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Foreign Policy and Human Rights Violations in Latin America: A Comparative Analysis
of Foreign Aid Distributions
Author(s): Lars Schoultz
Source: Comparative Politics, Vol. 13, No. 2 (Jan., 1981), pp. 149-170
Published by: Ph.D. Program in Political Science of the City University of New York
Stable URL: http://www.jstor.org/stable/421620 .
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Lars Schoultz
0010-4159/81/0115-0002$05.00/1
@ 1981 The City University of New York 149
152
153
the sixteen U.S. governmentfiscal years from 1962 through 1977. Primary
emphasis is placed upon the three fiscal years of 1975, 1976, and 1977. In
addition to the overall aid figures, the data are disaggregatedinto economic
assistance(throughboth the Agency for InternationalDevelopment[AID] and
the Food for Peace [PL480] program)and military aid of various types.
At the presenttime, there is no consensus on the theoreticalsignificance or
the political meaning of foreign aid disbursements. Because it is not the
purposeof this paperto addressthis issue of the functionof foreignassistance,
aid will not be employed here as an indicator of any professed or ulterior
goal. Thus, in this context the size of the U.S. aid programto any specific
countrydemonstratesnothingmore thanthe amountof money the government
wishes to provide the government of that country for a variety of reasons
related to U.S. foreign policy. While the most frequently cited reason for
providingaid is a commitmentto socioeconomic development, and while (as
noted above) there are abundantdata to demonstratethat much aid has non-
developmentalobjectives as well, the examinationof these objectives is not
the focus of this paper. More specifically, the questionof causality cannot be
addressedwith confidence. The theoreticalliteratureon the relationshipbe-
tween U.S. foreign assistance and human rights suggests that the latter is
influenced by the former (see note 8), but this association has never been
confirmed with systematic empiricalevidence. Since there is little empirical
theory by which to interpretthe causal implicationsof the data presentedin
this study, the objective of this paper is simply to determine the extent to
which changes in one variable(humanrights violations) are related to varia-
tion in another(the distributionof foreign aid); i.e., to discover whetherthere
is concomitantvariation.
Stated anotherway, it is impossible to contest an assertionthat the correla-
tions in the following tables are spurious. A spurious correlation, it will be
remembered,is one where the observedimpact of one variableupon a depen-
dent variable is, in fact, the result of the influence of other, unobserved
variables. Cases exist which demonstratethat the repressionof humanrights
has been caused or encouragedby U.S. foreign assistance-Chile and Brazil
are the most completely documentedexamplesl2-but even in these cases it
remainsimpossible to determinethe level of respect for humanrights had no
aid been provided by the United States. If we wish to explore U.S. policy
towardBrazil in the 1960s or to Chile in the 1970s, we can study the ebb and
flow of aid disbursementsto the various governmentsof these two countries
and, in conjunctionwith otherdata on the purposeof aid, we can relateaid to
broaderconcerns of U.S. foreign policy. What we cannot determine from
these or, perhaps, any other data is whethera decline (or an increase) in aid
will cause a subsequentchange in the recipientgovernment'slevel of human
rights violations.
154
Results
The results presentedhere are for both absolute and relative levels of foreign
assistance. Absolute assistance is defined as the gross dollar amount of aid
providedeach Latin Americangovernment.Because the twenty-threenations
of LatinAmerica vary so widely, particularlyin their populationsize, a focus
upon the absolute volume of aid distortssome aspects of the aid/humanrights
relationship. Relative (per capita) assistance recognizes these enormous
populationdifferences. The examinationof absolute and relative aid levels is
complementary,describingfrom two perspectivesUnited States aid programs
in Latin America.
155
3.78 -
3.50- Paraguay
Urugua
3.22 - Haiti
Y = 1.27 + 1.00X
0-- 2.94- r= +.68
r. Guatemala
0
> 2.66-
:
a 2.39- El Salvador *
C Dominican
a Republic
a 2.11-
:
10. /Ecuador Panam
5 1.83- *
Mexico
..J
1.55- •
Surinam Guyana
Venezuela *
1.27 - Jamaica
U.S. Aid
Total
Economic and Total (Logl0 X+l) Total Foreign
Fiscal Military Economic Food for Military Military
Years Assistance Assistance A.I.D. Peace Assistance Sales
* N = 23.
