Friday, Mar. 26, 1965
At Last, a Partnership
On the fourth anniversary of the Alianza para el Progreso last week, the U.S. could report that its grand design is finally showing some substance. Since 1961, the U.S. has disbursed $3.5 billion in aid and committed $4.2 billion, in return for which Latin Americans are beginning to do the necessary, often difficult, things that will multiply the dollars. Items:
> Per capita income in Latin America rose an average 3% last year, compared with the Alianza goal of 2 1/2% per year. In eight countries,* per capita income climbed more than 4% for 1964.
> Gross national product rose steadily, and on a per capita basis last year more than half of the 19 Alianza nations exceeded the program's goal of a 2 1/2% growth rate.
> Tax collections increased by 4% last year and finished 10% higher than 1961, as virtually every government reorganized its tax structures and collection systems. "Before the Alianza," says one Washington official, "many of the tax policies of Latin America hadn't changed since Cortez' time."
> Exports climbed to an estimated $10 billion, a record volume almost 14% higher than 1961. At the same time, imports remained at about $8.5 billion, as Latin Americans started developing industries at home instead of constantly looking abroad.
>Private U.S. investment, after some slow years, was flowing back into Latin America at such a rate that the overall total now stands at a record $9 billion, for an increase of 7% since 1961. During the same period, private local investment rose almost 25%, reaching $2.4 billion.
> Illiteracy declined from 50% of Latin America's population in 1961 to 43% last year. In 1961, there were 160 universities in Latin America, with 520,000 students. By the end of 1964, the total was up to 196 universities and 680,000 students.
Concludes David Bell, director of the Agency for International Development, which supplies most of the Alianza funding: "It has taken two or three years for the Latin American governments and people involved to commit themselves and to understand that this was a partnership in which their own self-help measures were crucial for success. Now, they are finally establishing a true Alianza relationship."
* Mexico, Venezuela, Brazil, Chile, Peru, Colombia, Ecuador and Guatemala.
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