Rate Decrease in Latin America

The Alliance for Progress can serve as a specific example of how transformation, when related to a certain instructional location and policy difficulty with lack of the impartial investigation, can end up being a complete failure. A large number of objectives placed by the Alliance was not simply a random selection; in its place, a number of experts, policy makers, and advisors have been working with the plan and selecting proper means for reaching them. Actually, the examination conducted was not satisfactory. Coalition for Progress was a result of the change in the U.S. principles started by Kennedy Administration which never succeeded.

The Coalition for Progress became a serious letdown of the Kennedy Administration, because it has grown but still was powerless to accomplish the serious aims set by the plan. The crucial reason of the failure was inability to approximate the range of the problems in Latin America and, therefore, impartially estimate the results that would be appear after the foreign asset of the $22.3 billion. The annual profits per capita in Latin America in 1960s was around $200 while economy was concentrated on raw material manufacture. 90% of the territory, which was supposed to be the major basis of profits for countries in Latin America because of extreme productivity, was held by 10% minority and used mainly for speculation being set aside. Besides that, a steady drop in values for the unrefined material had made the economic condition in Latin America even worse than is used to be. Coffee, which is the main source of income in countries of Latin America as well showed a stable decline. A decline in price in intercontinental prices on coffee with 1 cent caused losses of $50 million for countries of Latin America, while starting with 1954 the prices went up than twice. As a result, the rate of increase for Latin America went stridently down. Although in 1940-1950 it reached the point of 3.5%, around 1960 before the Alliance for Progress, the rank barely reached 1%. With the intention of correcting the situation, the Alliance for Progress developed $20 billion into foreign help to make sure that the rate growth gets to at least 2.5%. It has to be further noted, that intention has never been achieved to the full.