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Francis Adams - Dollar Diplomacy: United States Economic Assistance to Latin America

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Dollar Diplomacy: United States Economic Assistance to Latin America
Author:
Francis Adams
Publisher:
Routledge
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Books / Politics
Year:
2000
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Dollar Diplomacy

First published 2000 by Ashgate Publishing

Reissued 2019 by Routledge

2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN

52 Vanderbilt Avenue, New York, NY 10017

Routledge is an imprint of the Taylor & Francis Group, an informa business

All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

Notice:

Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.

Publishers Note

The publisher has gone to great lengths to ensure the quality of this reprint but points out that some imperfections in the original copies may be apparent.

Disclaimer

The publisher has made every effort to trace copyright holders and welcomes correspondence from those they have been unable to contact.

A Library of Congress record exists under LC control number:

ISBN 13: 978-1-138-70652-1 (hbk)

ISBN 13: 978-1-315-20176-4 (ebk)

Contents

Guide

The twentieth century is sometimes referred to as the American century. Since 1900 the United States has evolved from an unexceptional middle power with only limited influence in global affairs and a strong tendency toward isolationism, to become the worlds dominant country, virtually un-rivaled in power, influence and wealth. American hegemony will almost certainly continue well into the twenty-first century.

The size and scope of American power presents a startling paradox. Although the United States plays a major role in shaping the current global order, public knowledge of international affairs is surprisingly limited. Most Americans have only a vague understanding of their countrys role in the world and exhibit little interest in foreign policy.

Foreign assistance offers a prominent example of this disconnect between policy makers and the general public. Although the U.S. government funds a wide array of assistance programs in every comer of the globe, most Americans have minimal knowledge of aid policy. In fact, few federal initiatives are the source of so many widespread and persistent misperceptions.

One of the most common errors concerns the amount of foreign assistance the United States distributes each year. It is commonly believed that overseas aid is one of the largest items in the federal budget and thus constitutes a significant burden for the average taxpayer. This could hardly be further from the truth. Such assistance is actually one of the smallest public expenditures, representing less than 1 percent of the federal budget. When foreign aid is measured as a percentage of gross national product (GNP), the U.S. contribution ranks smallest among the industrialized nations.

A second misperception concerns the relative usefulness of foreign assistance. There is a common belief that while these programs may be well-intentioned, they are hopelessly ineffective. Of course, some assistance projects have squandered scarce resources, failed to reach intended beneficiaries, and actually caused more harm than good. The problems of the past should not be downplayed or overlooked. But there are also numerous examples of remarkable success. Emergency relief in response to humanitarian crises has saved countless lives. The United States can also take credit for highly innovative programs in basic nutrition, preventative health care, primary education, and integrated rural development. While occasional failures attract media attention, everyday successes go largely unnoticed.

The central motivation for providing foreign assistance is possibly the greatest source of public confusion. Most people associate these programs with humanitarian objectives. This perception is partly semantic, since the terms aid or assistance connote a spirit of benevolence and concern for the well-being of others. While humanitarian imperatives have certainly influenced the distribution of American aid over the years, such assistance is largely driven by more immediate self-interests and must be understood within the context of overall U.S. foreign policy.

This book addresses some of the common misperceptions about U.S. foreign assistance. However, I am not attempting to examine assistance programs in each region of the world, a task which would be well beyond the scope of a single volume. Rather, I have limited my research to a single regionLatin Americaand a distinct time period1960 to 2000. Hopefully, this analysis will help illuminate the broader character and underlying motivations for U.S. assistance programs in general.

During the course of this project I benefited from the support and advice of various individuals to whom I would like to express my gratitude. I am especially grateful to Professor George Philip of the University of London, the editor of this series on the political economy of Latin America for Ashgate Publishing House. Professor Philips close reading of the text and thoughtful suggestions helped improve the overall quality of the final product. Kirstin Howgate, Commissioning Editor at Ashgate, was also instrumental in guiding this project to a successful conclusion. The original idea for this book actually grew out of a conversation with Ms. Howgate in the spring of 1998. Anne Keirby, Ashgates Administrative Coordinator, and Amanda Richardson, the Editorial Controller, were especially helpful during the latter stages of this project as we prepared the manuscript for publication.

I would also like to acknowledge the support I received from people at Old Dominion University. Karen L. Gould, Dean of Arts and Letters, was a consistent source of assistance and encouragement. A grant from her office helped cover some of the expenses incurred while researching this project and a second grant helped finance the final preparation of this volume. Elaine Dawson, who provided expert copyediting and word processing assistance, was critical to the timely completion of this project. I also received continued support from colleagues in the Department of Political Science and Geography and research assistance from four graduate students, Osei Bonsu, Susan Morris, Robert Pauly and Matt Slater.

Although this book could not have been completed without the generous assistance of these individuals, I am solely responsible for its shortcomings.

Francis Adams
Norfolk, Virginia
January 2000

AACCLA	American Association of Chambers of Commerce of Latin America
ACILS	American Center for International Labor Solidarity
ACVA	American Council of Voluntary Agencies
AD	Democratic Action Party
AFP	Alliance for Progress
AID	Agency for International Development
AIFLD	American Institute for Free Labor Development
APRA	Popular Action Party
BFW	Bread for the World
BHN	Basic Human Needs
CACM	Central American Common Market
CADO	Central American Development Organization
CBERA	Caribbean Basin Economic Recovery Act
CBI	Caribbean Basin Initiative
C/CAA	Caribbean/Central American Action
CDB

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