Map of Cold-War era Europe and the Near East showing countries that received Marshall Plan aid. The red columns show the relative amount of total aid per nation.

The Marshall Plan (from its enactment, officially the European Recovery Program, ERP) was the primary plan of the United States for rebuilding and creating a stronger foundation for the allied countries of Europe, and repelling communism after World War II. The United States of America —commonly referred to as the Communism is a Socioeconomic structure that promotes the establishment of an egalitarian, classless, stateless Society based World War II, or the Second World War, (often abbreviated WWII) was a global military conflict which involved a majority of the world's nations, including The initiative was named for Secretary of State George Marshall and was largely the creation of State Department officials, especially William L. Clayton and George F. Kennan. The United States Secretary of State (commonly abbreviated as SecState) is the head of the United States Department of State, concerned with Foreign affairs George Catlett Marshall Jr (December 31 1880 &ndash October 16 1959 was an American military leader Chief of Staff of the Army, Secretary of William Lockhart Clayton ( February 7, 1880 – February 8, 1966) was an American business leader and government official George Frost Kennan (February 16 1904 &ndash March 17 2005 was an American Advisor, Diplomat, Political scientist, and Historian, best

The reconstruction plan developed at a meeting of the participating European states was established on July 12, 1947. Events 1191 - Saladin 's garrison surrenders ending the two-year Siege of Acre. Year 1947 ( MCMXLVII) was a Common year starting on Wednesday (link will display full 1947 calendar of the Gregorian calendar. The Marshall Plan offered the same aid to the USSR and its allies, but they did not accept it, fearing that capitalistic governments might "ask" them to change to capitalism. The Union of Soviet Socialist Republics (USSR was a constitutionally Socialist state that existed in Eurasia from 1922 to 1991 The plan was in operation for four years beginning in July 1947. During that period some USD 13 billion in economic and technical assistance were given to help the recovery of the European countries that had joined in the Organization for European Economic Co-operation. The United States dollar ( sign: $; code: USD) is the unit of Currency of the United States; it has also been ^[1]

By the time the plan had come to completion, the economy of every participant state, with the exception of Germany, had grown well past pre-war levels. An economic system is a System that involves the production, distribution and consumption of goods and services between Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. Over the next two decades, many regions of Western Europe would enjoy unprecedented growth and prosperity. Western Europe at its most general meaning means 'all the countries in the West of Europe ' The Marshall Plan has also long been seen as one of the first elements of European integration, as it erased tariff trade barriers and set up institutions to coordinate the economy on a continental level. European integration is the process of political legal economic (and in some cases social and cultural integration of European states including some states that are partly in Europe For other uses of this word see Tariff (disambiguation. A tariff is a tax imposed on goods when they are moved across a political boundary A trade barrier is a general term that describes any government policy or regulation that restricts International trade. An intended consequence was the systematic adoption of American managerial techniques.

In recent years historians have questioned both the underlying motivation and the overall effectiveness of the Marshall Plan. Some historians contend that the benefits of the Marshall Plan actually resulted from new laissez-faire policies that allowed markets to stabilize through economic growth. Laissez-faire ( pronunciation: French,; English,) is a French phrase literally meaning Let do (“allow to do” ^[2] It is now acknowledged that the United Nations Relief and Rehabilitation Administration, which helped millions of refugees from 1944 to 1947, also laid the foundation for European postwar recovery. The United Nations ( UN) is an International organization whose stated aims are to facilitate cooperation in International law, International security The United Nations Relief and Rehabilitation Administration (UNRRA was proposed to the United States Congress by president Franklin Delano Roosevelt on June

Rejection by the Soviets

British Foreign Secretary Ernest Bevin heard Marshall's radio broadcast speech and immediately contacted French Foreign Minister Georges Bidault to begin preparing a quick European response to (and acceptance of) the offer. Ernest Bevin ( 9 March 1881 - 14 April 1951) was a British labour leader politician and statesman best known for his time as Georges-Augustin Bidault (5 October 1899 27 January 1983 was a French politician The two agreed that it would be necessary to invite the Soviets as the other major allied power. Marshall's speech had explicitly included an invitation to the Soviets, feeling that excluding them would have been too clear a sign of distrust. State Department officials, however, knew that Stalin would almost certainly not participate, and that any plan that would send large amounts of aid to the Soviets was unlikely to be approved by Congress.

Stalin was at first interested in the plan. He felt that the Soviet Union stood in a good position after the war and would be able to dictate the terms of the aid. He thus dispatched foreign minister Vyacheslav Molotov to Paris to meet with Bevin and Bidault. Molotov redirects here For other uses see Molotov (disambiguation. ^[3] The British and French leadership shared the American lack of genuine interest in Soviet participation, and they presented Molotov with conditions that the Soviets could never accept. The most important condition was that every country to join the plan would need to have its economic situation independently assessed, scrutiny to which the Soviets could not agree. Bevin and Bidault also insisted that any aid be accompanied by the creation of a unified European economy, something incompatible with the strict Soviet command economy. Molotov left Paris, rejecting the plan.

