U.S. foreign aid assistance program for Latin America established in 1961 by John F. Kennedy. It was created principally to help modernize Latin American states by financing multi-sector reforms in areas such as education and health while countering the appeal of revolutionary politics, such as those adopted in Cuba. The charter of the alliance, formulated at an inter-American conference in Punta del Este, Uruguay, in Aug., 1961, called for an annual increase of 2.5% in per capita income, the establishment of democratic governments, more equitable income distribution, land reform, and economic and social planning.

Latin American countries (excluding Cuba) pledged a capital investment of $80 billion over 10 years. The United States agreed to supply or guarantee $20 billion. By the late 1960s, however, the United States had become preoccupied with the Vietnam War, and commitments to Latin America were reduced. Moreover, most Latin American nations were unwilling to implement needed reforms. The Organization of American States disbanded the permanent committee created to implement the alliance in 1973.