is unable to repay the loan, the lender may demand that the country implement austerity measures, such as cutting social services or privatizing public utilities, in order to meet its debt obligations. This can lead to economic instability, social unrest, and even political instability.

While the practice of using economic hitmen is not as prevalent in the present day as it was in the past, there are still concerns about the impact of development finance and multinational corporations on the economies of developing countries. Many organizations and individuals advocate for more equitable and sustainable approaches to development that prioritize the needs and well-being of local communities.

In recent years, there has been a growing awareness of the need to address economic inequality and promote economic justice both within and between countries. Some experts argue that this requires a fundamental rethinking of the way that development finance and multinational corporations operate, with a focus on promoting sustainable and equitable economic growth that benefits all members of society.

Overall, the use of economic hitmen is a controversial and complex issue that raises important questions about the role of multinational corporations in the global economy, the relationship between developed and developing countries, and the need for more equitable and sustainable approaches to economic development.

One of the challenges in addressing economic inequality and promoting economic justice is the power imbalance between developed and developing countries. Developed countries often hold significant economic and political power, which can make it difficult for developing countries to negotiate fair terms for loans and infrastructure projects. In addition, multinational corporations often have significant influence over the policies and decision-making processes of developing countries, which can further exacerbate power imbalances and limit the ability of these countries to pursue their own economic and social goals.

To address these challenges, some experts advocate for increased transparency and accountability in the development finance and multinational corporation sectors. This could include measures such as requiring lenders and corporations to disclose their financial transactions and operations, increasing public oversight and participation in decision-making processes, and promoting greater involvement of local communities in development projects.

There are also calls for increased investment in education, healthcare, and other social services in developing countries, which could help to promote economic growth and reduce poverty and inequality. This could involve working with local communities and governments to identify their own needs and priorities, and developing tailored solutions that meet these needs and promote sustainable development.

Ultimately, the issue of economic hitmen highlights the need for a more inclusive and equitable global economic system that prioritizes the needs and well-being of all people, regardless of where they live. While there is no easy solution to this complex issue, there are steps that governments, civil society organizations, and individuals can take to promote more sustainable and equitable economic development and reduce economic inequality and instability around the world.