On July 12, a larger meeting was convened in Paris. Events 1191 - Saladin 's garrison surrenders ending the two-year Siege of Acre. Every country of Europe was invited, with the exceptions of Spain (which had stayed out of World War II but had sympathized with the Axis powers) and the small states of Andorra, San Marino, Monaco, and Liechtenstein. Spain () or the Kingdom of Spain (Reino de España is a country located mostly in southwestern Europe on the Iberian Peninsula. The Axis powers also known as the Axis alliance Axis nations Axis countries or sometimes just the Axis were those Countries Andorra, officially the Principality of Andorra ( Catalan: Principat d'Andorra) is a small Landlocked country in western The Most Serene Republic of San Marino (Serenissima Repubblica di San Marino is a country in the Apennine Mountains. For other uses see Monaco (disambiguation Monaco, officially the Principality of Monaco ( French: Principauté de Monaco; Monégasque The Principality of Liechtenstein (Fürstentum Liechtenstein) is a tiny doubly landlocked Alpine country in Western Europe, bordered by Switzerland The Soviet Union was invited with the understanding that it would refuse. The states of the future Eastern Bloc were also approached, and Czechoslovakia and Poland agreed to attend. During the Cold War, the term Communist Bloc (or Soviet Bloc) was used to refer to the Soviet Union and countries it either controlled or that were Czechoslovakia may also refer to what is now the Czech Republic and Slovakia. Poland (Polska officially the Republic of Poland In one of the clearest signs of Soviet control over the region, the Czechoslovakian foreign minister, Jan Masaryk, was summoned to Moscow and berated by Stalin for thinking of joining the Marshall Plan. Jan Garrigue Masaryk ( September 14, 1886 &ndash March 10, 1948) was a Czechoslovak Diplomat and Politician Polish Prime minister Josef Cyrankiewicz was rewarded by Stalin for the Polish rejection of the Plan. Józef Cyrankiewicz ( April 23, 1911 – January 20, 1989) was a Polish Socialist, after 1948 Communist Russia rewarded Poland with a huge 5 year trade agreement, 450 million in credit, 200,000 tons of grain, heavy machinery and factories. [3] Stalin saw the Plan as a significant threat to Soviet control of Eastern Europe and believed that economic integration with the West would allow these countries to escape Soviet guidance. The Americans shared this view and hoped that economic aid could counter the growing Soviet influence. They were not too surprised, therefore, when the Czechoslovakian and Polish delegations were prevented from attending the Paris meeting. The other Eastern European states immediately rejected the offer. ^[4] Finland also declined in order to avoid antagonizing the Soviets. Finland, officially the Republic of Finland ( is a Nordic country situated in the Fennoscandian region of northern Europe. The Soviet Union's "alternative" to the Marshall plan, which was purported to involve Soviet subsidies and trade with western Europe, became known as the Molotov Plan, and later, the COMECON. The Molotov Plan was the system created by the Soviet Union in 1947 in order to provide aid to rebuild the countries in Eastern Europe that were politically and economically aligned to

The Soviet representative to the United Nations said that the Marshall Plan violated the principles of the United Nations. He accused the United States of attempting to impose its will on other independent states, while at the same time using economic resources distributed as relief to needy nations as an instrument of political pressure. The United States was said to have attempted to split Europe into two camps to complete the formation of a bloc of several European countries hostile toward the Soviet Union and the countries of Eastern Europe. [4]

Negotiations

Turning the plan into reality required negotiations both among the participating nations, and also to get the plan through the United States Congress. The United States Congress is the bicameral Legislature of the federal government of the United States of America, consisting of two houses Thus sixteen nations met in Paris to determine what form the American aid would take, and how it would be divided. The negotiations were long and complex, with each nation having its own interests. France's major concern was that Germany not be rebuilt to its previous threatening power. The Benelux countries, despite also suffering under the Nazis, had long been closely linked to the German economy and felt their prosperity depended on its revival. The Benelux is an economic union in Western Europe that includes three neighboring monarchies, '''Be'''lgium, the '''Ne'''therlands, and The Scandinavian nations, especially Sweden, insisted that their long-standing trading relationships with the Eastern Bloc nations not be disrupted and that their neutrality not be infringed. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. Britain insisted on special status, concerned that if it were treated equally with the devastated continental powers it would receive virtually no aid. The Americans were pushing the importance of free trade and European unity to form a bulwark against communism. The Truman administration, represented by William Clayton, promised the Europeans that they would be free to structure the plan themselves, but the administration also reminded the Europeans that for the plan to be implemented, it would have to pass Congress. The majority of Congress was committed to free trade and European integration, and also were hesitant to spend too much of the money on Germany. ^[5]

Agreement was eventually reached and the Europeans sent a reconstruction plan to Washington. In this document the Europeans asked for $22 billion in aid. Truman cut this to $17 billion in the bill he put to Congress. The plan met sharp opposition in Congress, mostly from the portion of the Republican Party that advocated a more isolationist policy and was weary of massive government spending. Isolationism is a Foreign policy which combines a non-interventionist military policy and a political policy of Economic nationalism ( Protectionism This group's most prominent representative was Robert A. Taft. Robert Alphonso Taft ( September 8, 1889 - July 31, 1953) of the Taft political family of Ohio, was a Republican The plan also had opponents on the left, with Henry A. Wallace a strong opponent. Henry Agard Wallace (October 7 1888 &ndash November 18 1965 was the thirty-third Vice President of the United States (1941&ndash45 the eleventh Secretary of Wallace saw the plan as a subsidy for American exporters and sure to polarize the world between East and West. ^[6] This opposition was greatly reduced by the shock of the overthrow of the democratic government of Czechoslovakia in February 1948. Czechoslovakia may also refer to what is now the Czech Republic and Slovakia. Soon after a bill granting an initial $5 billion passed Congress with strong bipartisan support. The Congress would eventually donate $12. 4 billion in aid over the four years of the plan. ^[7]

