Home
/
RELIGION & LIBERTY ONLINE
/
Does Central America need a ‘Marshall Plan’?
Does Central America need a ‘Marshall Plan’?
Apr 29, 2026 4:09 AM

Julián Castro is running for the Democratic nomination for president. Castro was Secretary of Housing and Urban Development under president Barack Obama, and before that he was mayor of San Antonio, TX. He is currently polling at a little over 1%, and he reported raising $1.1 million in campaign funds in the first quarter of the year.

As a Mexican-American, Castro is currently the only Latino candidate. As such, it is not surprising that he has put immigration at the center of his campaign. Castro aims to provide an alternative answer to the problem of illegal pared to president Trump’s hard-line immigration policies, such as separating migrant children from their parents and thus-far unsuccessfully campaigning to build a wall along the Mexican border.

So what would Castro do differently?

Unlike fellow-candidate Sen. Elizabeth Warren (D-MA), who has a detailed plan for every conceivable policy issue outlined on her Medium account, the wonky details of Castro’s plan are still in development. The short version, as reported by The Guardian last month, involves,

rapid immigration reform to carve out a pathway to citizenship for all 11 million people living without permission in the country; a radical restructuring of the federal agency Immigration and Customs Enforcement (ICE) to make it more humane; and the beefing up of security at border entry points using new technologies.

In brief, Castro’s plan is not über-libertarian. He favors a pathway to citizenship for undocumented immigrants (which has had bipartisan support in the past), restructuring ICE, and increasing border security.

I state this at the outset simply to note that the issue plex and multifaceted, and clear thinking requires that we don’t just group people into big, catch-all categories of “for” or “against” immigrants or open borders or whatnot. Christians should care both about the laws of their own nations as well as the well-being of their neighbors in need. And clear thinking helps us do that better.

In particular, I’d like to focus on just one aspect of Castro’s immigration position, which he breaks into three broad categories on his website. The categories include (1) “Reforming our Immigration System”; (2) “Creating a Humane Border Policy”; and (3) “Establishing a 21st Century ‘Marshall Plan’ for Central America.” It is the last of these three, his new Marshall Plan, that I want to examine.

On the face of it, there is some decent justification for Castro’s proposed Marshall Plan (so-named for the post-WWII US aid to Western Europe). No one wants to leave their country-of-origin. (I don’t even want leave my city-of-origin.) But when conditions e unbearable for the well-being of one’s family, people seek refuge abroad. It would be ideal if everyone entered the country legally, but that isn’t always the case. Actually, most illegal immigration in the last es from people who enter legally but overstay their visas. That said, desperate circumstances bring desperate economic calculations. Some people still do cross the border illegally. That people risk the hardship of being undocumented immigrants in the United States indicates that their countries-of-origin have gravely failed them. The difficulty of the trip and the near-certainty of poverty awaiting them are weighed to be worthwhile costs of fleeing suffering in their homelands.

So I will begin by saying that Castro’s general idea — that improved conditions in Central American countries would decrease the number of people fleeing them — is, indeed, both reasonable and humane. But is a new Marshall Plan the way to achieve that?

While Castro includes several bolded subheadings under his Marshall Plan category, much, unfortunately, is left to the imagination. The most charitable reading would be that Castro wants to increase aid to Central American countries, but at the same time that he wants to increase transparency and efficiency in the use of that aid.

Again, I think he’s right to emphasize the need for increased rule of law, anti-corruption efforts, and so on. But he isn’t clear how that will be plished. Furthermore, as he noted in his interview with The Guardian, “oftentimes strongmen leaders have used the US as a foil to prop themselves up.” How would increasing US involvement, including, according to his website, “[t]arget[ing] illicit networks and transnational criminal organizations,” improve our relations with Central Americans and reduce the anti-American rhetoric of “strongmen leaders”?

Worst-case scenario, Castro is simply presuming that the post-WWII economic recovery of Western Europe, and West Germany especially, was caused by the Marshall Plan.

