The Marshall Plan
The Marshall Plan, officially known as the European Recovery Program, was an ambitious American initiative to help rebuild Western European democracies after the end of World War 2.
The plan was named for Secretary of State George Marshall, who introduced it. He was appointed by President Harry Truman and they wanted a plan that would restore economic and political stability in Europe.
Marshall stated that the plan was “not against any country or doctrine, but against hunger, poverty, desperation, and chaos.”
However, the hope was that the aid would make Europe less susceptible to the Soviet Union’s communist influences.
Many of the industrial and cultural centers of Western European countries had been destroyed in World War 2. Some regions were on the brink of famine, crucial infrastructure had been destroyed, millions were killed in the war, and millions more were left in refugee camps.
Beginning in 1948, the US distributed more than $13 billion in economic aid to 16 European countries, including Great Britain, France, Germany, Italy, and Belgium.
Countries who had fought alongside the Allies during the war received more assistance than those who fought with the Axis powers or remained neutral. The US offered help to the Soviet Union, but it declined, and no aid was given to any of the Eastern European countries under its influence.
The US did not give money directly to European governments. However, it did offer many types of assistance, including American-made goods, grants to purchase US goods and services, loans, and resources for increasing productivity.
In addition to the proactive assistance, the plan also required European countries themselves to invest in their long-term recovery.
As a result of the plan, there was a reliable market for US goods (including food and industrial equipment) transported on US vessels, which benefited both the US and European economies. It also encouraged economic integration and led to greater cooperation amongst the European countries.
By 1952, the countries that had received aid under the Marshall Plan experienced significant economic growth in both agricultural and industrial production beyond pre-war levels.
Although it was initially unpopular in the US and met with skepticism in Europe, the Marshall Plan is regarded as an incredibly successful foreign policy initiative.
The plan not only provided economic relief during a time of need and opened up trade between Europe and the US, but also unified Europe commercially and politically. Perhaps most important, it also made communism and the Soviet Union much less appealing.