Truman signed the Marshall Plan into law on April 3, 1948, establishing the Economic Cooperation Administration (ECA) to administer the program. Events 1043 - Edward the Confessor is crowned King of England. Year 1948 ( MCMXLVIII) was a Leap year starting on Thursday (link will display the 1948 calendar of the Gregorian calendar. The Economic Cooperation Administration (ECA was a United States government agency set up in 1948 to administer the Marshall Plan. ECA was headed by economic cooperation administrator Paul G. Hoffman. In the same year, the participating countries (Austria, Belgium, Denmark, France, West Germany, Great Britain, Greece, Iceland, Ireland, Italy, Luxembourg, the Netherlands, Norway, Sweden, Switzerland, Turkey, and the United States) signed an accord establishing a master financial-aid-coordinating agency, the Organization for European Economic Cooperation (later called the Organization for Economic Cooperation and Development, OECD), which was headed by Frenchman Robert Marjolin. Robert Marjolin ( 27 July 1911 - 15 April 1986) was a French economist and politician involved in the formation of the European

Implementation

The first substantial aid went to Greece and Turkey in January 1947, which were seen as being on the front lines of the battle against communist expansion and were already being aided under the Truman Doctrine. Greece (Ελλάδα transliterated: Elláda, historically, Ellás,) officially the Hellenic Republic (Ελληνική Δημοκρατία Turkey (Türkiye known officially as the Republic of Turkey ( is a Eurasian Country that stretches The Truman Doctrine was a proclamation by US President Harry S Initially the UK had supported the anti-communist factions in those countries, but due to its dire economic condition it requested the U. S. to continue its efforts. The ECA formally began operation in July 1948.

First page of the Marshall Plan

The official mission statement of ECA was to give a boost to the European economy: to promote European production, to bolster European currency, and to facilitate international trade, especially with the United States, whose economic interest required Europe to become wealthy enough to import U. A mission statement is a brief statement of the purpose of a Company, Organization, or Group. S. goods. Another unofficial goal of ECA (and of the Marshall Plan) was the containment of growing Soviet influence in Europe, evident especially in the growing strength of communist parties in Czechoslovakia, France, and Italy. A Political party described as a communist party includes those that advocate the application of the social principles of Communism through a communist form of

The Marshall Plan money was transferred to the governments of the European nations. The funds were jointly administered by the local governments and the ECA. Each European capital had an ECA envoy, generally a prominent American businessman, who would advise on the process. 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.

The Marshall Plan aid was mostly used for the purchase of goods from the United States. The European nations had all but exhausted their foreign exchange reserves during the war, and the Marshall Plan aid represented almost their sole means of importing goods from abroad. Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign Currency deposits held by Central banks and monetary At the start of the plan these imports were mainly much-needed staples such as food and fuel, but later the purchases turned towards reconstruction needs as was originally intended. In the latter years, under pressure from the United States Congress and with the outbreak of the Korean War, an increasing amount of the aid was spent on rebuilding the militaries of Western Europe. The Korean War refers to a period of military conflict between North Korean and South Korean regimes with major hostilities lasting from June 25 1950 until the 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. ^[8]

Also established were counterpart funds, which used Marshall Plan aid to establish funds in the local currency. A counterpart fund is a technique for turning Foreign aid into reserves of domestic currency According to ECA rules 60% of these funds had to be invested in industry. This was prominent in Germany, where these government-administered funds played a crucial role lending money to private enterprises which would spend the money rebuilding. These funds played a central role in the reindustrialization of Germany. In 1949 – 50, for instance, 40% of the investment in the German coal industry was by these funds. ^[9] The companies were obligated to repay the loans to the government, and the money would then be lent out to another group of businesses. This process has continued to this day in the guise of the state owned KfW bank. KfW is a German government-owned development bank based in Frankfurt. The Special Fund, then supervised by the Federal Economics Ministry, was worth over DM 10 billion in 1971. In 1997 it was worth DM 23 billion. Through the revolving loan system, the Fund had by the end of 1995 made low-interest loans to German citizens amounting to around DM 140 billion. The other 40% of the counterpart funds were used to pay down the debt, stabilize the currency, or invest in non-industrial projects. France made the most extensive use of counterpart funds, using them to reduce the budget deficit. In France, and most other countries, the counterpart fund money was absorbed into general government revenues, and not recycled as in Germany.

A far less expensive, but also quite effective, ECA initiative was the Technical Assistance Program. This program funded groups of European engineers and industrialists to visit the United States and tour mines, factories, and smelters so that they could then copy the American advances at home. At the same time several hundred American technical advisors were sent to Europe.

Expenditures

The Marshall Plan aid was divided amongst the participant states on a roughly per capita basis. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for general European revival. Somewhat more aid per capita was also directed towards the Allied nations, with less for those that had been part of the Axis or remained neutral. The Allies of World War II were the countries officially opposed to the Axis powers during the Second World War. The Axis powers also known as the Axis alliance Axis nations Axis countries or sometimes just the Axis were those Countries The table below shows Marshall Plan aid by country and year (in millions of dollars) from The Marshall Plan Fifty Years Later. There is no clear consensus on exact amounts, as different scholars differ on exactly what elements of American aid during this period was part of the Marshall Plan.

