One day a man in a business suit, Einar Greve, landed at the airstrip in our community. He was a vice president at Chas. T. Main, Inc. (MAIN), an international consulting firm that kept a very low profile and was in charge of studies to determine whether the World Bank should lend Ecuador and its neighboring countries billions of dollars to build hydroelectric dams and other infrastructure projects. Einar also was a colonel in the US Army Reserve.
He started talking with me about the benefits of working for a company like MAIN. When I mentioned that I had been accepted by the NSA before joining the Peace Corps, and that I was considering going back to them, he informed me that he sometimes acted as an NSA liaison; he gave me a look that made me suspect that part of his assignment was to evaluate my capabilities. I now believe that he was updating my profile, and especially sizing up my abilities to survive in environments most North Americans would find hostile.
We spent a couple of days together in Ecuador and afterward communicated by mail. He asked me to send him reports assessing Ecuador’s economic prospects. I had a small portable typewriter, loved to write, and was quite happy to comply with this request. Over a period of about a year, I sent Einar at least fifteen long letters. In these letters, I speculated on Ecuador’s economic and political future and appraised the growing frustration among the indigenous communities as they struggled to confront oil companies, international development agencies, and other attempts to draw them into the modern world.
When my Peace Corps tour was over, Einar invited me to a job interview at MAIN headquarters in Boston. During our private meeting, he emphasized that MAIN’s primary business was engineering but that his biggest client, the World Bank, recently had begun insisting that he keep economists on staff to produce the critical economic forecasts used to determine the feasibility and magnitude of engineering projects. He confided that he had previously hired three highly qualified economists with impeccable credentials — two with master’s degrees and one with a PhD. They had failed miserably.
“None of them,” Einar said, “can handle the idea of producing economic forecasts in countries where reliable statistics aren’t available.” He went on to tell me that, in addition, all of them had found it impossible to fulfill the terms of their contracts, which required them to travel to remote places in countries such as Ecuador, Indonesia, Iran, and Egypt, to interview local leaders, and to provide personal assessments about the prospects for economic development in those regions. One had suffered a nervous breakdown in an isolated Panamanian village; he was escorted by Panamanian police to the airport and put on a plane back to the United States.
“The letters you sent me indicate that you don’t mind sticking your neck out, even when hard data isn’t available. And given your living conditions in Ecuador, I’m confident you can survive almost anywhere.” He told me that he already had fired one of those economists and was prepared to do the same with the other two, if I accepted the job.
So it was that in January 1971 I was offered a position as an economist with MAIN. I had turned twenty-six — the magical age when the draft board no longer wanted me. I consulted with Ann’s family; they encouraged me to take the job, and I assumed this reflected Uncle Frank’s attitude as well. I recalled him mentioning the possibility that I would end up working for a private firm. Nothing was ever stated openly, but I had no doubt that my employment at MAIN was a consequence of the arrangements Uncle Frank had made three years earlier, in addition to my experiences in Ecuador and my willingness to write about that country’s economic and political situation.
My head reeled for several weeks, and I had a very swollen ego. I had earned only a bachelor’s degree from BU, which did not seem to warrant a position as an economist with such a lofty consulting company. I knew that many of my BU classmates who had been rejected by the draft and had gone on to earn MBAs and other graduate degrees would be overcome with jealousy. I visualized myself as a dashing secret agent, heading off to exotic lands, lounging beside hotel swimming pools, surrounded by gorgeous bikini-clad women, martini in hand.
Although this was merely fantasy, I would discover that it held elements of truth. Einar had hired me as an economist, but I was soon to learn that my real job went far beyond that, and that it was in fact closer to James Bond’s than I ever could have guessed.
CHAPTER 3
“In for Life”
In legal parlance, MAIN would be called a closely held corporation; roughly 5 percent of its two thousand employees owned the company. These were referred to as partners or associates, and their position was coveted. Not only did the partners have power over everyone else, but also they made the big bucks. Discretion was their hallmark; they dealt with heads of state and other chief executive officers who expected their consultants, like their attorneys and psychotherapists, to honor a strict code of absolute confidentiality. Talking with the press was taboo. It simply was not tolerated. As a consequence, hardly anyone outside MAIN had ever heard of us, although many were familiar with our competitors, such as Arthur D. Little, Stone & Webster, Brown & Root, Halliburton, and Bechtel.
I use the term competitors loosely, because in fact MAIN was in a league by itself. The majority of our professional staff was engineers, yet we owned no equipment and never constructed so much as a storage shed. Many MAINers were ex-military; however, we did not contract with the Department of Defense or with any of the military services. Our stock-in-trade was something so different from the norm that during my first months there even I could not figure out what we did. I knew only that my first real assignment would be in Indonesia, and that I would be part of an eleven-man team sent to create a master energy plan for the island of Java.
I also knew that Einar and others who discussed the job with me were eager to convince me that Java’s economy would boom, and that if I wanted to distinguish myself as a good forecaster (and to therefore be offered promotions), I would produce projections that demonstrated as much.
