The Alliance For or Against Progress? US–Brazilian Financial Relations in the Early 1960s

Abstract

This paper analyses the role played by US economic assistance during the administrations of Jânio Quadros and João Goulart in Brazil (-). It focuses on the negotiation and implementation of financial agreements associated with the Alliance for Progress, President Kennedy's aid programme for Latin America. It demonstrates that the Alliance had a positive impact during Quadros' administration, providing substantial resources to the country and placing economic growth ahead of economic stabilisation as the principal criterion for aid. Circumstances changed, however, when João Goulart became president, resulting in serious funding constraints. The paper suggests that the main reason for this was political, specifically regarding Washington's perception of Goulart's links with communist groups. a break with the policy of previous administrations.  Throughout most of the s, Washington supported right-wing dictatorships in the region, played down the role of public funds for development and emphasised the need for rigorous economic stabilisation and inducements to private investment. The Cuban Revolution proved that this strategy could produce dangerous outcomes. As a more sustainable solution to the problem of leftist agitation, the Alliance for Progress responded by calling for the strengthening of progressive democratic regimes and an improvement in living standards, to be achieved by higher government spending, social reforms (including agrarian and tax reforms) and foreign aid. As Kennedy stated in his concluding remarks to the diplomats, without 'social change' and 'democracy', 'our dream will fail'. 

TheUSRole in the 1964 Coup inBrazil: A Reassessment

“…In January 1963, the opportunity the meeting represented was lost, because Goulart won the referendum that restored full powers to his presidency, and he became increasingly autonomous of the US. In this regard, the interpretation of Loureiro () seems correct. Loureiro argues that in 1963, the Kennedy administration began to block economic assistance to Goulart and abandon the attempt to use economic incentives to induce his government to move to the centre‐right.…”

Public opinion and foreign policy in João Goulart's Brazil (1961-1964): Coherence between national and foreign policy perceptions?

“…And, finally, during the Cuban Missile Crisis in October 1962, despite the fact that Brazil supported the US quarantine against Cuba, the Goulart government did not vote at the OAS meeting in favor of measures to allow Washington to employ force if necessary against the island (Hershberg 2004). Scholars agree that the turn of Brazil's foreign policy was important to deteriorate US-Brazilian relations (Weis 2001;Rabe 2012;Loureiro 2014).…”

International financial negotiations and political actors: the breakdown in IMF-Brazilian negotiations during the administration of Juscelino Kubitschek (1957-1959)

“…13 Storrs (1973). 15 For the change in Washington's policy towards Goulart's Brazil see Loureiro (2014Loureiro ( , 2017b. 16 For US-Latin American relations in the post-World War II see , , and Smith (2010).…”

“…For further information on US-Brazilian economic relations during the administration of Jânio Quadros and João Goulart seeLoureiro (2014Loureiro ( , 2017b.407 See, for instance,Loureiro (2014).…”