Labeling used on aid packages

Country	1948/49 ($ millions)	1949/50 ($ millions)	1950/51 ($ millions)	Cumulative ($ millions)
Austria	232	166	70	468
Belgium and  Luxembourg	195	222	360	777
Denmark	103	87	195	385
France	1085	691	520	2296
West Germany	510	438	500	1448
Greece	175	156	45	366
Iceland	6	22	15	43
Ireland	88	45	0	133
Italy and  Trieste	594	405	205	1204
Netherlands	471	302	355	1128
Norway	82	90	200	372
Portugal	0	0	70	70
Sweden	39	48	260	347
Switzerland	0	0	250	250
Turkey	28	59	50	137
United Kingdom	1316	921	1060	3297
Totals	4,924	3,652	4,155	12,721

Effects

One of a number of posters created to promote the Marshall Plan in Europe. Austria (Österreich ( officially the Republic of Austria (Republik Österreich The Kingdom of Belgium is a Country in northwest Europe. It is a founding member of the European Union and hosts its headquarters as well as those Luxembourg (Groussherzogtum Lëtzebuerg Grand-Duché de Luxembourg Großherzogtum Luxemburg is a small Landlocked country in Western Europe, bordered by The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe This article is about the country For a topic outline on this subject see List of basic France topics. West Germany ( Inf German: Westdeutschland or West-Deutschland) was the common English name for the Federal Republic of Germany ( Greece (Ελλάδα transliterated: Elláda, historically, Ellás,) officially the Hellenic Republic (Ελληνική Δημοκρατία Iceland, officially the Republic of Iceland ( ( Ísland or Lýðveldið Ísland ( Ireland ( Irish: Éire, ˈeːrʲə is a country in north-western Europe. Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest The Free Territory of Trieste or Free State of Trieste ( Italian Territorio libero di Trieste, Slovenian Svobodno tržaško ozemlje The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional Portugal, officially the Portuguese Republic (República Portuguesa is a country on the Iberian Peninsula. "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. Switzerland (English pronunciation; Schweiz Swiss German: Schwyz or Schwiiz Suisse Svizzera Svizra officially the Swiss Confederation Turkey (Türkiye known officially as the Republic of Turkey ( is a Eurasian Country that stretches The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located The blue and white flag between those of Germany and Italy is a version of the Trieste flag. The Free Territory of Trieste or Free State of Trieste ( Italian Territorio libero di Trieste, Slovenian Svobodno tržaško ozemlje

The Marshall Plan ended in 1953, as originally scheduled. Any effort to extend it was halted by the growing cost of the Korean War and rearmament. The Korean War refers to a period of military conflict between North Korean and South Korean regimes with major hostilities lasting from June 25 1950 until the U. S. Republicans hostile to the plan had also gained seats in the 1950 Congressional elections, and conservative opposition to the plan was revived. The US House election 1950 was an election for the United States House of Representatives in 1950 which occurred in the middle of President Harry Truman Thus the plan ended in 1951, though various other forms of American aid to Europe continued afterwards.

The years 1948 to 1952 saw the fastest period of growth in European history. Industrial production increased by 35%. Agricultural production substantially surpassed pre-war levels. ^[10] The poverty and starvation of the immediate postwar years disappeared, and Western Europe embarked upon an unprecedented two decades of growth that saw standards of living increase dramatically. There is some debate among historians over how much this should be credited to the Marshall Plan. Most reject the idea that it alone miraculously revived Europe, as evidence shows that a general recovery was already underway. Most believe that the Marshall Plan sped this recovery, but did not initiate it.

The political effects of the Marshall Plan may have been just as important as the economic ones. Marshall Plan aid allowed the nations of Western Europe to relax austerity measures and rationing, reducing discontent and bringing political stability. The communist influence on Western Europe was greatly reduced, and throughout the region communist parties faded in popularity in the years after the Marshall Plan. The trade relations fostered by the Marshall Plan helped forge the North Atlantic alliance that would persist throughout the Cold War. At the same time the nonparticipation of the states of Eastern Europe was one of the first clear signs that the continent was now divided.

The Marshall Plan also played an important role in European integration. Both the Americans and many of the European leaders felt that European integration was necessary to secure the peace and prosperity of Europe, and thus used Marshall Plan guidelines to foster integration. In some ways this effort failed, as the OEEC never grew to be more than an agent of economic cooperation. Rather it was the separate European Coal and Steel Community, which notably excluded Britain, that would eventually grow into the European Union. The European Coal and Steel Community ( ECSC) was a six-nation International organisation serving to unify Western Europe during the Cold War and creating The European Union ( EU) is a political and economic union of twenty-seven member states, located primarily in However, the OEEC served as both a testing and training ground for the structures and bureaucrats that would later be used by the European Economic Community. The European Community (EC is one of the Three pillars of the European Union (EU created under the Maastricht Treaty (1992 The Marshall Plan, linked into the Bretton Woods system, also mandated free trade throughout the region. The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states

While some modern historians today feel some of the praise for the Marshall Plan is exaggerated, it is still viewed favorably and many thus feel that a similar project would help other areas of the world. After the fall of communism several proposed a "Marshall Plan for Eastern Europe" that would help revive that region. Others have proposed a Marshall Plan for Africa to help that continent, and U. S. vice president Al Gore suggested a Global Marshall Plan. Albert Arnold Gore Jr (born March 31 1948 is an American environmental Activist, author Businessperson, former Politician, and former The Global Marshall Plan is a plan first devised by Former American Vice-President Al Gore in his bestselling book Earth in the Balance ^[11] "Marshall Plan" has become a metaphor for any very large scale government program that is designed to solve a specific social problem. It is usually used when calling for federal spending to correct a perceived failure of the private sector. ^[12]

