
In
Arévalo put forward many reforms and created numerous governmentally-funded
institutions which he modeled after those of socialist countries. Nepotism
and corruption were wide-spread within his administration, perpetuating the
myth that this is the generalized modus operandi in the majority of
Latin-American countries.
The reforms initiated by Arévalo were continued by his successor, Jacobo
Arbenz Guzmán. On having come to the power, Arbenz declared his intentions:
“We will enter history, continuing the ideology of Marx and his system of
dictatorship of the proletariat”.
Arbenz policy included an agrarian reform intended to expropriate
unproductive land that would be given to the peasants for their usufruct. A
direct attack against the United Fruit Company's interests, Arbenz agrarian
reform intended to increase land productivity and to improve the general
standard of living failed noticeably.
The United Fruit Company looked for the support of President Eisenhower
arguing that Arbenz had
legalized the communist Guatemalan Labor Party, which was receiving funds
from the
In response, the CIA (with close ties to the United Fruit Company),
organized “Operation
PBSUCCESS”, which consisted of the training and financing of a rebellious
paramilitary army (Movimiento de Liberacion) that then staged a coup
d'état in 1954 thereby ending Árbenz's rule. He was later exiled to
Czechoslovakia, Cuba, The U.S.S.R, and finally committed suicide in Mexico.