** Too few cases available for analysis.
Source: Data on foreign assistance provided by the Bureau for Program Policy
and Coordination, Agency for International Development.
received little aid and maintaineda relatively high level of respect for human
rights, while a second cluster of the remaining sixteen countries received
comparativelylarge amountsof assistance and had a low level of respect for
human rights. Colombia is the only major deviation from this pattern.
Figure 2 is a scatterplotrelating U.S. aid and human rights violations in
1976. Since data on the level of humanrights violations are the same in both
Figure 1 and 2, between 1975 and 1976 changes in aid distributionscaused the
aid/humanrights correlationto drop from +.68 to + .50. In Figure 2 the two
clusters have largely disappeared, and several cases stand isolated on the
scatterplot. Except for the five very deviant cases of Uruguay, Paraguay,
Costa Rica, Venezuela, and Colombia, the observedvalues are much closer to
the predictedvalues in Figure2 (1976) thanthey were in Figure 1 (1975).1" As
it stands, in Figure 2 the slope of .81 barely exceeds the standarderror of
estimate of .77. In plain English, the two scatterplotsindicate that, while the
human rights/foreignaid relationshipis far from perfect, in both 1975 and
1976 United States aid tended to flow disproportionatelyto the hemisphere's
relatively egregious violators of fundamentalhumanrights.
Figure 3 is a scatterplotrelating U.S. aid in FY 1977 and the level of
humanrightsviolationsin 1976. While the correlationremainshigh (+.49), it
is obvious from Figure 3 that this simple summary statistic masks several
significant changes. Between 1976 and 1977 two countrieswith very repres-
sive governments (Argentinaand Brazil) experienced major aid reductions,
and three relatively nonrepressive governments (Costa Rica, Guyana,
Jamaica)obtainedmajoraid increases. By 1977 the clear patternin Figure 1
had disappeared,makingthe standarderrorof the regressionequationso large
that it would be inappropriateto draw a regression line. Nonetheless, the
placement of Chile, Bolivia, Guatemala,and Haiti in Figure 3 confirms the
157
3.78 -
3.50 -
Uruguay Paraguay
3.22 - H
M
c 2.39 - 2*
-
El Salvador
E
1 2.11 Per
I
o Ecuador P
wa 1 83-
S1.83Mexico o
-J
1.55
Guyana*
Venezuela
1.27 - Surinam
? Costa Rica
1.00 Trinidad and Tobago
-
0.0 0.19 0.38 0.57 0.77 0.96 1.15 1.3
United States Aid
(Log10 X + 1)
EconomicAid. One of the two majorcomponentsof the total U.S. foreign aid
programis economic aid which, in turn, is composed primarilyof funds from
the Agency for InternationalDevelopmentand the Food for Peace program.19
The relatively strong correlationsbetween economic aid and human rights
violations (see Table 2) suggest that in FY 1975-FY 1977 the international
protectionof humanrights was not a central concern of economic assistance
decision making. But it should also be recognized that some of these correla-
tions are not strong and that others tend to fluctuate dramaticallyover short
periods of time. Between 1975 and 1976, for example, the correlationbe-
tween AID disbursementsand humanrights violations droppedfrom +.50 to
+.24. Most of this change occurredthroughmajor declines in aid to Brazil
and Uruguay, and through a substantialboost in aid to Costa Rica. On the
otherhand, during 1976 the repressivegovernmentsof Chile, earthquake-torn
Guatemala, Haiti, and Nicaragua continued to receive relatively large
amountsof assistance from AID.
Between 1976 and 1977 the correlationbetween AID disbursementsand
human rights violations rose from +.24 to +.37. Given the low numberof
cases from which these correlationswere computed, a change of this mag-
nitude should not be considered highly significant. It is worth noting, how-
ever, that the correlation did not rise in response to a clear pattern. In
FY 1977 AID reducedits assistanceto very repressive(Chile, the Dominican
Republic), moderately repressive (Panama), and nonrepressive (Colombia,
Costa Rica) countries. Similarly, AID increased funding to both repressive
Haiti and to nonrepressiveJamaica. The inspection of these individualcases
reveals no perfect patternof AID assistancebeing directedtowardrepressive
governments. When considering all Latin American countries, however,
during FY 1975-FY 1977 AID's funds tended to be directed toward coun-
tries with repressivegovernments.Given the findings in Table 2, it cannot be
argued that respect for human rights was a major criterion in AID decision
making.