While I’m unsure whether the Marshall plan was, on-the-whole, good or bad, it can be plainly stated that it did not cause what has been called the “German economic miracle.” As economist David R. Henderson noted for the Concise Encyclopedia of Economics,

The reason is simple: Marshall Plan aid to West Germany was not that large. Cumulative aid from the Marshall Plan and other aid programs totaled only $2 billion through October 1954. Even in 1948 and 1949, when aid was at its peak, Marshall Plan aid was less than 5 percent of German national e. Other countries that received substantial Marshall Plan aid exhibited lower growth than Germany.

Moreover, while West Germany was receiving aid, it was also making reparations and restitution payments well in excess of $1 billion. Finally, and most important, the Allies charged the Germans DM7.2 billion annually ($2.4 billion) for their costs of occupying Germany. (Of course, these occupation costs also meant that Germany did not need to pay for its own defense.) Moreover, as economist Tyler Cowen notes, Belgium recovered the fastest from the war and placed a greater reliance on free markets than the other war-torn European countries did, and Belgium’s recovery predated the Marshall Plan.

To be fair to Castro, perhaps this all just amounts to bad branding for his proposal. But presuming he intends some connection between his new, Central American Marshall Plan and the original one, the idea that Central America could benefit just like Western Europe did is misguided. As a matter of historical fact, the Marshall Plan did not cause the post-WWII economic recovery of Western Europe in general nor West Germany in particular. In general, economic liberalization was the driving force. Currency reform and the removal of price controls were the key German policies, and they were enacted overnight against the mendation of occupying powers, such as the US and the UK.

According to The Guardian, Castro wants to focus especially on El Salvador, Guatemala, and Honduras. Many of the recent asylum-seekers at the Mexican border came from the latter two of these countries. Looking at their most recent rankings on the Heritage/Wall Street Journal Index of Economic Freedom, these countries all have declined in the areas of “Government Integrity,” “Judicial Effectiveness,” “Business Freedom,” “Monetary Freedom,” and “Trade Freedom.” Furthermore, all post low scores in terms of “Property Rights” and “Labor Freedom,” though some are trending upward. Of these things, what can a foreign country most easily and directly effect?

I can think of only one: trade freedom. Now, in the past the US has tried to improve many areas through stipulations attached to aid. But a look at these countries and others that have received considerable US aid shows that doesn’t often play out as we’d like it. Increasing our trade relationship, however, would by its nature require the lowering of trade restrictions and, thus, the increase of trade freedom. It wouldn’t be an economic miracle, but perhaps it could be a start.

In the end, I’m skeptical how much power the US really has over the inner-workings of foreign economies, especially when the proposal is only to use soft power like the prospect of increased aid. Rather than an example to emulate, the lesson to be learned from the Marshall Plan should be how limited efforts to improve a nation’s economy and decrease corruption and crime from the outside can be. That sort of change e from within.

Image credit: Former Secretary of Housing and Urban Development Julian Castro speaking with supporters at a campaign rally for Democratic gubernatorial nominee David Garcia at Azukar Coffee in Phoenix, Arizona by Gage Skidmore

