To most problem repeatedly confronted by the USA. OUR PLAN is identical to President Kennedy's NEW FRONTIER. That is, WESTERN HEMISPHERE peace and prosperity through ECONOMIC INTEGRATION within THE COMMON MARKET OF THE AMERICAS. Utilizing the principles of FREE ENTERPRISE CAPITALISM, DEMOCRATIC GOVERNMENT AND PROTECTION OF LIBERTY.
Address at a White House Reception for Members of Congress and for the Diplomatic Corps of the Latin American Republics
President John F. Kennedy
March 13, 1961 [Excerpts]
It is a great pleasure ... for me, to welcome the Ambassadorial Corps of our Hemisphere, our long time friends, to the White House today. One hundred and thirty-nine years ago this week the United States, ... urged the independence and recognition of the new Latin American Republics. It was then, ..., that Bolivar spoke of his desire to see the Americas fashioned into the greatest region in the world, "greatest," he said, "not so much by virtue of her area and her wealth, as by her freedom and her glory."
Never in the long history of our hemisphere has this dream been nearer to fulfillment, and never has it been in greater danger. ... The genius of our scientists has given us the tools to bring abundance to our land, strength to our industry, and knowledge to our people. ... [W]e have the capacity to strike off the remaining bonds of poverty and ignorance -- to free our people for the spiritual and intellectual fulfillment ... the goal of our civilization. ... Yet ... , we confront the same forces which have imperiled America throughout its history -- ... which once again seek to impose the despotisms of the Old World ... .
I have asked you to come here today so that I might discuss these challenges and these dangers.
We meet together as ... friends, united by history and experience and ... determination to advance the values of American civilization. For this New World of ours is not a mere accident of geography. Our continents are bound together by a common history, the endless exploration of new frontiers. Our nations are the product of a common struggle, the revolt from colonial rule. And our people share a common heritage, the quest for the dignity and the freedom of man. ... The revolutions ... ignited, in the words of Thomas Paine, "a spark never to be extinguished." And ... also remember that our own struggle -- the revolution which began in Philadelphia in 1776, and in Caracas in 1811 -- is not yet finished. Our hemisphere's mission is not yet completed.
... For our unfulfilled task is to demonstrate to the entire world that man's unsatisfied aspiration for economic progress and social justice can best be achieved by free men working within a framework of democratic institutions. If we can do this in our own hemisphere, and for our own people, we may yet realize the prophecy of the great Mexican patriot, Benito Juarez, that "democracy is the destiny of future humanity."
... [L]et me be the first to admit that we North Americans have not always grasped the significance of this common mission, just as ... many in your own countries have not fully understood the urgency ... to lift people from poverty and ignorance and despair. But we must turn from these mistakes ... of the past to a future full of peril, but bright with hope.
Throughout Latin America, a continent rich in resources ... millions ... suffer the daily degradations of poverty and hunger. They lack decent shelter or protection from disease. Their children are deprived of the education or the jobs which are the gateway to a better life. ... Population growth is outpacing economic growth -- low living standards ... -- the discontent of a people who know that abundance and the tools of progress are at last within their reach -- that discontent is growing. ...
If we are to meet a problem so staggering in its dimensions, our approach must itself be equally bold -- an approach consistent with [a] majestic concept ... Therefore I have called on all people of the hemisphere to join in a new Alliance for Progress -- ... --a vast cooperative effort, unparalleled in magnitude and nobility of purpose, to satisfy the basic needs of the American people for homes, work and land, health and schools ...
First, I propose that the American Republics begin on a vast new Ten Year Plan for the Americas, a plan to transform the 1960's into a historic decade of democratic progress. ... These 10 years will be the years of maximum progress-maximum effort, the years when the greatest obstacles must be overcome, the years when the need for assistance will be the greatest. ... And if we are successful, if our effort is bold enough and determined enough, then the close of this decade will mark the beginning of a new era in the American experience. The living standards of every American family will be on the rise, basic education will be available to all, hunger will be a forgotten experience, the need for massive outside help will have passed, most nations will have entered a period of self-sustaining growth, and though there will be still much to do, every American Republic will be the master of its own revolution and its own hope and progress.