No major changes occurred in the proportionaldistributionof Food for
Peace credits and grantsbetween 1975 and 1977. As a result, the correlations
159
th Nicaragua
c 2.4 Guate
> 1.83Mexico
-J
1.55- Venezuela *
Guyana
0 Colombia
*
1.27 - Surinam
161
Table3 PearsonCorrelations
betweenRelative(PerCapita)Levelsof U.S. Aid and
Levelof HumanRightsViolations,LatinAmerica,1975-77*
* N = 23.
** Too few cases available for analysis.
Source: Bureau for Program Policy and Coordination, Agency for International
Development.
162
aid, while Brazil was third in absolute terms yet twentieth in per capita aid.
Since both the Argentineand Braziliangovernmentsare rankedas extremely
repressive, the relative aid/human rights correlation would have declined
somewhat had not Nicaragua been the third major change in the ranking,
moving up from twelfth in absoluteaid to second in relative aid. The remain-
ing twenty nations are rankedroughlythe same on both absolute and relative
scales. In 1976 Chile was first in absolute aid and third in relative aid;
Guatemalawas second in absolute aid and fourth in relative aid; Bolivia was
sixth by either calculation. Because most of the other differences are minor,
nearly everything written above regarding human rights and absolute aid
levels applies as well to the relationshipbetween aid per capitaandthe level of
humanrightsviolationsby recipientgovernments.In neithercase is it possible
to find a negative correlationwhich would indicate that U.S. aid programs
favored nonrepressivegovernments.
While the correlations between various types of aid and human rights
violations are far from perfect, these findings for FY 1975-FY 1977 reveal
not isolated instancesbut rathera clearpatternof aid distributionsthatfavored
Latin American governments which abused their citizens' human rights.
During this period, aid officials regularlydenied the existence of a positive
correlationbetweenthe level of assistanceandthe violation of humanrights.22
In those individualcases where the linkage was evident beyond doubt, offi-
cials insisted that other equally importantforeign policy concerns required
that humanrightsconsiderationsbe minimizedin aid decision making.23Even
in the era of relatively intense governmentalinterest in humanrights during
the Carteradministration,only in isolated instanceswere humanrightsfactors
permittedto become the principaldeterminantof aid distributions.Aid offi-
cials perceivedotherlegitimatereasonsfor the grantingof foreign assistance.
163
Stephen Solarz (D-N.Y.) noted, "We ought to be helping the poor people all
over the world. The fact that they have a repressiveregime should not mean
they are denied the opportunityto eat." 24
In the view of some membersof Congress, aid officials occasionally inter-
pret the needy-peopleclause as a loophole permittingvarious types of assis-
tance to governmentswhich otherwisewould be ineligible on the basis of their
humanrights records. Argumentsin favor of using humanneeds to minimize
human rights considerations have also been offered by champions of the
"trickle-down" approachto economic development. In urging a restoration
of aid to Chile, for example, RepresentativeCharles Wilson (D-Texas) ar-
gued: "I don't think we serve the cause of human rights by making the
Chilean peasants drink dirty water.... The rich can only drink so much
water. So surely some of this clean water is getting to the poor."25 A related
argument against human rights-induced aid reductions was advanced by
former Assistant Secretary of State Terence Todman, who suggested that
humanrights violations are caused by the lack of fulfillment of basic needs.
Thus, the provision of aid can eliminate "the kind of conditions that are the
world's most widespread source of deprivation of basic human rights."'26
Most humanrights activists agreed with Todman's position, but argued that
aid to the Pinochetsand Somozas of the hemispheredid little to meet the basic
needs of impoverishedcitizens.
In any event, the original clause in the Harkin Amendmentis vague. Its
legislative historyin unclear, and while some key membersof Congress have
called it a major loophole, others have insisted that it is a stringentstipula-
tion.27 The Ford administrationpreferredthe former interpretation,defining
the term in such a way that assistance could be provided to any regime.
