This led to relatively modest growth of GDP in these countries during the four-year period the plan was in effect. ", noted Representative Frederick Smith of Ohio. [19], The ERP addressed each of the obstacles to postwar recovery. So, I have a question- so there are many things that are good for the economy such as socialism being a part of communism. PDF The Marshall Plan: Design, Accomplishments, and Significance Not to be confused with. Before proposing anything to Congress in 1947, the Truman administration made an elaborate effort to organize public opinion in favor of the Marshall Plan spending, reaching out to numerous national organizations representing business, labor, farmers, women, and other interest groups. [126], Public opinion polls in 1947 consistently showed strong support for the Marshall plan among Americans. So if Communism could help fix Europe's problems why was the U.S.A. against it? [63], Referring to the Eastern Bloc, the report stated that "the Red Army's liberating role was complemented by an upsurge of the freedom-loving peoples' liberation struggle against the fascist predators and their hirelings. [1][2][5][6] In January 1950, the American newspaper The New York Times published a letter of the Secretary of State Dean Acheson that admitted that the Resolution 39 had been a failure and mentioned that the government was able to support a resolution that would end both issues. Yugoslavia requested American aid. . "[52] While the Soviet ambassador in Washington suspected that the Marshall Plan could lead to the creation of an anti-Soviet bloc, Stalin was open to the offer. But net capital flows were not negative during the 10 years following the end of the war. The Plan was intended to improve the economic situations of the countries of Western Europe and, at the same time, to discourage them from embracing communism. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. During the period leading up to World War II, Americans were highly isolationist, and many called The Marshall Plan a "milestone" for American ideology. Others have proposed a Marshall Plan for Africa to help that continent, and US Vice President Al Gore suggested a Global Marshall Plan. Marshall Plan | Summary & Significance | Britannica It offered the same aid to the Soviet Union and its allies, but they refused to accept it, under Soviet pressure (as was the case for Finland's rejection) as doing so would allow a degree of US control over the communist economies. Furthermore, Gallup polls in England, France, and Italy showed favorable majorities over 60%. His policy of containment is known as the Truman Doctrine. Truman is seated on a chair in front of an outdoor landscape with the US Capitol Building in the background. The Marshall plan was a plan to give economic aid to countries that needed money to rebuild after the war. The cooperative allocation of funds was encouraged, and panels of government, business and labor leaders were convened to examine the economy and see where aid was needed. HISTORY reviews and updates its content regularly to ensure it is complete and accurate. Communism is actually a long term goal. Crawford's thesis was read by future Supreme Court Justice Abe Fortas and presented to President Truman as the solution for Marshall's proposal. Harry S. Truman on April 3, 1948. Britain, for example, received an emergency loan of $3.75 billion. [59], In late September, the Soviet Union called a meeting of nine European communist parties in southwest Poland. Of the some $13 billion allotted by mid-1951, $3.4 billion had been spent on imports of raw materials and semi-manufactured products; $3.2 billion on food, feed, and fertilizer; $1.9 billion on machines, vehicles and equipment; and $1.6 billion on fuel. Over the next decade, a considerable amount of American aid would go to Spain but less than its neighbors had received under the Marshall Plan. Which countries participated in the Marshall Plan? [citation needed] They were much more prosperous than before the war but exports were a small factor in their economy. Australia, Burma, Cuba, Denmark, Ethiopia, France, India, Indonesia, New Zealand, Norway, Sweden, United Kingdom. Through the Office of Policy Coordination money was directed toward support for labor unions, newspapers, student groups, artists and intellectuals, who were countering the anti-American counterparts subsidized by the communists. France, for example, sent 500 missions with 4700 businessmen and experts to tour American factories, farms, stores, and offices. The Technical Assistance Program allowed Europeans to bring home many types of American ideas. Her research focuses on international macroeconomics and on search and matching models of the labor and marriage market. [3], The Marshall Plan aid was divided among the participant states roughly on a per capita basis. In the West, the bombing had destroyed 5,000,000 houses and apartments, and 12,000,000 refugees from the east had crowded in. Francos dictatorship caused Spain to lose out on foreign aid from the United States after World War II;;;a loss that cost Spain a great deal. The Legacy of the Marshall Plan", "Oral History Interview with Lincoln Gordon", "BBC Correspondent Leonard Miall and the Marshall Plan Speech: An Interview", "BLS and the Marshall Plan: The Forgotten Story", "Wiederaufbau Deutschlands mit finanzieller Hilfe der Alliierten", The German Marshall Fund of the United States, Speech by J.F. [124] By looking at polling data over time from pre-World War II to post-World War II, one would find that there was a change in public opinion in regards to ideology. This was based on the belief of Marshall and his advisors that recovery in these larger nations was essential to overall European recovery. The $17 billion was in the context of a US GDP of $258 billion in 1948, and on top of $17 billion in American aid to Europe between the end of the war and the start of the Plan that is counted separately from the Marshall Plan. If you would like to change your settings or withdraw consent at any time, the link to do so is in our privacy policy accessible from our home page.. Most reject the idea that it alone miraculously revived Europe since the