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Is Mass Incarceration the New Eugenics?
“Has the War on Drugs revived the 19th Century progressive crusade against ‘degenerates’?” asks Anthony Bradley in the second of this week’s Acton Commentary. The United States currently has over 2.3 million prisoners incarcerated in federal, state, and local jails around the country. According to an April report by the Sentencing Project, that number presents a 500 percent increase in incarcerations over the past 40 years. This increase produces “prison overcrowding and fiscal burdens on states to modate a rapidly...
Poverty, Justice, and Christian Love
“We have replaced charity with humanitarianism, says Michael Matheson Miller in the first of this week’s Acton Commentary, “a hollowed-out secular and materialist vision of Christian love.” Concern for the poor is at the heart of Christianity. Saint John Paul II called poverty one of the greatest moral challenges of our time, and to ignore the plight of the poor has consequences for our eternal souls. Pope Francis addressed poverty in Evangelii Gaudium: “Almost without being aware of it, we...
Why McDonald’s Has Become a School for Remedial Work Skills
“Clean up your own mess. Your mother doesn’t work here.” That was a sign, printed on dot matrix printer paper, which hung in the breakroom of the McDonald’s where I worked. While that was nearly thirty years ago, I suspect that same sign is still there (though probably reprinted on a laser printer). But the idea behind it has changed. Your mother may not work at McDonalds, but pany—and others that hire low-skilled employees—are increasingly taking on the role of...
Amnesty International: Release Nigerian Schoolgirls But Legalize Prostitution
Yesterday, Joe Carter wrote about Boko Haram, the terrorist group that has kidnapped hundreds of girls in Nigeria from the Christian school, and is now threatening to sell them into the sex trafficking trade. Salil Shetty, Secretary General of the human rights organization Amnesty International, is calling upon the Nigerian government to initiate a transparent investigation of the girls’ kidnapping and an immediate release of the girls. The horrific abduction shows the serious nature of violations of international humanitarian and...
Deirdre McCloskey on Ethics and Rhetoric in the ‘Great Enrichment’
In a marvelous speech on the origins of economic freedom (and its subsequent fruits), Deirdre McCloskey aptly crystallizes the deeper implications of her work on bourgeois virtuesand bourgeoisdignity. For example, though many doubted that those in once-socialistic India e to see markets favorably, eventually those attitudes changed, and with it came prosperity. As McCloskey explains: The leading Bollywood films changed their heroes from the 1950s to the 1980s from bureaucrats to businesspeople, and their villains from factory owners to policemen,...
An Open Letter Regarding Greece v. Galloway
Katherine Stewart is most unhappy about the recent Supreme Court decision, Greece v. Galloway. The Court upheld the right of the town of Greece, New York, to being town hall meetings with prayer, so long as no one was coerced into participating. And that makes Ms. Stewart unhappy. In an op-ed piece for The New York Times, Ms. Stewart decries the Court’s decision as something akin to a vast, right-wing conspiracy. The first order of business is to remove objections...
Chinese Government Destroys Church; Denies Persecution
Wenzhou, China, is known as the “Jerusalem of the East” because of its large Christian population, a population that had, until recently, enjoyed the Sanjiang Church for worship. A massive structure, Sanjiang Church took over 12 years to build and was a site of pilgrimage for Chinese Catholics. Last week, however, the Chinese government (which had previously lauded the structure’s architecture) deemed the structure “illegal” and destroyed the entire building, bricking off massive statues to hide them from sight. The...
Explainer: Boko Haram and the Kidnapped Christian Girls
What is going on with the mass kidnappings of children in Nigeria? During the night of April 16, dozens of armed men from the terrorist group Boko Haram captured over 300 Christian girls aged 12 to 15 who were sleeping in dormitories at Chibok Government Girls Secondary School in northeast Nigeria. About 50 students managed to escape, but 276 were still being held according to Nigerian state police. The group has since captured 8 more girls. The kidnappers took the...
The Bible and the Principle of Moral Proximity
“The Bible does say a lot of justice and the poor,” notes Kevin DeYoung, “but if we are to be convicted and motivated by truth, we must pay more careful attention to what the Bible actually does and does not say.” An example is a concept that DeYoung says can be derived from the Bible, the principle of moral proximity: The principle is pretty straightforward, but it is often overlooked: the closer the moral proximity of the poor the greater...
Now Available: ‘On Exchange and Usury’ by Thomas Cajetan
Christian’s Library Press has released a new translation of two treatises on exchange and usury by Thomas Cajetan (1469-1534), a Dominican theologian, philosopher, and cardinal. Although best known for mentaries on the Summa of Thomas Aquinas, Cajetan also wrote dozens of other works, including short treatises on socioeconomic problems. Published under the name On Exchange and Usury, these treatises reflect on the banking industry of the early modern era in the context of the Church’s usury doctrine, examining which transactions...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved