Question

A key reason why Latin Americans rejected the Inter-American development Bank was that:

• A. it primarily provided money for social reform subsidies.
• B. the moneys provided were only for specific performance projects.
• C. it constituted an extension of the Marshall Plan into Latin America.
• D. it was being used as a means to control the economic destiny of Latin America.

Hint:

In foreign aid history, when a recipient region rejects assistance, look for underlying issues of sovereignty, control, and perceived dominance by donor nations.

Answer 1

The Correct Option is D

The passage notes that although the United States invested large sums in Latin America — both through government and private channels — many Latin Americans viewed this aid not as generosity, but as “economic imperialism.”
This perception meant they saw the Inter-American Development Bank and similar initiatives as tools for U.S. influence over their economies.
Option (a) is incorrect — the money was not primarily directed to social reform subsidies; in fact, the U.S. often favored status quo stability over reform.
Option (b) is incorrect — the passage does not mention restrictions based solely on specific project performance as the reason for rejection.
Option (c) is incorrect — while Kennedy’s later “Alliance for Progress” was compared to the Marshall Plan, the Inter-American Development Bank was not framed as a Marshall Plan equivalent in the same way.
Option (d) directly matches the idea of “economic imperialism” described in the passage, making it the correct answer.