The West German economic recovery was partly due to the economic aid provided by the Marshall Plan, but mainly it was due to the currency reform of 1948 which replaced the Reichsmark with the Deutsche Mark as legal tender, halting rampant inflation. Monetary Reform describes any movement or theory that proposes a different system of supplying Money and financing the economy than the current system For a detailed discussion of the English translation of Reich, see Reich. This act to strengthen the German economy had been explicitly forbidden during the two years that the occupation directive JCS 1067 was in effect. The Morgenthau Plan was a plan for the occupation of Germany after World War II that advocated measures intended to remove Germany's ability to wage war The Allied dismantling of the West German coal and steel industry finally ended in 1951 (The industrial plans for Germany). The Level of Industry plans for Germany were the effected Allied plans to lower and control German industrial potential after World War II. The Marshall Plan was only one of several forces behind the German recovery. ^[13][14] Even so, in Germany the myth of the Marshall Plan is still alive. According to Marshall Plan 1947–1997 A German View by Susan Stern, many Germans still believe that Germany was the exclusive beneficiary of the plan, that it consisted of a free gift of vast sums of money, and that it was solely responsible for the German economic recovery in the 1950s. ^[15]

Repayment

The Organization for European Economic Cooperation took the leading role in allocating funds, and the ECA arranged for the transfer of the goods. The American supplier was paid in dollars, which were credited against the appropriate European Recovery Program funds. The European recipient, however, was not given the goods as a gift, but had to pay for them (though not necessarily at once, on credit etc. ) in local currency, which was then deposited by the government in a counterpart fund. This money, in turn, could be used by the ERP countries for further investment projects.

Most of the participating ERP governments were aware from the beginning that they would never have to return the counterpart fund money to the U. S. ; it was eventually absorbed into their national budgets and "disappeared. " Originally the total American aid to Germany (in contrast to grants given to other countries in Europe) had to be repaid. But under the London debts agreement of 1953, the repayable amount was reduced to about $1 billion. Aid granted after 1 July 1951 amounted to around $270 million, of which Germany had to repay $16. "July 1st" redirects here For the Ayumi Hamasaki song see H (song. Year 1951 ( MCMLI) was a Common year starting on Monday. Events of 1951 January 9 million to the Washington Export-Import Bank. The Export-Import Bank of the United States ( Ex-Im Bank) is the official Export credit agency of the United States federal government. In reality, Germany did not know until 1953 exactly how much money it would have to pay back to the U. S. , and insisted that money was given out only in the form of interest-bearing loans — a revolving system ensuring the funds would grow rather than shrink. A lending bank was charged with overseeing the program. European Recovery Program loans were mostly used to support small- and medium-sized businesses. Germany paid the U. S. back in installments (the last check was handed over in June 1971). However, the money was not paid from the ERP fund, but from the central government budget.

Areas without the Marshall Plan

Large parts of the world devastated by World War II did not benefit from the Marshall Plan. The only major Western European nation excluded was Francisco Franco's Spain. Francisco Paulino Hermenegildo Teódulo Franco y Bahamonde (born December 4, 1892 in Ferrol, died November 20, 1975 in Madrid The Spanish State ( Estado Español) was the formal name given to Spain from 1939 to 1978 by the régime of Francisco Franco After the war, it pursued a policy of self-sufficiency, currency controls, and quotas, with little success. With the escalation of the Cold War, the United States reconsidered its position, and in 1951 embraced Spain as an ally, encouraged by Franco's aggressive anti-communist policies. Francisco Paulino Hermenegildo Teódulo Franco y Bahamonde (born December 4, 1892 in Ferrol, died November 20, 1975 in Madrid Anti-communism refers to opposition to Communism. Historically the word "communism" has been used to refer to several types of communal social organization and 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. ^[16]

While the western portion of the Soviet Union had been as badly affected as any part of the world by the war, the eastern portion of the country was largely untouched and had seen a rapid industrialization during the war. The Soviets also imposed large reparations payments on the Axis allies that were in its sphere of influence. War reparations refer to the monetary compensation intended to cover damage or injury during a war Finland, Hungary, Romania, and especially East Germany were forced to pay vast sums and ship large amounts of supplies to the USSR. Finland, officially the Republic of Finland ( is a Nordic country situated in the Fennoscandian region of northern Europe. Hungary (Magyarország 'mɔɟɔrorsaːg) officially in English the Republic of Hungary ( Magyar Köztársaság, literally Magyar (Hungarian Republic Romania ( dated: Rumania, Roumania The German Democratic Republic ( GDR; Deutsche Demokratische Republik DDR; commonly known in English as East Germany) was a Socialist state These reparation payments meant that the Soviet Union received almost as much as any of the countries receiving Marshall Plan aid.

It should be noted for the historical point of view that Finland is the only country so far (2008) which has paid all the reparation payments.

Eastern Europe saw no Marshall Plan money, as their governments rejected joining the program, and moreover received little help from the Soviets. The Soviets did establish COMECON as a rebuttal to the Marshall Plan. The members of Comecon looked to the Soviet Union for oil; in turn, they provided machinery, equipment, agricultural goods, industrial goods, and consumer goods to the Soviet Union. Some claim economic recovery in the east was much slower than in the west, and some feel the economies never fully recovered in the communist period, resulting in the formation of the shortage economies and a gap in wealth between East and West. Shortage economy (Polish gospodarka niedoboru, Hungarian hiánygazdaság) is a term coined by the Hungarian Economist, János Kornai However, the Soviet economy returned to pre-war levels in 1949 -- at the same time as West Germany. [5] Finland, which did not join the Marshall Plan and which was required to give large reparations to the USSR, saw its economy recover to pre-war levels in 1947. [6] France, which received billions of dollars through the Marshall Plan, similarly saw its economy return to pre-war levels in 1947. [7] By mid-1948 industrial production in Poland, Hungary, Bulgaria, and Czechoslovakia had recovered to a level somewhat above pre-war level. [8]

