Non-State United States Support For The Contras During The Reagan Era

Under President Ronald Reagan, the White House pursued a complex foreign policy towards the Contras, rebels in trying to overthrow the Sandinista regime in Nicaragua, in Nicaragua. In 1979, the leftist Sandinista government seized power in Nicaragua. The loss of the previous pro-United States Somoza military dictatorship deeply troubled the conservatives, for whom eradication of communism internationally was a top foreign policy goal. Consequently, the Reagan Administration sought to redress the policy of his predecessor, Jimmy Carter, and assume a hard line stance against leftist regimes in Central America. Reagan and the conservatives within his administration, therefore, supported the Contra through military arms, humanitarian aid, and financial contributions. This intervention in Nicaragua, however, failed to garner popular support from American citizens and Democrats. Consequently, between 1982 and 1984 Congress prohibited further funding to the Contras in a series of legislation called the Boland Amendments. These Amendments barred any military aid from reaching the Contras, including through intelligence agencies. Shortly after their passage, Central Intelligence Agency Director William Casey and influential members of Reagan¿s National Security Council (NSC) including National Security Advisor Robert McFarlane, NSC Aide Oliver North, and Deputy National Security Advisor John Poindexter cooperated to identify and exploit loopholes in the legislation. By recognizing the NSC as a non-intelligence body, these masterminds orchestrated a scheme in which third parties, including foreign countries and private donors, contributed both financially and through arms donations to sustain the Contras independently of Congressional oversight. This thesis explores the mechanism and process of soliciting donations from private individuals, recognizing the forces and actors that created a situation for covert action to continue without detection. Oliver North, the main actor of the state, worked within his role as an NSC bureaucrat to network with influential politicians and private individuals to execute the orders of his superiors and shape foreign policy. Although Reagan articulated his desire for the Contras to remain a military presence in Nicaragua, he delegated the details of policy to his subordinates, which allowed this scheme to flourish. Second, this thesis explores the individual donors, analyzing their role as private citizens in sustaining and encouraging the policy of the Reagan Administration. The Contra movement found non-state support from followers of the New Right, demonstrated through financial and organizational assistance, that allowed the Reagan Administration¿s statistically unpopular policy in Nicaragua to continue. I interpret these donors as politically involved, but politically philanthropic, individuals, donating to their charity of choice to further the principles of American freedom internationally in a Cold War environment. The thesis then proceeds to assess the balance of power between the executive and other political actors in shaping policy, concluding that the executive cannot act alone in the formulation and implementation of foreign policy.

The Intersection of Economics and Politics in a Small OPEC Country: the Case of Ecuador, 1990 - March 2014

Today, crude oil remains a vital resource all around the world. This non-renewable resource powers countries worldwide. Besides serving as an energy source, crude oil is also the most important component for different world economies, especially in developing countries. Ecuador, a small member of the OPEC oil cartel, presents a case where its economy is oil dependent. A great percentage of the country¿s GDP and government¿s budget comes from oil revenues. Ecuador has always been a primary exporter of raw materials. In the last centuries, the country experienced three important economic booms: cacao, bananas, and, ultimately, crude oil. In this sense, the country has not been able to fully industrialize and begin to export manufactured goods, i.e., Ecuador suffers from the Dutch disease. The latter has deterred Ecuador from achieving broad-based economic development. Given crude oil¿s importance for the Ecuadorian economy, the government has always tried to influence the oil industry in search of profits and benefits. Therefore, this thesis, explores the question: how and to what extent have political interventions affected the oil industry in Ecuador from 1990 until March 2014? In general, this thesis establishes an economic history context during the last twenty-four years, attempting to research how political interventions have shaped Ecuador¿s oil industry and economy. In the analysis, it covers a period where political instability prevailed, until Rafael Correa became president. The thesis examines Ecuador¿s participation in OPEC, trying to find explanations as to why the country voluntarily left the organization in 1992, only to rejoin in 2007 when Correa rose to power. During the ¿Revolución Ciudadana¿ period, the thesis researches reforms to the Law of Hydrocarbons, variations in the relations with other nations, the controversy surrounding the Yasuní-ITT oil block, and the ¿Refinería del Pacífico¿ construction. The thesis is an Industrial Organization detailed case study that analyzes, updates, and evaluates the intersection of economics and politics in Ecuador¿s crude oil industry during the last 24 years. In this sense I have consulted past theses, newspaper articles, books, and other published data about the petroleum industry, both from a global and Ecuadorian perspective. In addition to published sources, I was able to interview sociologists, public figures, history and economics academics, and other experts, accessing unique unpublished data about Ecuador¿s oil industry. I made an effort to collect information that shows the private and public side of the industry, i.e., from government-related and independent sources. I attempted to remain as objective as possible to make conclusions about the appropriate Industrial Organization policy for Ecuador¿s oil industry, addressing the issue from an economic, social, political, and environmental point of view. I found how Ecuador¿s political instability caused public policy to fail, molding the conduct and market structure of the crude oil industry. Throughout history, developed nations have benefited from low oil prices, but things shifted since oil prices began to rise, which is more beneficial for the developing nations that actually possess and produce the raw material. Nevertheless, Ecuador, a victim of the Dutch disease due to its heavy reliance on crude oil as a primary product, has not achieved broad-based development.