AdoptingRepresentativeWilson's argument,in early 1976 AID's legal coun-
sel wrote an opinion that "the decision on whether assistance will directly
benefit needy people.., should be based upon the 'principalpurpose' of the
assistance. If the principalpurposeis to benefit the needy people ... [then] the
intent of Congress has been carried out, notwithstandingthat the intended
class of beneficiariesmay not be the initial recipientof resourcesprovidedto
the project."28 Using this definition, AID effectively ignored the Harkin
Amendment.
In 1977 the battle over what constitutes aid to needy people was joined
during an attempt to extend the Harkin Amendmentto the Food for Peace
authorization.This was a particularlyappropriateplace to decide the issue.
Food aid is clearly beneficial to needy people, yet the process of providing
this aid underTitle I (creditsales) is such thatrecipientgovernmentscan make
at least a temporaryprofit on the transaction.The U.S. Departmentof Ag-
riculture (USDA) provides a purchasing government with low-interest,
long-termcreditthroughthe CommodityCreditCorporation(CCC).29In turn,
the recipientgovernmentuses the credit to buy food in the United States and
164
Table 4 Zero-andFirst-Order
PartialCorrelations
betweenU.S. EconomicAid and
HumanRightsViolations,LatinAmerica,1976*
* N = 23.
Source: Bureau for Program Policy and Coordination, Agency for Interna-
tional Development.
166
rights violations in Latin America. In cases of equally poor (or wealthy) Latin
American countries with dissimilar records on human rights protection, the
United States tended to distributeits aid to the more repressive countries.
Viewed from a more positive perspective, this finding also demonstrates
that human rights considerationsneed not be ignored if aid programsare to
focus upon needy people in Latin America. It is possible for the United States
to direct its economic aid to impoverishedcitizens of Latin Americancoun-
tries with governmentswhich respecttheir citizens' humanrights. This possi-
bility would no doubtbe greetedwith scantenthusiasmby the millions of truly
poverty-strickenLatin Americans who are burdenedwith the added misfor-
tune of a repressivegovernment.TerenceTodmanoften articulatedthis point
of view in his aid recommendations.Following his superiors' decision to
block a $10 million Food for Peace loan to Chile in September 1977, for
example, Todmancomplainedpublicly that "poor, hungry, miserablepeople
ought not to be denied food, health care, clean water, medicine-the things
necessaryto life-just to make a point with a government.All you're doing is
adding to their misery."35 Critics disagreed. In the specific case of Chile,
they noted that the proceeds from open-market sales of food aid went to
finance the government'sarmsimports.By 1977 Chile had become one of the
best customers of U.S. arms manufactures-fifth in the world behind Iran,
Israel, Saudi Arabia, and Jordan. RepresentativeDonald Fraser concluded
that "one of the majorbenefits to Chile of Public Law 480 Title I loans is to
indirectlyassist Chile in purchasingarms from the United States."36
Conclusion
These data and common sense suggest that there is no simple answer to the
dilemma facing aid officials who must weigh multiple criteria in reaching
theirdecisions. Few studies of aid decision making, includingthis one, would
wish to underestimatethe difficulties these officials face. What the findings
from the data presentedhere clearly demonstrate,however, is that duringthe
mid-1970s United States aid was clearly distributed disproportionatelyto
countries with repressive governments, that this distributionrepresenteda
pattern and not merely one or a few isolated cases, and that humanneed was
not responsible for the positive correlationsbetween aid and human rights
violations.
Now thatthese threefacts have been established,researcherscan turnto the
more intriguingquestion of why in the mid-1970s the United States tended to
awardrelatively large amountsof aid to Latin Americangovernmentswhich
repressedtheir citizens' humanrights. It is tempting to begin such a discus-
sion here, for certain features of the scatterplots,particularlythe unusually
stronganticommunismof several majoraid recipientsand, later, the emphasis
167
NOTES
received no food aid in 1976, the correlationbetween the Food for Peace Programand the level of
humanrights violations would have been +. 13 instead of + .30.
21. Milton Leitenberg, "Notes on the Diversion of Resourcesfor MilitaryPurposesin Devel-
oping Nations," Journal of Peace Research, 13 (1976), 113; HubertH. Humphrey,"Economic
Disengagementfrom Vietnam," New YorkTimes, 5 June 1974; EmmaRothschild, "Is It Time to
End Food for Peace?" New YorkTimes Magazine, 13 March 1977, p. 44.
