Latin American 'Marshall Plan'
PORTER, PAUL R.
U.S. policy should speed industrialization and encourage private investment to bolster new democratic forces in the Western hemisphere Latin American 'Marshall Plan' By Paul R. Porter IF THE...
...private capital...
...But his recommendations lack the vision and inspiration which alone can evoke heroic efforts...
...It is the absence of an imaginative concept of a transformed Latin America which makes the Eisenhower Administration's new look southward so disappointing...
...financial assistance...
...Earlier, he served as the U.S...
...should disclose information to commodity study groups without implying support for price stabilization efforts...
...A policy of giving solid encouragement to the democratic forces in Latin America would seize the present occasion for initiating an undertaking which would be as bold and beneficial—and untrivial—in this hemisphere as was the Marshall Plan in Europe...
...The transformation of more than a continent within a generation should be the goal, and it should be regarded as one goal to be undertaken by all Latin American nations in a Paul R. Porter has been associated with the Marshall Plan as Chief of Mission in Greece, Assistant Administrator in Washington and as European regional administrator...
...and in Latin America...
...No "new measures" were formulated, but before the Committee recessed a working group was appointed with instructions to keep trying...
...A council on inter-American affairs should be created to advise the Secretary of State...
...I mention the Marshall Plan to connote an imaginative program that kindled hope and courage among millions, that inspired emerging leaders to create effective institutions for intra-European cooperation, and that produced a working compact between the United States and free Europe which is the main bulwark of democratic strength and hope in the world today...
...Information Agency should be increased...
...member of the European Coal Organization...
...Milton S. Eisenhower...
...The central problem in Latin America is rapid industrialization so that the region's natural resources may support more adequately a fast-increasing population...
...Eisenhower's report does not foreshadow a change in this position...
...Unquestionably, Dr...
...It would be fair to say that Dr...
...Latin American nations should control inflation and create a favorable climate for private investment...
...Diversified and more efficient agriculture, education and medical care—these too are urgent, but the most pressing problem is industrialization...
...To the south of us circumstances are now favorable for a big step forward...
...General responsibility for the technical assistance programs should be vested in the State Department...
...The U.S...
...The scope of what the Administration has in mind is presumably to be found in this report, which was made public on January 3. After noting that there is "a high degree of illiteracy, poverty and dependence on one-commodity economies," and that the people of Latin America look to the United States lor assistance in remedial actions, Dr...
...Current Administration views on this subject are sharply divided, but even the proposals for tax incentives thus far offered by those in the Administration who favor them are fuzzy and fail to focus on areas where the need is greatest...
...Until these economies become more diversified we should give sympathetic consideration to stabilization proposals...
...Reference to the Marshall Plan is not intended to suggest a massive program of economic grants, which would not be relevant...
...Eisenhower's report that suggests that he or the Administration contemplate a major transformation in the economic status of Latin America, or any fundamental change in power relationships which would put our neighbors on a more equal footing...
...There is nothing in Dr...
...Government...
...Eisenhower states that "heroic efforts are required" and submits recommendations...
...We should make a modest increase in the present $32 million technical assistance program...
...Participating State Department spokesmen kept the conference on a creative level with similar sentiments and more specific references to "practical measures," "problems already at hand" and "one step at a time...
...Development on a major scale would also require a major infusion of U.S...
...Until now the Administration has also resisted the idea of a general plan...
...The Administration's acceptance of the idea of an Inter-American Development Bank to make such loans, which it had earlier opposed, is a welcome move...
...But any fault in the American response must be found in substance rather than in protocol...
...Activities of the U.S...
...His single illustration of what he has in mind concerns bestowing medals on officials...
...About half of the capital would come from the U.S...
...If we are obliged by internal political pressure to discriminate sometimes against Latin American countries in trade matters, we should inform them in advance...
...Eisenhower has urged a more cordial attitude toward democratic governments than toward dictatorships...
...That we should cease bestowing decorations or other honors upon dictators...
...Each U.S...