evidence shows that a general recovery was already underway. At globalanswers, Josie writes content. It was the ideological influence of the Marshall Plan had the largest impact; Western European business structures became more Americanized, international trade barriers and tariffs were. Indeed, reports at the time suggest that, by the time the plan took effect, Western Europe was already well on the road to recovery. Most of Europe's economies were recovering slowly, as unemployment and food shortages led to strikes and unrest in several nations. Direct link to Jeff Kelman's post How come instead of the p, Posted 7 years ago. On December 17, 1947, the United States agreed to give $40 million to France, Austria, China, and Italy. It was enacted in 1948 and provided more than $15 billion to help finance rebuilding efforts on the continent. Some eighteen European countries received Plan benefits. [51], Speaking at the Paris Peace Conference on October 10, 1946, Molotov had already stated Soviet fears: "If American capital was given a free hand in the small states ruined and enfeebled by the war [it] would buy up the local industries, appropriate the more attractive Romanian, Yugoslav enterprises and would become the master in these small states. This could compare to "Why were the British so concerned about the spread of the French empire?" The resolution was adopted with 34 votes in favour, 6 votes against, 13 abstentions and one absence. Each European capital had an ECA envoy, generally a prominent American businessman who would advise on the process. The reconstruction coordinated under the Marshall Plan was formulated following a meeting of the participating European states in the latter half of 1947. In the popular board game Twilight Struggle the Marshall Plan is represented by a 4-point US Early War card of the same name. Replacing an earlier proposal for a Morgenthau Plan, it operated for four years beginning on April 3, 1948. The main years of autarky are not those commonly considered, but 1947-55, marked by the exclusion of Spain from the Marshall Plan and the Madrid Treaty between Franco's regime and the US. A common American interpretation of the program's role in European recovery was expressed by Paul Hoffman, head of the Economic Cooperation Administration, in 1949 when he told Congress Marshall aid had provided the "critical margin" on which other investment needed for European recovery depended. [80], The Netherlands received US aid for economic recovery in the Netherlands Indies. Commonly known as the Marshall Plan, it aimed to stabilize Europe economically and politically so that European nations would not be tempted by the appeal of communist parties. We also use third-party cookies that help us analyze and understand how you use this website. The American supplier was paid in dollars, which were credited against the appropriate European Recovery Program funds. The plan had bipartisan support in Washington, where the Republicans controlled Congress and the Democrats controlled the White House with Harry S. Truman as president. In 1947, President Harry S. Truman pledged that the United States would help any nation resist communism in order to prevent its spread. Under the London Debts Agreement of 1953, the repayable amount was reduced by 50% to about 15 billion marks and stretched out over 30 years, and compared to the fast-growing German economy were of minor impact. Why didn't the eastern bloc accept the Marshall aid? The rest of the world includes the following countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, Hong Kong, Iceland, Japan, Mexico, New Zealand, Peru, Singapore, South Korea and Taiwan. Direct link to Stephen White's post They were very similar. [114], Large parts of the world devastated by World War II did not benefit from the Marshall Plan. President Harry Truman signed the Marshall Plan on April 3, 1948, and aid was distributed to 16 European nations, including Britain, France, Belgium, the Netherlands, West Germany and Norway. The Marshall Plan is typically cast as central to the "liberal internationalist" order constructed by the United States and its allies after 1945. Necessary cookies are absolutely essential for the website to function properly. Hope this helps! The currency reform in 1948 was headed by the military government and helped Germany to restore stability by encouraging production. [46], After six weeks of negotiations, Molotov rejected all of the American and British proposals. The Benelux countries (Belgium, Netherlands, and Luxembourg), despite also suffering under the Nazis, had long been closely linked to the German economy and felt their prosperity depended on its revival. Aid was originally offered to almost all the European countries, including those under military occupation by the Soviet Union. IBRD lending had a much more limited scopeit only funded specific, approved projectsand total IBRD lending to these countries during this period amounted to only about $12 billion in 2019 dollars, which pales in comparison to the Marshall Plan. Its recovery is attributed to traditional economic stimuli, such as increases in investment, fueled by a high savings rate and low taxes. [2], Spain was not present at the conference. In addition, the regions transportation infrastructurerailways, electric utilities, port facilities, roads, bridges and airportshad suffered extensive damage during airstrikes and artillery attacks, and the shipping fleets of many countries had been sunk. When World War II ended in 1945, Europe lay in ruins . However, in January 1949, the American government suspended this aid in response to the Dutch efforts to restore colonial rule in Indonesia during the Indonesian National Revolution, and it implicitly threatened to suspend Marshall aid to the Netherlands if the Dutch government continued to oppose the independence of Indonesia. At least five national laws of expulsion were implemented, in varying degrees, and often counterpart laws were enforced in the states. While the Plan refers to the official number of poor in the country as 33,600 households or 122,700 individuals, the Government is initially focusing on the absolute poor, about 10,000 households .