“Right off the chart,” Einar liked to say. He would glide his fingers through the air and up over his head. “An economy that will soar like a bird!”
Einar took frequent trips that usually lasted only two to three days. No one talked much about them or seemed to know where he had gone. When he was in the office, he often invited me to sit with him for a few minutes over coffee. He asked about Ann, our new apartment, and the cat we had brought with us from Ecuador. I grew bolder as I came to know him better, and I tried to learn more about him and what I would be expected to do in my job. But I never received answers that satisfied me; he was a master at turning conversations around. On one such occasion, he gave me a peculiar look.
“You needn’t worry,” he said. “We have high expectations for you. I was in Washington recently . . .” His voice trailed off and he smiled inscrutably. “In any case, you know we have a big project in Kuwait. It’ll be a while before you leave for Indonesia. I think you should use some of your time to read up on Kuwait. The Boston Public Library is a great resource, and we can get you passes to the MIT and Harvard libraries.”
After that, I spent many hours in those libraries, especially in the BPL, which was located a few blocks away from the office and very close to my Back Bay apartment. I became familiar with Kuwait as well as with many books on economic statistics, published by the United Nations, the International Monetary Fund, and the World Bank. I knew that I would be expected to produce econometric models for Indonesia and Java, and I decided that I might as well get started by doing one for Kuwait.
However, my BS in business administration had not prepared me as an econometrician, so I spent a lot of time trying to figure out how to go about it. I went so far as to enroll in a couple of courses on the subject. In the process, I discovered that statistics can be manipulated to produce a large array of conclusions, including those substantiating the predilections of the analyst.
MAIN was a macho corporation; only four women held professional positions in 1971. However, there wer
e perhaps two hundred women divided between the cadres of personal secretaries — every vice president and department manager had one — and the steno pool, which served the rest of us. I had become accustomed to this gender bias, and I was therefore especially astounded by what happened one day in the BPL’s reference section.
A self-assured businesswoman strode over to me and sat in a chair across the table. In her dark-green business suit, she looked very sophisticated. I judged her to be several years my senior, but I tried to focus on not noticing her, on acting indifferent. After a few minutes, without a word, she slid an open book in my direction. It contained a table with information I had been searching for about Kuwait — and a card with her name, Claudine Martin, and her title, Special Consultant to Chas. T. Main, Inc. I looked up into her soft green eyes, and she extended her hand.
“I’ve been asked to help in your training,” she said. I could not believe this was happening to me.
Beginning the next day, we met in Claudine’s Beacon Street apartment, a few blocks from MAIN’s Prudential Center headquarters. During our first hour together, she explained that my position was an unusual one and that we needed to keep everything highly confidential. Then she laughed self-consciously and informed me that her assignment was to mold me into an economic hit man.
The very name awakened old cloak-and-dagger dreams. I was embarrassed by my own nervous laughter. She smiled and assured me that humor was one of the reasons they used the term. “Who would take it seriously?” she asked.
I confessed ignorance about the role of economic hit men.
“You’re not alone,” she said, and for a moment I thought I caught a glimpse of a crack in her self-confidence. “We’re a rare breed, in a dirty business. No one can know about your involvement — not even your wife.” Then she turned serious. “I’ll be very frank with you, teach you all I can during the next weeks. Then you’ll have to choose. Your decision is final. Once you’re in, you’re in for life.” After that, she seldom used the full name; we were simply EHMs.
I know now what I did not then — that Claudine took full advantage of the personality weaknesses the NSA profile had disclosed about me. I do not know who supplied her with the information — Einar, the NSA, MAIN’s personnel department, or someone else — only that she used it masterfully. Her approach, a combination of physical seduction and verbal manipulation, was tailored specifically for me, and yet it fit within the standard operating procedures I have since seen used by a variety of businesses when the stakes are high and the pressure to close lucrative deals is great. Claudine and her superiors knew from the start that I would not jeopardize my marriage by disclosing our clandestine activities. And she was brutally frank when it came to describing the shadowy side of things that would be expected of me.
I have no idea who paid her salary, although I have no reason to suspect that it was not, as her business card implied, MAIN. At the time, I was too naive, intimidated, and bedazzled to ask the questions that today seem so obvious.
Claudine told me that there were two primary objectives of my work. First, I was to justify huge international loans that would funnel money back to MAIN and other US companies (such as Bechtel, Halliburton, Stone & Webster, and Brown & Root) through massive engineering and construction projects. Second, I would work to bankrupt the countries that received those loans (after they had paid MAIN and the other US contractors, of course), so that they would be forever beholden to their creditors and would present easy targets when we needed favors, such as military bases, UN votes, or access to oil and other natural resources.
My job, she said, was to forecast the effects of investing billions of dollars in a country. Specifically, I would produce studies that projected economic growth twenty to twenty-five years into the future and that evaluated the impacts of a variety of projects. For example, if a decision was made to lend a country $1 billion to persuade its leaders not to align with the Soviet Union, I would compare the benefits of investing that money in power plants with the benefits of investing in a new national railroad network or a telecommunications system. Or I might be told that the country was being offered the opportunity to receive a modern electric utility system, and it would be up to me to demonstrate that such a system would result in sufficient economic growth to justify the loan. The critical factor, in every case, was gross national product. The project that resulted in the highest average annual growth of GNP won. If only one project was under consideration, I would need to demonstrate that developing it would bring superior benefits to the GNP.
