This chapter begins by comparing the developmental ecologies of bananas and coffee, showing how banana production for export has tended to arise on capital-intensive and fully proletarianized plantations dominated by vertically integrated transnational fruit companies. The spread of proletarianized and peripheralized banana regimes in the early part of the twentieth century generated local labor unrest throughout the banana-producing regions of Latin America, but this unrest was largely quelled by partnerships between authoritarian governments and the banana companies. This partnership unraveled as British world hegemony collapsed in the 1930s and 1940s. However, the world banana market was reconstructed under US world hegemony through a process of vertical disintegration that transformed banana transnationals into buyers/distributors and created spaces for the formation of local banana exporters through domestic development initiatives. In Colombia, this process transformed Urabá’s banana zone into a key site of development, but it only permitted entrance into a peripheral niche of the market. Collective action strategies akin to the ICA for coffee failed to generate opportunities for upgrading, pressuring Colombia’s banana planter-exporters to become heavily reliant upon the authoritarian practices of the National Front regime to quell worker unrest and maintain labor control on Urabá’s banana plantations.

This chapter traces the origins of Fedecafé’s hegemonic labor regime in Viejo Caldas. It begins by showing how Colombian coffee producers adapted to a peripheral niche of the world coffee market during the era of British hegemony, with semi-marketized small farmers better able to cope with the volatility of prices in the coffee market than large-scale planters that used various proletarianized labor systems. It then shows how Fedecafé emerged as a parastatal development organization charged with consolidating a profitable export sector based upon smallholding farmers. In doing so, it shows how Fedecafé instituted a regulatory social compact (Pacto Cafetero) that protected farmers from the volatility of the market and thus facilitated their conversion into fully proletarianized (market-dependent) farmers. It ends with a discussion of whether the Pacto Cafetero was effective in generating a hegemonic labor regime in Viejo Caldas into the postwar decades.