Japan too, had been badly damaged by the war. For a topic outline on this subject see List of basic Japan topics. However, the American people and Congress were far less sympathetic towards the Japanese than they were to the Europeans. Japan was also not considered to have as great a strategic or economic importance to the United States. Thus no grand reconstruction plan was ever created, and the Japanese economic recovery before 1950 was slow. However, by 1952 growth had picked up, such that Japan continued, from 1952 to 1971 to grow in real GNP at an average annual rate of 9. 6 percent. The US by contrast, grew at a rate of 2. 9 percent from 1952 to 1991. [9] The Korean War may have played a role in the early economic growth in Japan. The Korean War refers to a period of military conflict between North Korean and South Korean regimes with major hostilities lasting from June 25 1950 until the It began in 1950 and Japan became the main staging ground for the United Nations war effort, and a crucial supplier of materiel. One well known example is that of the Toyota company. (pronounced) is a Multinational corporation headquartered in Japan, and is currently the world's largest Automaker. In June 1950, the company produced 300 trucks, and was on the verge of going out of business. The first months of the war saw the military order over 5,000 vehicles, and the company was revived. ^[17] During the four years of the Korean War, the Japanese economy saw a substantially larger infusion of cash than had any of the Marshall Plan nations.

Canada, like the United States, was little damaged by the war and in 1945 was one of the world's largest economies. Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page The Canadian economy had long been more dependent than the American one on trade with Europe, and after the war there were signs that the Canadian economy was struggling. In April 1948, the U.S. Congress passed the provision in the plan that allowed the aid to be used in purchasing goods from Canada. The United States Congress is the bicameral Legislature of the federal government of the United States of America, consisting of two houses The new provision ensured the health of that nation's economy as Canada made over a billion dollars in the first two years of operation. ^[18] This contrasted heavily with the treatment Argentina, another major economy dependent on its agricultural exports with Europe, received from the ECA, as the country was deliberately excluded from participation in the Plan due to political differences between the U. For a topic outline on this subject see List of basic Argentina topics. S. and then-president Perón. Juan Domingo Perón (October 8 1895 &ndash July 1 1974 was an Argentine Colonel and Politician, elected three times as President of Argentina This would damage the Argentine agricultural sector and help to precipitate an economic crisis in the country. ^[19]

Criticism

Early criticism

Initial criticism of the Marshall Plan came from a number of liberal economists. Wilhelm Röpke, who influenced German chancellor Ludwig Erhard in his economic recovery program, believed recovery would be found in eliminating central planning and restoring a market economy in Europe, especially in those countries which had adopted more fascist and corporatist economic policies. Wilhelm Röpke ( October 10, 1899 in Schwarmstedt – February 12, 1966 in Geneva) was one of the most important spiritual The Head of government of Germany is called Chancellor (Kanzler "Erhard" redirects here For the saint of this name see Saint Erhard. The term ( German for "economic miracle" describes the rapid reconstruction and development of the economies of West Germany and Austria A planned economy or directed economy is an Economic system in which the Government or Workers' councils manages the Economy. Fascism is a totalitarian nationalist and corporatist ideology Historically corporatism (corporativismo refers to a political or Economic system in which power is held by civic assemblies that represent Economic Röpke criticized the Marshall plan for forestalling the transition to the free market by subsidizing the current, failing systems. ^[20] Erhard put Röpke's theory into practice and would later credit Röpke's influence for the West Germany's preeminent success. ^[21] Henry Hazlitt criticized the Marshall Plan in his 1947 book Will Dollars Save the World?, arguing that economic recovery comes through savings, capital accumulation and private enterprise, and not through large cash subsidies. Henry Hazlitt ( November 28, 1894 – July 8, 1993) was a libertarian Philosopher, Economist, and Journalist Ludwig von Mises also criticized the Marshall Plan in 1951, believing that "The American subsidies make it possible for [Europe's] governments to conceal partially the disastrous effects of the various socialist measures they have adopted. Ludwig Heinrich Edler von Mises (ˈluːtvɪç fɔn ˈmiːzəs ( September 29, 1881 – October 10, 1973) was an Austrian " He also made a general critique of foreign aid, believing it creates ideological enemies rather than economic partners by stifling the free market. ^[22]

Modern criticism

Criticism of the Marshall Plan became prominent among historians of the revisionist school, such as Walter LaFeber, during the 1960s and 1970s. For the denial and distortion of well-established historical facts see Historical revisionism (negationism. Walter LaFeber (born 1933 in Walkerton, Indiana) was a Marie Underhill Noll Professor and a Steven Weisse Presidential Teaching Fellow of History in the They argued that the plan was American economic imperialism, and that it was an attempt to gain control over Western Europe just as the Soviets controlled Eastern Europe. Imperialism has two meanings one describing an action and the other describing an attitude

The economist Tyler Cowen stated that nations receiving the most aid from the Marshall Plan (Britain, Sweden, Greece) saw the least returns and grew the least between 1947 and 1955. Tyler Cowen (pronounced /ˈkaʊˌɛn/) (b January 21, 1962) occupies the Holbert C The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. Greece (Ελλάδα transliterated: Elláda, historically, Ellás,) officially the Hellenic Republic (Ελληνική Δημοκρατία Those nations who received little (Austria, Germany & Italy) grew the most. Austria (Österreich ( officially the Republic of Austria (Republik Österreich Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. Italy (Italia officially the Italian Republic, (Repubblica Italiana is located on the Italian Peninsula in Southern Europe, and on the two largest

