based on Militant article
e Alliance for Progress wae formed in I96I with the aims of furthering democracy and political stmbility: in tho Latin /mericam countries, At its 2nd Anmal Review Meeting in November it became evident that the Jilliance had succeeded in creating neither political nor economic stability, and was, in fact, a complete failure, as only Chile, Costa Rica and Uruguay out of the I9 constituent countries were described as stable by the N.Y. Times recently, and 5 governments have beon overthrown since its formation.
Behind this failure lies the myth of U.S. aid to under-developed countries. This does not exist, but has been, in fact, vastly to the advantage of private investors, who have long since turned away to more profitable markets, thus dofoating the hopes of the Alliance that they would invest s2qually with U.5. Government funds, Between I950 and 1955,2 billion dollars were invested, 34 billion were made, and thus I billion were takon back to the U.S, In 1959 alone 775 million were made, tut only 200 million worse re-invested. in ths last. 7 years Latin America has lost $2,679,000,000.
_At the moment these countries are facing tho problems of severe inflation (in Brazil the cost of living has risen 100% this year) and rising population, while the Alliance's economic drive to increase per capita income by 226 per annum has been a dismal failure. Latin America was much better off bef ore it & bocamo the reoipient of U.S. 'aid' (in reality this is largely in the form of commorcial loans), becauso now, whon the time for repayment comes, drastic measures havo to be taken to avoid bankruptcy, In Argentina and Peruthis situation has led to attempts to take ovor ths U.S. owned oil industry.
It becomes increasingly obvious that tho only way to stabilize the econtmies of the Latin American countries is to make them independent of high— priced imported manufactured goods, by developing their owm industries, instead of having to sell their native raw materials at the disadvantageous prices that the industrial countrios will pays