Let me stress that only the most determined efforts of the American nations themselves can bring success to this effort. They, and they alone, can mobilize their resources, enlist the energies of their people, and modify their social patterns so that all, and not just a privileged few, share in the fruits of growth. If this effort is made, then outside assistance will give vital impetus to progress; without it, no amount of help will advance the welfare of the people. ... Thus if the countries of Latin America are ready to do their part, and I am sure they are, then I believe the United States, for its part, should help provide resources of a scope and magnitude sufficient to make this bold development plan a success -- just as we helped to provide, against equal odds nearly, the resources adequate to help rebuild the economies of Western Europe. For only an effort of towering dimensions can ensure fulfillment of our plan for a decade of progress.
Secondly, I will shortly request a ministerial meeting of the Inter-American Economic and Social Council, a meeting at which we can begin the massive planning effort which will be at the heart of the Alliance for Progress. ... For if our Alliance is to succeed, each Latin nation must formulate long-range plans for its own development, plans which establish targets and priorities, ensure monetary stability, establish the machinery for vital social change, stimulate private activity and initiative, and provide for a maximum national effort. These plans will be the foundation of our development effort, and the basis for the allocation of outside resources. ... A greatly strengthened IA-ECOSOC, working with the Economic Commission for Latin America and the Inter-American Development Bank, can assemble the leading economists and experts of the hemisphere to help each country develop its own development plan -- and provide a continuing review of economic progress in this hemisphere.
Third, I have this evening signed a request to the Congress for $500 million as a first step in fulfilling the Act of Bogotá. This is the first large-scale Inter-American effort, instituted by my predecessor President Eisenhower, to attack the social barriers which block economic progress. The money will be used to combat illiteracy, improve the productivity and use of their land, wipe out disease, attack archaic tax and land tenure structures, provide educational opportunities, and offer a broad range of projects designed to make the benefits of increasing abundance available to all. We will begin to commit these funds as soon as they are appropriated.
Fourth, we must support all economic integration which is a genuine step toward larger markets and greater competitive opportunity. The fragmentation of Latin American economies is a serious barrier to industrial growth. Projects such as the Central American common market and free trade areas in South America can help to remove these obstacles.
Fifth, the United States is ready to cooperate in serious, case-by-case examinations of commodity market problems. Frequent violent change in commodity prices seriously injure the economies of many Latin American countries, draining their resources and stultifying their growth. Together we must find practical methods of bringing an end to this pattern.
Sixth, we will immediately step up our Food for Peace emergency program, help establish food reserves in areas of recurrent drought, help provide school lunches for children, and offer feed grains for use in rural development. For hungry men and women cannot wait for economic discussions or diplomatic meetings -- their need is urgent -- and their hunger rests heavily on the conscience of their fellow men.
Seventh, all the people of the hemisphere must be allowed to share in the expanding wonders of science -- wonders which have captured man's imagination, challenged the powers of his mind, and given him the tools for rapid progress. I invite Latin American scientists to work with us in new projects in fields such as medicine and agriculture, physics and astronomy, and desalinization, to help plan for regional research laboratories in these and other fields, and to strengthen cooperation between American universities and laboratories. ... We also intend to expand our science teacher training programs to include Latin American instructors, ...
Eighth, we must rapidly expand the training of those needed to man the economies of rapidly developing countries. This means expanded technical training programs, for which the Peace Corps, for example, will be available when needed. It also means assistance to Latin American universities, graduate schools, and research institutes. ... We welcome proposals in Central America for intimate cooperation in higher education ...
Ninth, we reaffirm our pledge to come to the defense of any American nation whose independence is endangered. As its confidence in the collective security system of the OAS spreads, it will be possible to devote to constructive use a major share of those resources now spent on the instruments of war. ...
Tenth, we invite our friends in Latin America to contribute to the enrichment of life and culture in the United States. ... and contribute to understanding and mutual respect among the nations of the hemisphere.
