Foreign and Human Relations with Latin America
The substantive and procedural problems of Latin American development are hard enough. Harder still is the inseparable task of understanding the social and psychological problems well enough to begin coping with them. With Latin America, we do not have any significant difficulties in formulating goals. The 1961 Charter of Punta del Este, the lines of action agreed on by the Presidents at Punta del Este in 1967, the economic and social principles of the revised Charter of the Organization of American States-indeed the constitutions of the other American states-all support this assertion. The difficulties begin thereafter, when operations start to go forward. The problems are various, and their origins are distributed. Most of the impediments that are fairly attributable to the United States arise from that short-haul practicality all too often, and incorrectly, called "pragmatism."
The substantive and procedural problems of Latin American development are hard enough. Harder still is the inseparable task of understanding the social and psychological problems well enough to begin coping with them. With Latin America, we do not have any significant difficulties in formulating goals. The 1961 Charter of Punta del Este, the lines of action agreed on by the Presidents at Punta del Este in 1967, the economic and social principles of the revised Charter of the Organization of American States-indeed the constitutions of the other American states-all support this assertion. The difficulties begin thereafter, when operations start to go forward. The problems are various, and their origins are distributed. Most of the impediments that are fairly attributable to the United States arise from that short-haul practicality all too often, and incorrectly, called "pragmatism."
Frequently, in Latin America, development operations have been impeded by emotional responses. Neither we, who want to help, nor they, who want help, understand very much about the psycho-political nature of these difficulties. The fact is that the difficulties are related to attitudes not yet scientifically identified. Traditional assumptions and classic models still govern the execution of mutual assistance.
We do justice to ourselves and a favor to our neighbors when we insist that the reasons for Latin America's problems are mostly in Latin America. We can, however, accomplish little by preaching to others, especially about problems that are emotional. These comments, then, focus on what North Americans need to understand about the nature of our own influence and its interaction with change to the south of us.
II
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The ultimate success or failure of the Alliance for Progress will be determined, in my judgment, primarily by the attitudes and actions of the business community in both the United States and the Latin American republics. This is not to say that the role of governments is unimportant; it is, indeed, essential. But without the enlightened coöperation of private enterprise, which provides 80 percent of the gross national product in Latin America, the growth pattern prescribed by the Alliance is unlikely to be realized.
The debt containment policy conceived in 1982, under which repayments were financed by the creation of trade surpluses, has run its course. The question now is not only whether the big debtors will pay, but where the money will come from. There is an urgent need for innovative financial mechanisms. The new strategy should include economic reform in debtor countries, new capital in-flows and, if necessary, workable formulae for interest deferral.
We are confronting in Latin America what is in essence an ideological crisis-a question of purpose. Given our national predilections this is the kind of problem we find most difficult to deal with. The temptation is to retreat, retrench and look inward. This is an impossibility: our wealth is too great not to share, our enterprise too successful and too useful not to expand, our interests-and the peace of the world-too vulnerable not to protect.
