Comprehension
If American policy towards Europe in the postwar years had been a conspicuous success, and towards Asia a disappointing balance between success and failure, it could be said that the most conspicuous thing about relations with Latin America was the absence of any policy. Franklin Roosevelt, to be sure, had launched a “Good Neighbour” policy, but being a good neighbour was, it seemed, a negative rather than a positive affair, a matter of keeping hands off, of making the Monroe Doctrine, in form at least, multilateral. All through the postwar years, the states of Latin America - - Mexico and Chile were partial exceptions - - were in the throes of major economic and social crises. Population was growing faster than in any other part of the globe, without a comparable increase in wealth or productivity; the gap between the poor and the rich was widening; and as the rich and powerful turned to the military for the preservation of order and privilege, the poor turned to revolution.
Deeply involved in other quarters of the globe, the United States paid little attention to the fortunes or misfortunes of her neighbours to the south, and when she did intervene, it appeared to be on the side of order and the status quo rather than on the side of reform. So frightened was the United States of “Communism” in Latin America that it preferred military dictatorship to reformers who might drift too far to the “left”, and sustained a Batista in Cuba, a Trujillo in the Dominican Republic, a Peron in Argentina, and a Jimenez in Venezuela.
In his last two years, President Eisenhower had tried to mend his Latin American fences. Though rejecting a Brazilian proposal of a Marshall Plan for Latin America, he did take the initiative in setting up an InterAmerican development Bank with a capital of one billion dollars, almost half of it supplied by the United States. Other government investments in Latin America ran to some four million dollars, while private investments exceeded nine billion. Yet though to most Americans, all this seemed a form of economic aid, many Latin Americans regarded it as economic imperialism. In September 1960, came a co-operative plan that could not be regarded as other than enlightened: the Act of Bogota, which authorized a grant of half a billion dollars to subsidize not only economic but social and educational progress in Latin America. “We are not saints”, said President Eisenhower when he visited Santiago de Chile, “We know we make mistakes, but our heart is in the right place”.
But was it? President Kennedy was confronted by the same dilemma that had perplexed his predecessors. Clearly it was essential to provide a large-scale aid to the countries south of Rio Grande, but should this aid go to bolster up established regimes and thus help maintain status quo, or should it be used to speed up social reforms, even at the risk of revolt? As early as 1958, the then Senator Kennedy had asserted that “the objective of our aid program in Latin America should not be to purchase allies, but to consolidate a free and democratic Western Hemisphere, alleviating those conditions which might foster opportunities for communistic infiltration and uniting our peoples on the basis of constantly increasing living standards”. This conviction that raising the standards of living was the best method of checking Communism now inspired President Kennedy’s bold proposal for the creation of the alliance for progress - - a ten year plan designed to do for Latin America what Marshall Plan had done for Western Europe. It was to be “a peaceful revolution on a hemispheric scale, a vast co-operative effort, unparalleled in magnitude and nobility of purpose, to satisfy the basic needs of the American people for homes, work, land, health and schools. “To achieve this, the United States pleaded an initial grant of one billion dollars, with the promise of additional billions for the future.
Question: 1

Following World War II, which problem was the United States most concerned with regarding Latin America?

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When identifying a country's foreign policy concern, focus on the recurring theme or fear expressed in its actions — in Cold War contexts, this often relates to ideology over other factors.
Updated On: Aug 5, 2025
  • Economic stability
  • Political ideology
  • Religious persecution
  • Military dictatorship
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The Correct Option is B

Solution and Explanation

The passage makes it clear that in the postwar years, the United States was primarily worried about the spread of communism in Latin America.
It states that the U.S. preferred supporting military dictatorships over reformist leaders if there was any chance those reformers might lean towards the political “left.”
This reflects a Cold War mindset where controlling political ideology, especially preventing communist influence, was a dominant foreign policy goal.
Option (a) is incorrect — while economic stability was important, the primary fear motivating U.S. actions was ideological.
Option (c) is incorrect — there is no mention of religious persecution in the passage as a driving concern.
Option (d) is incorrect — the U.S. often supported military dictatorships, so it was not the problem they sought to eliminate.
Thus, the main concern was political ideology, specifically the prevention of communism, making (b) correct.
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Question: 2

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

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In foreign aid history, when a recipient region rejects assistance, look for underlying issues of sovereignty, control, and perceived dominance by donor nations.
Updated On: Aug 5, 2025
  • it primarily provided money for social reform subsidies.
  • the moneys provided were only for specific performance projects.
  • it constituted an extension of the Marshall Plan into Latin America.
  • it was being used as a means to control the economic destiny of Latin America.
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The Correct Option is D

Solution and Explanation

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.
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Question: 3

Which of the following is most closely associated with the concept of a Marshall Plan for Latin America?