With steps such as these, we propose to complete the revolution of the Americas, to build a hemisphere where all men can hope for a suitable standard of living, and all can live out their lives in dignity and in freedom.
To achieve this goal political freedom must accompany material progress. Our Alliance for Progress is an alliance of free governments, and it must work to eliminate tyranny from a hemisphere in which it has no rightful place. Therefore let us express our special friendship to the people of Cuba and the Dominican Republic -- and the hope they will soon rejoin, the society of free men, uniting with us in common effort.
This political freedom must be accompanied by social change. For unless necessary social reforms, including land and tax reform, are freely made -- unless we broaden the opportunity for all of our people -- unless the great mass of Americans share in increasing prosperity -- then our alliance, our revolution, our dream, and our freedom will fail. But we call for social change by free men change in the spirit of Washington and Jefferson, of Bolivar and San Martin and Martin -- not change which seeks to impose on men tyrannies which we cast out a century and a half ago. Our motto is what it has always been -- progress yes, tyranny no ...!
But our greatest challenge comes from within -- the task of creating an American civilization where spiritual and cultural values are strengthened by an ever-broadening base of material advance -- where, within the rich diversity of its own traditions, each nation is free to follow its own path towards progress.
The completion of our task will, of course, require the efforts of all governments of our hemisphere. But the efforts of governments alone will never be enough. In the end, the people must choose and the people must help themselves.
And so I say to the men and women of the Americas -- to the campesino in the fields, to the obrero in the cities, to the estudiante in the schools -- prepare your mind and heart for the task ahead -- call forth your strength and let each devote his energies to the betterment of all, so that your children and our children in this hemisphere can find an ever richer and a freer life.
Let us once again transform the American continent into a vast crucible of revolutionary ideas and efforts -- a tribute to the power of the creative energies of free men and women -- an example to all the world that liberty and progress walk hand in hand. Let us once again awaken our American revolution until it guides the struggle of people everywhere -- not with an imperialism of force or fear -- but the rule of courage and freedom and hope for the future of man.
The text of the Act of Bogotá, adopted September 13, 1960, by a Special Committee to Study the Formulation of New Measures for Economic Cooperation, is published in the Department of State Bulletin (vol. 43, p. 537)
The Alliance for Progress (Alianza para el Progreso) initiated by President John F. Kennedy in 1961 aimed to establish that economic cooperation between North and South America. The aid was intended to counter the emerging communist threat from Cuba.
Contents
Origin and goals
In March 1961, US President Kennedy proposed a ten-year plan for Latin America: ..we propose to complete the revolution of the Americas, to build a hemisphere where all men can hope for a suitable standard of living and all can live out their lives in dignity and in freedom... to build a hemisphere where all men can hope for a suitable standard of living and all can live out their lives in dignity and in freedom. To achieve this goal political freedom must accompany material progress...Let us once again transform the American Continent into a vast crucible of revolutionary ideas and efforts, a tribute to the power of the creative energies of free men and women, an example to all the world that liberty and progress walk hand in hand. Let us once again awaken our American revolution until it guides the struggles of people everywhere-not with an imperialism of force or fear but the rule of courage and freedom and hope for the future of man.[1]
The program was signed at an inter-American conference at Punta del Este, Uruguay, in Aug., 1961. The charter called for:
an annual increase of 2.5% in per capita income,
the establishment of democratic governments,
the elimination of adult illiteracy by 1970
price stability, to avoid inflation or deflation
more equitable income distribution, land reform, and
First, the plan called for Latin American countries to pledge a capital investment of $80 billion over 10 years. The United States agreed to supply or guarantee $20 billion within one decade.[4]Second, Latin American delegates required the participating countries to draw up comprehensive plans for national development. These plans were then to be submitted for approval by an inter-American board of experts. Third, tax codes had to be changed to demand "more from those who have most" and land reform was to be implemented. [5
US aid to Latin America
Because of the program economic assistance to Latin America nearly tripled between fiscal year 1960 and fiscal year 1961. Between 1962 and 1967 the US supplied $1.4 billion per year to Latin America. If new investment was included, this amount rose to $3.3 billion per year. ... But economic aid to Latin America dropped sharply in the late 1960's, especially when Richard Nixon entered the White House.[6] ...Authors L. Ronald Scheman and Tony Smith state that the amount of aid totaled $22.3 billion.[7] ...But this amount was not necessarily net transfers of resources and development. Latin American countries still had to pay off their debt to the US and other first world countries. ... In addition, profits usually returned to the US, and profits frequently exceeded new investment.
