US general calls for Marshall Plan in Latin America to counter China and Russia

US general calls for Marshall Plan in Latin America to counter China and Russia
US Southern Command Chief, Gen. Laura Richardson, has called on US lawmakers to increase engagement in Latin America, where rivals China and Russia are gaining ground. / US Army
By Marco Cacciati July 25, 2024

The head of US Southern Command has urged American leaders to develop a comprehensive economic aid programme for Latin America, akin to the post-World War II Marshall Plan, in a bid to counteract growing Chinese and Russian influence in the region.

Speaking at the Aspen Security Forum in Colorado last week, General Laura Richardson highlighted the vulnerability of Latin American nations still grappling with the economic aftermath of the COVID-19 pandemic. She warned that this weakness has created an opening for Beijing and Moscow to expand their presence in the Western Hemisphere.

"We need a 'Marshall Plan' for the region or an economic recovery act like the one in 1948, but in 2024, 2025," Richardson stated, drawing parallels to the historic US aid programme that helped rebuild Europe after World War II.

The general expressed concern that Latin American leaders fail to fully appreciate existing US investments in the region. "Even though foreign direct investment is really high, they don't see it," she noted. "All they see are the Chinese cranes and all the development and the Belt and Road Initiative projects."

Richardson's comments come amid growing unease in Washington about China's expanding economic footprint in Latin America, particularly through its Belt and Road Initiative. The US military leader voiced suspicions about the potential dual-use nature of Chinese investments in critical infrastructure, including deepwater ports, 5G networks, and space technology.

"I'm concerned that they will quickly turn into military applications," she cautioned, noting that many of these projects are undertaken by Chinese state-owned enterprises.

The proposed scheme would aim to offer a compelling alternative to Chinese economic engagement, while simultaneously addressing the region's post-pandemic recovery needs. However, critics may question the feasibility of such an ambitious programme given current US budget constraints and domestic political considerations.

As tensions between the US and China continue to escalate on multiple fronts, Latin America is increasingly becoming a key battleground for economic and geopolitical influence. Richardson's call for a transformative aid programme underscores the strategic importance Washington places on maintaining its traditional sphere of influence in “America’s backyard”.

The original Marshall Plan, launched in 1948, provided $13.3bn in aid to 16 European countries, helping to rebuild war-torn economies and cement US economic ties with Western Europe. Whether a similar initiative, devised after a devastating global conflict, could achieve comparable results in today's Latin America remains a subject of debate among policymakers and regional experts.

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