Alliance for Progress

Alliance for Progress, or, in Spanish, Alianza para el Progreso, was a cooperative program that promoted economic and social development in Latin America. It involved the United States and more than 20 Latin-American nations. The program began in 1961 and ended during the early 1970’s.

In 1961, President John F. Kennedy called for the establishment of the Alliance for Progress. He proposed the cooperative program to replace previous efforts by the United States to help Latin-American countries on an individual basis. The United States and 19 Latin-American countries signed the charter of the Alliance for Progress on Aug. 17, 1961, in Punta del Este, Uruguay. Other Latin-American countries later joined the program.

Under the alliance’s charter, the participating Latin-American countries provided 80 percent of the funds for the program. The remainder was furnished by the United States, other wealthy countries, and a variety of public and private groups. During the 1960’s, the United States provided nearly $10 billion for projects connected with the Alliance for Progress program. These projects included housing developments, power plants, and roads.

The Organization of American States, an association of Latin-American countries and the United States, coordinated the activities of the Alliance for Progress. United States participation was directed by the Agency for International Development, which was then a part of the United States Department of State. Other United States government agencies involved in the program included the Export-Import Bank and the Peace Corps. International lending agencies, such as the Inter-American Development Bank and the World Bank, also worked with the alliance.

One of the goals of the Alliance for Progress was an annual economic growth rate of at least 21/2 percent per nation. Almost all the Latin-American countries exceeded this goal during the 1960’s. They also improved their educational systems and programs to benefit the poor. But the alliance was less successful in providing more jobs. Unemployment in much of Latin America remained high, though the alliance had pledged to reduce it. Critics charged that the alliance failed to deal realistically with Latin America’s overpopulation problem. Others said the program’s goals had been too ambitious. Still others blamed the U.S. Congress, which began to cut funds for the alliance in the late 1960’s.

During the early 1970’s, the U.S. government began to emphasize increased trade, rather than direct aid, as a means of solving Latin America’s economic problems. Also, Latin-American nations were providing more and more of their own development resources. In addition, international lending agencies, especially the World Bank, provided more money for development projects in Latin America.