In a review of West Germany's economy from 1945 to 1951, German analyst Werner Abelshauser concluded that "foreign aid was not crucial in starting the recovery or in keeping it going. " The economic recoveries of France, Italy, and Belgium, Cowen found, also predated the flow of U. S. aid. Belgium, the country that relied earliest and most heavily on free market economic policies after its liberation in 1944, experienced the fastest recovery and avoided the severe housing and food shortages seen in the rest of continental Europe. [10]

Former U. S. Chairman of the Federal Reserve Bank Alan Greenspan gives most credit to Ludwig Erhard for Europe's economic recovery. Alan Greenspan (born March 6 1926 in New York City) is an American Economist and was from 1987 to 2006 the Chairman of the Federal Reserve of "Erhard" redirects here For the saint of this name see Saint Erhard. Greenspan writes in his memoir The Age of Turbulence that Erhard's economic policies were the most important aspect of postwar Western Europe recovery, far outweighing the contributions of the Marshall Plan. The Age of Turbulence Adventures in a New World (ISBN 1594201315 is the title of the memoir of former Chairman of the Federal Reserve Alan Greenspan The term ( German for "economic miracle" describes the rapid reconstruction and development of the economies of West Germany and Austria He states that it was Erhard's reductions in economic regulations that permitted Germany's miraculous recovery, and that these policies also contributed to the recoveries of many other European countries.

Japan's recovery is also used as a counter-example, since it experienced rapid growth without any aid whatsoever. For a topic outline on this subject see List of basic Japan topics. Its recovery is attributed to traditional economic stimuli, such as increases in investment, fueled by a high savings rate and low taxes. ^[23] Japan saw a large infusion of cash during the Korean war, but because this came in the form of investment and not subsidies, it proved far more beneficial. The Korean War refers to a period of military conflict between North Korean and South Korean regimes with major hostilities lasting from June 25 1950 until the

Criticism of the Marshall Plan also aims at showing that it has begun a legacy of disastrous foreign aid programs. Aid (from the french word aide, also known as international aid, overseas aid, or foreign aid, especially in the United States) is Since the 1990s, economic scholarship has been more hostile to the idea of foreign aid. For example, Alberto Alesina and Beatrice Weder, summing up economic literature on foreign aid and corruption, find that aid is primarily used wastefully and self-servingly by government officials, and ends up increasing governmental corruption. ^[24] This policy of promoting corrupt government is then attributed back to the initial impetus of the Marshall Plan. ^[25]

Noam Chomsky wrote that the amount of American dollars given to France and the Netherlands equaled the funds these countries used to finance their military forces in southeast Asia. Avram Noam Chomsky (noʊm ˈtʃɑmski born December 7 1928 is an American linguist, Philosopher, cognitive scientist, Political This article is about the country For a topic outline on this subject see List of basic France topics. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands The Marshall Plan was said to have "set the stage for large amounts of private U. S. investment in Europe, establishing the basis for modern transnational corporations. Multinational corporation ( MNC) or transnational corporation ( TNC) is a Corporation or enterprise that manages Production or delivers "[11]

The Post War Period coin

Use for colonialism and aggression

The Netherlands used a significant portion of the aid it received to try to re-conquer Indonesia in the Indonesian War of Independence. Euro gold and silver commemorative coins are special Euro coins minted and issued by member states of the Eurozone. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands Timeline of the Indonesian National RevolutionThe Indonesian National Revolution or Indonesian War of Independence was an armed conflict and diplomatic struggle between [12],[13]

The E. R. P. in numismatics

The E. R. P. has left such a legacy behind that has been the main motive of many collectors and bullion coins. One of the most recent is the 20 euro Post War Period coin, minted in September 17, 2003. Euro gold and silver commemorative coins are special Euro coins minted and issued by member states of the Eurozone. Events 1176 - The Battle of Myriokephalon is fought 1462 - The Battle of Świecino (or Battle of Żarnowiec Year 2003 ( MMIII) was a Common year starting on Wednesday of the Gregorian calendar. The reverse side of the coin is based on the design of two famous posters of the era: the “Four in a Jeep” and the E. R. P. The German inscription “Wiederaufbau in Österreich” translates as “Reconstruction in Austria”, one of the countries aided by this program.

See also

• Alliance for Progress failed Central and South American Marshall Plan. The Alliance for Progress initiated by US President John F Kennedy in 1961 aimed to establish economic cooperation between North and South America
• GARIOA (Government and Relief in Occupied Areas) The precursor of the Marshall plan aid. Government and Relief in Occupied Areas (GARIOA was the program under which the U
• Morgenthau plan Post-surrender plan for Germany
• The industrial plans for Germany
• Agreement on German External Debts