In March 1969, the US ambassador to the OAS, William T. Denzer explained to the House Committee on Foreign Affairs: "When you look at net capital flows and their economic effect, and after all due credit is given to the U.S. effort to step up support to Latin America, one sees that not that much money has been put into Latin America after all."[
Business lobbying
The alliance charter included a clause encouraged by US policy makers that committed the Latin American governments to the promotion "of conditions that will encourage the flow of foreign investments" to the region. ... Domestic industries lobbied Congress to amend the Foreign Assistance Act of 1961 to ensure that US aid would not be furnished to any foreign business that could compete with US business "unless the country concerned agrees to limit the export of the product to the US to 20 percent of output". In addition the industries lobbied Congress to limit all purchases of AID machinery and vehicles in the US. A 1967 study of AID showed that 90 percent of all AID commodity expenditures went to US corporations.[9]
Success and failures of the plan
Regional output in Latin America in the 1960s was 2.4 percent, nearly matching the Alliance for Progress goal of 2.5 percent. ... In contrast to 2.1 percent growth in the 1950s, GDP in Latin America reached 2.7 percent in the later part of the 1960's and climbed 3.8 percent between 1970-1974. ... Overall seven countries reached the target goal of 2.5 percent GDP, twelve nations didn't reach the goal, and Haiti and Uruguay had lower GDP. ... Adult illiteracy was not wiped out. But in some countries the number of people going to universities doubled or tripled. Access to secondary education also showed increases. ... Of the 15 million peasants in Latin America, only one million benefited from any kind of land reform. The traditional elites resisted any land reform. ... The most significant failure of the Alliance for Progress was the number of new dictatorships in the region during the 1960's.[10]
Military version
During the Kennedy administration, between 1961 and 1963 America suspended economic and/or broke off diplomatic relations with several countries which had dictatorships, including Argentina, Dominica, Ecuador, Guatemala, Honduras, and Peru. But this suspension were imposed only temporarily, for periods of only three weeks to six months. ... By 1964, under President Johnson, the program to discriminate against dictatoral regimes ceased. In March 1964 the US approved in advance of a military coup in Brazil, and was prepared to help if called upon under Operation Brother Sam[11] ... In 1965 the US dispatched 24,000 troops to the Dominican Republic to stop a possible left-wing take over under Operation Power Pack. ... The Alliance for Progress included U.S. programs of military and police assistance to counter Communist subversion, including Plan LASO in Colombia.
Results
The Alliance for progress achieved a short-lived public relations success. It also had real but limited economic advances.[12] ... The program failed for two reasons: ... Latin American nations were unwilling to implement needed reforms, particularly in land reform. Presidents after Kennedy were less supportive of the program. The amount of money was not enough for an entire hemisphere, $20 billion averaged out to only $10 per Latin American. [13] The Organization of American States disbanded the permanent committee created to implement the alliance in 1973. [14]
Notes
^ Cox, Ronald W (1994). Power and Profits US Policy in Central America, University Press of Kentucky. 0813118654. p. 83-85
^ Smith, Peter H (1999). Talons of the Eagle: Dynamics of U.S.-Latin American Relations, Oxford University Press. 0195129989. p. 150-152
^ Smith, Peter H (1999). Talons of the Eagle: Dynamics of U.S.-Latin American Relations, Oxford University Press. 0195129989. p. 152 Citing:
Scheman, L. Ronald (1988). The Alliance for Progress: A Retrospective, New York: Praeger.p. 10-11
Smith, Tony "The Alliance for Progress: The 1960s," in Lowenthal, Abraham F. (1991). Exporting Democracy: The United States and Latin America, Baltimore: Johns Hopkins University Press. p. 72