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When a question asks for a “Marshall Plan” equivalent, look for large-scale, multi-year, cooperative economic recovery programs, not one-time or limited agreements.
Updated On: Aug 5, 2025
  • The Good Neighbour Policy.
  • The Alliance for Progress.
  • The Act of Bogota.
  • The Monroe Doctrine.
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The Correct Option is B

Solution and Explanation

The passage describes President Kennedy’s proposal for the “Alliance for Progress” as a ten-year plan designed to achieve for Latin America what the Marshall Plan had achieved for Western Europe.
This plan aimed to improve living standards, reduce the appeal of communism, and foster peaceful economic and social reforms across the region.
Option (a) The Good Neighbour Policy refers to Roosevelt’s earlier, largely non-interventionist approach, not a large-scale development plan.
Option (c) The Act of Bogota was an important cooperative economic measure but on a smaller scale; it was not framed as a comprehensive Marshall Plan-style initiative.
Option (d) The Monroe Doctrine dates back to the 19th century and primarily aimed to oppose European colonization in the Americas, not to promote development aid.
Thus, the clear equivalent to a Marshall Plan for Latin America is (b) The Alliance for Progress.
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Question: 4

According to the passage, the fundamental change in U.S. foreign policy directed towards Latin America:

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When identifying a “fundamental change” in policy, focus on the new strategy described, not just previous practices or isolated outcomes.
Updated On: Aug 5, 2025
  • resulted in a deterioration of U.S.–Latin American relations.
  • was responsible for Peron remaining as a dictator in Peru.
  • recognized that economic aid alone would prevent social revolutions.
  • provided for increased military and economic aid to prevent the spread of communism in Latin America.
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The Correct Option is D

Solution and Explanation

The passage describes how U.S. policy evolved under leaders like Eisenhower and Kennedy to include significant economic aid and some military support, with the explicit aim of preventing communist influence in Latin America.
Earlier approaches tended to avoid reform and support the status quo, often backing military dictators who opposed leftist movements.
Kennedy’s “Alliance for Progress” represented a shift towards large-scale aid programs designed to improve living standards and thus reduce the appeal of communism.
Option (a) is incorrect — while there were tensions, the focus of the question is on the *policy change*, not on worsening relations.
Option (b) is incorrect — Perón was from Argentina, not Peru, and his dictatorship was supported earlier as part of status quo maintenance, not as part of the described fundamental change.
Option (c) is incorrect — Kennedy’s plan recognized that economic aid needed to be paired with social reforms, not that aid alone was sufficient.
Option (d) correctly captures the dual nature of the policy shift: using both economic and, when necessary, military aid to prevent communist spread.
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Question: 5

Which of the following statements is not true?

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For “NOT true” questions, carefully check each option against the passage; even partially correct statements can be false if they misrepresent the main emphasis or priority described.
Updated On: Aug 5, 2025
  • Mexico and Chile did not experience the general social crises that are common to the majority of Latin American countries.
  • President Eisenhower continued in practice the theory that economic aid was the best defense against communist incursion into Latin America.
  • The Good Neighbour Policy favoured a multilateral interpretation of the Monroe Doctrine.
  • The traditional U.S. approach in Latin America was to protect the status quo.
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The Correct Option is B

Solution and Explanation

Option (a) is true — the passage explicitly states that Mexico and Chile were partial exceptions to the widespread economic and social crises in Latin America.
Option (b) is not true — Eisenhower's approach often leaned towards maintaining the status quo and supporting dictators rather than using economic aid as the *primary* defense against communism. While he did introduce some economic programs, they were often seen by Latin Americans as economic imperialism, and his priority was stability over reform.
Option (c) is true — Roosevelt’s Good Neighbour Policy indeed promoted a more multilateral version of the Monroe Doctrine, signaling less unilateral U.S. intervention.
Option (d) is true — the passage emphasizes that historically, U.S. policy in Latin America favored established regimes to protect existing power structures.
Thus, (b) is the statement that does not align with the passage.
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Question: 6

Which of the inferences can be drawn if everything said in the passage were assumed to be true?

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Inference questions require you to deduce what logically follows from the passage, even if it is not directly stated, while ensuring no new unsupported assumptions are added.
Updated On: Aug 5, 2025
  • Rebellions are fuelled by social reforms and avoided by supporting established authorities or continuing the present state of affairs.
  • The American policy towards Asia can be called an overall success, though small in magnitude.
  • Kennedy, in 1958, wanted America to aid South American countries to acquire more support in their fight against communism.
  • Eisenhower rejected the Marshall Plan, whereas Kennedy implemented a similar one.
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The Correct Option is C

Solution and Explanation

Option (a) is incorrect — the passage implies that rebellions in Latin America were fuelled by economic inequality and lack of reforms, not by reforms themselves; supporting the status quo often increased revolutionary tendencies.
Option (b) is irrelevant — while the opening sentence contrasts U.S. policies toward Europe, Asia, and Latin America, it does not quantify Asia policy as “small in magnitude” or focus on that measure.
Option (c) is correct — in 1958, Senator Kennedy had already argued for raising living standards in Latin America as the best way to prevent communism, showing he wanted proactive aid to South American nations in their anti-communist efforts.
Option (d) is misleading — Eisenhower did not reject the Marshall Plan; the Marshall Plan was specific to postwar Europe. Kennedy’s “Alliance for Progress” was similar in spirit but focused on Latin America, not a continuation or rejection of the original European plan.
Thus, (c) is the valid inference from the passage.
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