References

Bibliography

• Cohen, Lizbeth|Bailey, Thomas A. . "The American Pageant A History of the Republic"
• Arkes, Hadley. Hadley P Arkes is a conservative political scientist and the Edward N Bureaucracy, the Marshall Plan, and the National Interest. Princeton, N. J: Princeton University Press, 1972.
• Agnew, John and J. Nicholas Entrikin, eds. The Marshall Plan Today: Model and Metaphor. Routledge. (2004) online version
• John Bledsoe Bonds; Bipartisan Strategy: Selling the Marshall Plan Praeger, 2002 online version
• Bothwell, Robert. Dr Robert Bothwell (born 17 August 1944) is a professor of Canadian history, and the foremost scholar on Canadian Cold War participation The Big Chill: Canada and the Cold War. Canadian Institute for International Affairs/Institut Canadien des Affaires Internationales Contemporary Affairs Series, No. 1. Toronto: Irwin Publishing Ltd. , 1998.
• Crafts, Nicholas, and Gianni Toniolo, eds. Nicholas F R Crafts (born March 9, 1949, Nottingham, England) is world-renowned Professor of Economics and Economic History at the University Economic Growth in Europe Since 1945. Cambridge University Press, 1996.
• Djelic, Marie-Laure A. ; Exporting the American Model: The Post-War Transformation of European Business. Oxford University Press, 1998 online version
• Chiarella Esposito; America's Feeble Weapon: Funding the Marshall Plan in France and Italy, 1948–1950, Greenwood Press, 1994 online version
• Fossedal, Gregory A. Our Finest Hour: Will Clayton, the Marshall Plan, and the Triumph of Democracy. Gregory Fossedal is a conservative activist He is the self-described chairman of the Alexis de Tocqueville Institution (AdTI Stanford, CA: Hoover Institution Press, 1993.
• Gaddis, John Lewis. John Lewis Gaddis is the Robert A Lovett Professor of Military and Naval History at Yale University. We Now Know: Rethinking Cold War History. New York: Oxford University Press, 1997.
• Grogin, Robert C. Natural Enemies: The United States and the Soviet Union in the Cold War, 1917–1991. Lanham, Md. : Lexington Books, 2001.
• Hogan, Michael J. The Marshall Plan: America, Britain, and the Reconstruction of Western Europe, 1947–1952. Michael J Hogan is an American academic who on September 14 2007 became the 14th president of the University of Connecticut, succeeding Philip Austin who held the Cambridge: Cambridge University Press, 1987.
• Matthias Kipping and Ove Bjarnar; The Americanisation of European Business: The Marshall Plan and the Transfer of Us Management Models Routledge, 1998 online version
• Mee, Charles L. The Marshall Plan: The Launching of the Pax Americana. Charles L Mee is an American Playwright and Author. He was born in Barrington Illinois in 1938 New York: Simon and Schuster, 1984.
• Milward, Alan S. The Reconstruction of Western Europe, 1945–51. London: Methuen, 1984.
• Schain, Martin, ed. The Marshall Plan: Fifty Years After. New York: Palgrave, 2001.
• Stueck, William Whitney, ed. The Korean War in World History. Lexington, Ky. : University Press of Kentucky, 2004.
• Rhiannon Vickers; Manipulating Hegemony: State Power, Labour and the Marshall Plan in Britain Palgrave Publishers, 2000 online edition
• Wallich, Henry Christopher. Henry Christopher Wallich (1914-1988 was an American economist and Central banker. Mainsprings of the German Revival. New Haven: Yale University Press, 1955.
• Wasser, Solidelle F. and Michael L. Dolfman; "BLS and the Marshall Plan: The Forgotten Story: The Statistical Technical Assistance of BLS Increased Productive Efficiency and Labor Productivity in Western European Industry after World War II; Technological Literature Surveys and Plan-Organized Plant Visits Supplemented Instruction in Statistical Measurement," Monthly Labor Review, Vol. 128, 2005
• Wend, Henry Burke; Recovery and Restoration: U. S. Foreign Policy and the Politics of Reconstruction of West Germany's Shipbuilding Industry, 1945–1955. Praeger, 2001 online version

Further reading

• John Gimbel "The origins of the Marshall plan" (Stanford University Press, 1976). (reviewed here)

• Greg Behrman The Most Noble Adventure: The Marshall Plan and the Time When America Helped Save Europe (Free Press, 2007) ISBN 0743282639

External links

• The German Marshall Fund of the United States
• Economist Tyler Cowen questions the conventional wisdom surrounding the Plan
• Truman Presidential Library online collection of original Marshal Plan documents from the year 1946 onwards
• The Marshal Plan documents collection at MCE
• Marshall Plan from the National Archives
• Excerpts from book by Allen W. Dulles
• United States Secretary of State James F. Byrnes famous Stuttgart speech, September 6, 1946 The speech marked the turning point away from the Morgenthau Plan philosophy of economic dismantlement of Germany and towards a policy of economic reconstruction. James Francis Byrnes ( May 2, 1879 April 9, 1972) was an American statesman from the state of South Carolina. The Morgenthau Plan was a plan for the occupation of Germany after World War II that advocated measures intended to remove Germany's ability to wage war
• Marshall Plan Commemorative Section: Lessons of the Plan: Looking Forward to the Next Century
• U.S. Economic Policy Towards defeated countries April, 1946.
• "Pas de Pagaille!", Time magazine July 28, 1947
• "The Marshall Plan as Tragedy," comment on Michael Cox and Caroline Kennedy-Pipe, "The Tragedy of American Diplomacy? Rethinking the Marshall Plan," both published in the Journal of Cold War Studies, vol. Time (trademarked in capitals as TIME) is a weekly American Newsmagazine, similar to Newsweek and Events 1540 - Thomas Cromwell is executed at the order of Henry VIII of England on charges of Treason. Year 1947 ( MCMXLVII) was a Common year starting on Wednesday (link will display full 1947 calendar of the Gregorian calendar. 7, no. 1 (Winter 2005) (text of comment on pdf) (text of original article on pdf)
• Luis García Berlanga's critique of the Marshall Plan in a classic Spanish film: Welcome Mr. Marshall!
• Marshall Plan Still Working, 60 Years Later Cincinnati Enquirer December 10, 2006