Title II of the InternationalDevelopmentand Food Assistance Act of 1977 (PL95-88) amended
the AgriculturalTrade Development and Assistance Act of 1954 (PL83-480) to include the
now-standardhuman rights clause.
22. Examplesof implicit or explicit denials include State Departmenttestimony in the follow-
ing: InternationalProtection of Human Rights, fn. 8, pp. 819-20; Political Prisoners in South
Vietnamand the Philippines, fn. 8, pp. 87-9; and U.S., Congress, Senate, Committeeon Ap-
propriations,Foreign Assistance Appropriations,1965, 89th Cong., 2d Sess., 1964, p. 82.
23. See, for example, the statementto this effect by formerAID AdministratorBell inForeign
Assistance Appropriations,1965, fn. 22, p. 82.
24. U.S., Congress, Senate, Committeeon Agriculture,Nutrition,and Forestry,Subcommit-
tee on Foreign AgriculturalPolicy, Future of Food Aid, 95th Cong., Ist Sess., 1977, p. 73.
25. U.S., Congress, House, Committeeon Appropriations,Subcommitteeon ForeignOpera-
tions and Related Agencies, Foreign Assistance and Related Agencies Appropriationsfor 1978,
Part 2: Agencyfor InternationalDevelopment, 95th Cong., Ist Sess., 1977, p. 159.
26. Terence A. Todman, "Statement before the Subcommittee on Inter-AmericanAffairs,
House InternationalRelations Committee," March 1, 1978. (mimeo.).
27. U.S., Congress, House, Committeeon InternationalRelations, Subcommitteeon Interna-
tional Organizations,Chile: The Status of Human Rights and Its Relationshipto U.S. Foreign
Assistance Programs, 94th Cong., 2d Sess., 1976, p. 21.
28. Ibid., p. 114.
29. In FY 1977, for example, PL480 sales of $15 million of wheat to Chile were financed for
twenty years at an annualinterestrate of 3 percent, with a two-year grace period before the first
payment. U.S., National Advisory Council on InternationalMonetary and Financial Policies,
Annual Report, 1977, p. 353.
30. Future of Food Aid, fn. 24, p. 72; Chile: The Status of HumanRights, fn. 27, pp. 21-2.
31. PL95-88, Sec. 111(a).
32. House Report 95-240, p. 49.
33. The povertycriterionof the InternationalDevelopment Association, for example, is stated
in terms of per capita annualincome. A primarycriterionfor inclusion on the UN's lists of both
Least Developed Countriesand Most Seriously Affected Countriesis low per capita GNP. Per
capita GNP also determinesin partthe nations included on the list of Food PriorityCountries,a
category employed by the UN World Food Council.
34. Per capita GNP is used as a primaryindicatorof humanneed in R.D. McKinlay and R.
Little, "A ForeignPolicy Model of U.S. BilateralAid Allocation," WorldPolitics, 30 (October
1977), 66. For an alternativeto GNP as the definition of humanneed in the Third World, see
Denis Goulet, The Cruel Choice (New York, 1971).
35. In Congressthe SenateAppropriationsSubcommitteeon ForeignOperationshas takenthis
same position, arguingthat "to sever all ties would be to cut ourselves off from the peoples of
these countriesand to leave them underthe darknight of oppression.We can standafarand curse
the darkness,or we can try to bringthem light." U.S., Congress, Senate, Committeeon Approp-
riations, Foreign Assistance and Related Programs AppropriationsBill, 1978, 95th Cong., Ist
Sess., 1977, p. 20. The chairpersonof the House AppropriationsSubcommitteeon Foreign
Operationshas a contraryopinion: "Every conceivable abominationhas been perpetratedin the
nameof the poorand the needy .... We have plenty of poorpeople we can help withouthaving to
pay tributeto a bunchof ruthlessdictators."Foreign Assistanceand RelatedAgencies Appropri-
ations for 1978, Part 2: Agencyfor InternationalDevelopment, fn. 25, pp. 374-5.
36. Chile: The Status of HumanRights, fn. 27, p. 2; New YorkTimes, 16 October 1977, sec.
IV, p. 3.
170