Alliance for Progress

Alliance for Progress, program for technical and financial cooperation and development among the American nations of the Organization of American States (OAS). The alliance was established by the Charter of Punta del Este, signed in August 1961 at the suggestion of U.S. President John F. Kennedy. The U.S. agreed to provide assistance for the development goals to be carried out within the framework of the OAS to benefit developing countries of Latin America.

The economic objectives of the alliance included raising national incomes and distributing them more equitably, accelerating industrialization and agricultural productivity, and stabilizing prices and increasing exports. Social objectives included improving education and reducing illiteracy, improving health and nutrition, and increasing trained medical personnel.

After ten years in operation the program had mixed results. Per capita economic growth of 3.8 percent exceeded the goal of 2.5 percent. Agrarian reform did not improve, housing shortages continued, unemployment worsened because of high birth rates, and the international trade outlook remained bleak. Between 1962 and 1971 the United States contributed $11 billion in financial and technical aid. Additional aid was extended by several international agencies.

By the early 1970s, the alliance was being criticized by all parties. Some critics considered it an example of Yankee imperialism in Latin America. A reduction in loans further limited the possibilities of success, and the program slowly ceased to function.