He initiated the alliance for progress for development of Latin America

In 1961, President John F. Kennedy established the Alliance for Progress with the goal of establishing economic cooperation between the United States and Latin America. Between 1962 and 1967, the United States contributed $1.4 billion per year to Latin America's growth. In the 1960s, Latin America's regional output per capita increased by 2.6 percent, beating the program's aim of 2.5 percent. Adult illiteracy was reduced, and housing, financial institutions, tax laws, and administration were improved. The Alliance for Progress had flaws and by the 1970s, it had failed, owing to Latin American countries' refusal to adopt critical reforms and presidents after Kennedy's lack of support for the initiative.

In May 1961, Congress approved a $500 million initial grant in response to Kennedy's request. During the next ten years, billions of dollars were spent on the Alliance, but its success was sporadic, and there were numerous reasons why the initiative failed. Because it smelt of socialism, American politicians were hesitant to grant cash for land redistribution schemes in Latin America. The majority of the monies were funneled towards pet projects by Latin American elites, who profited themselves while doing little to help the great mass of their people. The Alliance's attempt to introduce democracy to Latin America was clearly a failure: by the time the program ended in the early 1970s, 13 governments in the region had been replaced by military control.