The Development Of Modern Honduras: 1932-1963
With the 1932 election of National Party president Tiburcio Carias Andino were laid the foundations for the modern state of Honduras. A virtual dictator for sixteen years until he was forced to step down in 1948, Carias strengthened the armed forces and cracked down on political opposition, the press and trade unions. Conversely, his economic austerity programme succeeded in balancing the economy and his authoritarian leadership forged a new national cohesion. His successor, Juan Manuel Galvez , set up a central bank, a public service sector, and expanded the nascent export industry of coffee, sugar and light manufacturing. This strengthened government was thus better placed to deal with the worst excesses of the banana companies, reflected in the Banana Strike of May 1954. Originating with Puerto Cortes dockers, the strike spread to 35,000 United and Standard Fruit workers, and then to workers in other industries. Ended by a settlement in early July, thrashed out between government, employers and unions, most demands went unrecognized. The two main achievements of the strikers, however - legitimization of labour unions and the drafting of an enduring framework of labour protection laws - made the strike a watershed in Honduran history. A coup in October 1956 introduced the military as a new element into the hierarchy of power. Though civilian government resumed in 1957, with the election of Liberal Ramon Villeda Morales, a new constitution the same year gave the armed forces the right to disregard presidential orders they perceived to be unconstitutional, strengthening vastly the position of the military and affecting the development of the state over the next twenty years.
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