...The element of novelty and greatness in the Marshall Plan was the concept that the recovery of Europe was one problem—not a collection of national problems—and that its solution would require a joint European effort no less than U.S...
...Eisenhower's concept is a nicer status quo...
...Ambassador should have direct supervision over technical assistance...
...It would be unfair to leave the impression that the Administration's new look has been or will be wholly barren...
...some loans would be repayable in dollars and some in local currencies...
...Commodity price stabilization, which Dr...
...joint effort with assistance from the United States...
...But whether or not this would be the case, we should make it known that we would welcome and will strongly back joint efforts toward rapid industrialization...
...This melange of some potentially important economic measures, possibly useful good-will committees, and minor juggling of administrative responsibilities, falls short of the heroic...
...Among these men and others like them may well be leaders who, with U.S...
...should support a Latin American proposal for an Inter-American Development Bank...
...Since Vice President Richard M. Nixon's misfortunes in Peru and Venezuela last May, the Administration has been trying to devise new policies...
...Eisenhower in effect opposes, is unquestionably a difficult subject...
...help, could collectively create a new age in Latin America...
...recession...
...Any program to lift Latin America to a significantly higher economic level by democratic means will doubtless require a large volume of public loans for the infrastructure industries...
...Kubitschek in Brazil, Arturo Frondizi in Argentina, Lleras Camargo in Colombia, Romulo Betancourt in Venezuela and Lopez Mateo in Mexico appear to be men of ideas with a high sense of dedication...
...The usefulness of the bank will depend upon the magnitude of its operations and the relationship of loan projects to a general development plan...
...Such cooperation in economic development might lead to one or more institutions of political federation among the Latin American nations...
...When President Juscelino Kubitschek of Brazil tried to turn the dismay over the demonstrations against Nixon toward constructive ends by proposing a major undertaking in economic cooperation, his proposal was dignified by a John Foster Dulles visit to Rio de Janeiro...
...Trivial as this may sound," he says, "I recommend that it be our official policy in relations with Latin American leaders and nations...
...The recommendations are a basket of many things, offered in the following order: Each American republic should establish a body of distinguished citizens to promote better understanding...
...It is a pity that he conveys an impression that the policy he recommends really is trivial...
...Eisenhower, a man of demonstrated good will, earnestly hopes to promote more literacy, less poverty and better understanding...
...Unless the economies of Brazil, Chile, Peru and Colombia, among others, can receive some protection against violent price swings, these countries are likely to be subject to severe and unpredictable economic crises no matter how bravely they try to control inflationary forces...
...policy should speed industrialization and encourage private investment to bolster new democratic forces in the Western hemisphere Latin American 'Marshall Plan' By Paul R. Porter IF THE United States acts boldly while circumstances remain favorable it could spark a transformation in Latin America more fundamental and far reaching than the historic changes stimulated by the Marshall Plan in Europe...
...A major part of Latin American exports, however, are unusually sensitive to such external factors as a U.S...
...The U.S...
...A major private investment in the non-extractive industries is unlikely without substantial tax incentives in both the U.S...
...The U.S...
...In the popular fashion of celebrating any new governmental activity with a title in the "Operation" series, the new look came to be known as "Operation Pan-America...
...Never in the history of these nations bave so many of them simultaneously had democratic leaders who place popular welfare above personal ambition...
...There are some concrete and constructive measures, though not especially new ones, contained in the special report submitted to the President by his brother, Dr...
...Latin American news should be better reported in the U.S...
...A hemispheric conference of foreign ministers in September initiated a gathering in Washington in November of representatives of 20 Latin American republics plus the United States, known officially as the Special Committee to Study the Formulation of New Measures for Economic Cooperation...
...President Eisenhower encouraged the Committee with a message of well-worn phrases such as "constructive measures," "concrete measures," "fruitful cooperation" and "we are determined to press forward...
...The Latin American nations should establish three regional common markets...
...The Latin American people should recognize that they have benefited indirectly from our aid programs in Europe...
...Government should offer tax incentives to Americans investing abroad...
Vol. 42 • February 1959 • No. 7