The unspoken aspect of every one of these projects was that they were intended to create large profits for the contractors, and to make a handful of wealthy and influential families in the receiving countries very happy, while assuring the long-term financial dependence and therefore the political loyalty of governments around the world. The larger the loan, the better. The fact that the debt burden placed on a country would deprive its poorest citizens of health care, education, and other social services for decades to come was not taken into consideration.
Claudine and I openly discussed the deceptive nature of GNP. For instance, GNP may show growth even when it profits only one person, such as an individual who owns a utility company, and even if the majority of the population is burdened with debt. The rich get richer and the poor grow poorer. Yet, from a statistical standpoint, this is recorded as economic progress.
Like US citizens in general, most MAIN employees believed we were doing countries favors when we built power plants, highways, and ports. Our schools and our press have taught us to perceive all of our actions as altruistic. Over the years, I’ve repeatedly heard comments like, “If they’re going to burn the US flag and demonstrate against our embassy, why don’t we just get out of their damn country and let them wallow in their own poverty?”
I now know that people who say such things often hold diplomas certifying that they are well educated. However, these people have no clue that the main reason we establish embassies around the world is to serve our own interests, which during the last half of the twentieth century meant creating history’s first truly global empire — a corporate empire supported and driven by the US government. Despite their credentials, such people are as uneducated as those eighteenth-century colonists who believed that the Indians fighting to defend their lands were servants of the devil.
Within several months, I would leave for the island of Java in the country of Indonesia, described at that time as the most heavily populated piece of real estate on the planet. Indonesia also happened to be an oil-rich Muslim nation and a hotbed of Communist activity.
“It’s the next domino after Vietnam,” is the way Claudine put it. “We must win the Indonesians over. If they join the Communist bloc, well . . .” She drew a finger across her throat and then smiled sweetly. “Let’s just say you need to come up with a very optimistic forecast of the economy, how it will mushroom after all the new power plants and distribution lines are built. That will allow USAID and the international banks to justify the loans. You’ll be well rewarded, of course, and can move on to other projects in exotic places. The world is your shopping cart.” She went on to warn me that my role would be tough. “Experts at the banks will come after you. It’s their job to punch holes in your forecasts — that’s what they’re paid to do. Making you look bad makes them look good.”
One day I reminded Claudine that the MAIN team being sent to Java included ten other men. I asked if they all were receiving the same type of training as me. She assured me they were not.
“They’re engineers,” she said. “They design power plants, transmission and distribution lines, and seaports and roads to bring in the fuel. You’re the one who predicts the future. Your forecasts determine the magnitude of the systems they design — and the size of the loans. You see, you’re the key.”
Every time I walked away from Claudine’s apartment, I wondered whether I was doing the wrong thing. Somewhere in my heart, I suspected
I was. But the frustrations of my past lingered. MAIN seemed to offer everything my life had lacked. In the end, I convinced myself that by learning more, by experiencing it, I could better expose it later — the old “working from the inside” justification.
When I shared this idea with Claudine, she gave me a perplexed look. “Don’t be ridiculous. Once you’re in, you can never get out. You must decide for yourself, before you get in any deeper.” I understood her, and what she said frightened me. After I left, I strolled down Commonwealth Avenue, turned onto Dartmouth Street, and assured myself that I was the exception.
One afternoon some months later, Claudine and I sat on a window settee watching the snow fall on Beacon Street. “We’re a small, exclusive club,” she said. “We’re paid — well paid — to cheat countries around the globe out of billions of dollars. A large part of your job is to encourage world leaders to become part of a vast network that promotes US commercial interests. In the end, those leaders become ensnared in a web of debt that ensures their loyalty. We can draw on them whenever we desire — to satisfy our political, economic, or military needs. In turn, these leaders bolster their political positions by bringing industrial parks, power plants, and airports to their people. Meanwhile, the owners of US engineering and construction companies become very wealthy.”
That afternoon, in the idyllic setting of Claudine’s apartment, relaxing in the window while snow swirled around outside, I learned the history of the profession I was about to enter. Claudine described how, throughout most of history, empires were built largely through military force or the threat of it. But with the end of World War II, the emergence of the Soviet Union, and the specter of nuclear holocaust, the military solution became just too risky.
The decisive moment occurred in 1951, when Iran rebelled against a British oil company that was exploiting Iran’s natural resources and its people. The company was the forerunner of British Petroleum, today’s BP. In response, the highly popular, democratically elected Iranian prime minister (and Time magazine’s Man of the Year in 1951), Mohammad Mossadegh, nationalized all Iranian petroleum assets. An outraged England sought the help of her World War II ally, the United States. However, both countries feared that military retaliation would provoke the Soviet Union into taking action on behalf of Iran.