Evening star., 1960-03-29
THE CHANGING HEMISPHERE
Economic Help Called
Nations BiggestNee
By JOHN v. HORNER
star stan Writer

~ JUN W. nOnNEH
"a star stan Writer
The NEST pressing needs Of
the restless countries of Latin
America are for economic de-
',velopment and financial sta
.bility.
Acceptance Of this fact has
brought q United States decis-
Ion to strengthen the inter-
American structure by intensi-
Tying its efforts to help our
southern neishbors get on their
feet.
Washington sees economic
health as an important weapon
against serious penetration of
the hemisphere by interna-
tionAi communism.
The task win not be easy, as
evidence by Fidel Castro's hos
tilitg toward us. and his coy
relationship with Soviet Russia.
But Cuba Notwithstanding, the
rest of the hemisphere appears
insgeneral accord with the idea
OF closer cooperation with the
big neighbor to the north.
Procedure Up to Nations
The United States has not
yet spelled out-and probably
viii not-the details of a pro-
gram to stimulate the general
economy Of Latin America.
It is felt that the Latin
american countries must make |
their own decisions on how best
to improve productivity and
distribution. and end feudalism.
On the other hand, 1t is clear
that the United States will give
Q sympathetic ear to requests
for financial and technical as
aistance.
Reason for Plight
There are many reasons for
Latin Americas econ omic
plight. About two-thirds of the
people Of this vast region are
classified as rural. More than
half OF them are directly de-
pendent upon agriculture.
The peasants are either very
small landowners who exc out |
existence on overworked land |
Ior they are virtual slaves on
parge. estates. Almost always
they earn only bare subsistence.
With improved transportation
and communications. peasants
nave begun q mass movement |
70 the cities. where they expect
better work. better pay and
better living conditions. But
once there, they find high costs
and privation. They create
Slums and raise enormous prob
lens for local and national gov
ePnments.
All this results in pressure for
new housing, health facilities,
schools and the like. And it
provides a fine seedbed for
political unrest.
Problem for Governments
When new projects are au-
thorized in response to this
pressure. the governments fire.
quently wind up in financial
crisis They often must float
public loans, obtain grants or
loans from the outsider start
the printing presses. /
The Latin American economy
also suffers because many
countries depend upon one or
two. crops for their principal
exports-such as bananas, or
sugar or coffee. When a crop
fails or when the world market
price is of. those countries are
In serious trouble.
Factors such as these. plus
the looting Of national treas
uries and mismanagement by
relationships. have brought
widespread imitation.
Some Nations Stable
Even so. most Of the Central
American states are fairly sta
bic financially. Mexico. for one,
Is in a fine position. Conf
dence In its economy Is illus
trated by the willingness of the
Prudential Life Insurance Co.
Of America to buy 500 million
worth Of its bonds-and with
out restrictive terms.
Brazil. by contrast. is suffer-
ing from severe imitation. Para
quay. which appeared to have
stabilized, has been having
trouble again. Peru, on the
other hand. is getting alorg
exceptionally well, And the
business-like Alessandri ad-
ministration in Chile is doing
a'good job.
Despite the drastic actions of
Pr me Minister Castro. Cuba is
setting along well with It's cur
rent sugar crop. The outlook |
In this respect is favorable |
unless the United States Con-
Rress slashes the Cuban quota