In the first half of the 20th century, and more actively in the post–World War II period, the United States government used economic aid programs to advance its foreign policy interests. US policymakers generally believed that support for economic development in poorer countries would help create global stability, which would limit military threats and strengthen the global capitalist system. Aid was offered on a country-by-country basis to guide political development; its implementation reflected views about how humanity had advanced in richer countries and how it could and should similarly advance in poorer regions. Humanitarianism did play a role in driving US aid spending, but it was consistently secondary to political considerations. Overall, while funding varied over time, amounts spent were always substantial. Between 1946 and 2015, the United States offered almost $757 billion in economic assistance to countries around the world—$1.6 trillion in inflation-adjusted 2015 dollars. Assessing the impact of this spending is difficult; there has long been disagreement among scholars and politicians about how much economic growth, if any, resulted from aid spending and similar disputes about its utility in advancing US interests. Nevertheless, for most political leaders, even without solid evidence of successes, aid often seemed to be the best option for constructively engaging poorer countries and trying to create the kind of world in which the United States could be secure and prosperous.
Jeffrey F. Taffet
Patrick William Kelly
The relationship between Chile and the United States pivoted on the intertwined questions of how much political and economic influence Americans would exert over Chile and the degree to which Chileans could chart their own path. Given Chile’s tradition of constitutional government and relative economic development, it established itself as a regional power player in Latin America. Unencumbered by direct US military interventions that marked the history of the Caribbean, Central America, and Mexico, Chile was a leader in movements to promote Pan-Americanism, inter-American solidarity, and anti-imperialism. But the advent of the Cold War in the 1940s, and especially after the 1959 Cuban Revolution, brought an increase in bilateral tensions. The United States turned Chile into a “model democracy” for the Alliance for Progress, but frustration over its failures to enact meaningful social and economic reform polarized Chilean society, resulting in the election of Marxist Salvador Allende in 1970. The most contentious period in US-Chilean relations was during the Nixon administration when it worked, alongside anti-Allende Chileans, to destabilize Allende’s government, which the Chilean military overthrew on September 11, 1973. The Pinochet dictatorship (1973–1990), while anti-Communist, clashed with the United States over Pinochet’s radicalization of the Cold War and the issue of Chilean human rights abuses. The Reagan administration—which came to power on a platform that reversed the Carter administration’s critique of Chile—reversed course and began to support the return of democracy to Chile, which took place in 1990. Since then, Pinochet’s legacy of neoliberal restructuring of the Chilean economy looms large, overshadowed perhaps only by his unexpected role in fomenting a global culture of human rights that has ended the era of impunity for Latin American dictators.