A banana republic is a politically unstable country whose economy depends on the export of one product in limited supply, such as bananas or minerals. A banana republic has social classes that are divided by wealth. These include a large, poor working class and a small ruling class made up of the businessmen, politicians, and the military. The ruling class controls and exploits the country's economy.

Characteristics of a Banana Republic

The way the phrase banana republic is used has evolved since it was introduced more than a century ago. It is no longer limited to countries in Central America or the tropics. Key characteristics of a banana republic in the modern world include:

  • Widespread government corruption
  • Tyrannical government
  • Unstable government
  • Civil unrest
  • Coup attempts/insurgency
  • Economic dependency on exporting a limited natural resource (which may or may not be bananas)
  • Infrastructure owned/supported by out-of-country interests
  • Overall economic dependency on foreign investment or business entities
  • Widespread poverty
  • Significant stratification of social classes
  • Enormous gap between the haves and have nots
  • Lack of a middle class

Examples of Banana Republics

In the modern world, whether or not a country could accurately be described as a banana republic government is a matter of opinion. A number of countries have been described as banana republics at some point.

A country that at some point might exhibit all of the characteristics of a banana republic could change, which would mean that the term would no longer apply. The fact that someone refers to a country as a banana republic does not mean that the country really is one. Remember that the phrase is a derogatory description rather than an actual type of government.