The Marshall Plan was designed to help and rebuild the economies of Western Europe affected by World War II. Who benefited from the program?
After World War II, much of Europe was destroyed. The constant bombardment practically destroyed most of the industrial enterprises. Major cities such as Berlin and Warsaw lay in ruins. The transport infrastructure of most countries was badly damaged: during the war, railways, bridges and important transport junctions were destroyed. In some countries, the destruction of transport infrastructure has left many remote settlements virtually isolated. The countries exhausted by the war did not have the means to rebuild themselves. And then the United States entered the scene. It must be admitted that, unlike European countries, America suffered less losses in infrastructure and industry. The States offered their financial assistance to weakened countries to restore their economies.
13 billion by 16
On June 5, 1947, US Secretary of State George Marshall, speaking at Harvard University, presented his plan to help Europe. France and Great Britain supported him. At the Paris meeting of foreign ministers, the USA, France, Great Britain and the USSR discussed the possibility of creating a steering committee that would assess the amount of necessary material assistance for each of the countries and distribute it, and determine the development of the main industries. The USSR agreed to accept American aid, but was categorically opposed to any control over its distribution and use. As a result, the Soviet Union refused to participate in the American program and banned such cooperation for the countries of the socialist camp, despite the fact that Poland and Czechoslovakia had given their preliminary consent.
US President Harry Truman signs the Economic Cooperation Act.
On July 12, 1947, representatives of 16 states arrived in Paris to discuss the plan for the restoration of Europe and became participants in the implementation of the "Marshall Plan": Great Britain, France, Italy, Belgium, the Netherlands, Luxembourg, Sweden, Norway, Denmark, Ireland, Iceland, Portugal, Austria, Switzerland, Greece and Turkey. West Germany joined them in December 1949.
The countries of the socialist camp did not accept US assistance under pressure from the USSR
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The plan was developed for 4 years and began to be implemented after the adoption in the United States of the Law on Economic Cooperation of April 4, 1948. The total amount of appropriations under the Marshall Plan was about $ 13 billion, which in 2015 prices amounted to almost $ 150 billion. The main share was received by England (2.8 billion), France (2.5 billion), Italy (1.3 billion), West Germany (1.3 billion) and Holland (1 billion). Moreover, Germany was provided with financial assistance and at the same time it was charged an indemnity for the damage caused to the victorious countries in World War II.
By helping others, you are helping yourself
The United States provided financial assistance from its budget in the form of grants and loans. However, the US government was still not altruistic, and this plan contained very favorable trade, economic and political conditions for America. Former Vice President Henry Wallace described it as a tool of the Cold War against the USSR, especially given that the Marshall Plan was closely tied to the Truman Doctrine.
The "Marshall Plan" was carried out in close connection with the "Truman Doctrine"
Marshall feared that the war-torn states could turn to the countries of the socialist camp for help, so his program contained measures to counter the expansion of the USSR's sphere of influence. All of the signatory countries to the US plan pledged to remove the Communists from their governments prior to the program. By 1948, there were no communists in any Western European government.
First page of the Marshall Plan.
The plan contained a program to modernize the infrastructure of Western European countries, a more even geographical distribution of heavy industry, an increase in production in metallurgy and energy, the rationalization of agriculture and light industry, as well as measures for monetary and financial stabilization.
In addition, the developing industry in the United States was looking for new sales markets, which was facilitated by this plan. The participants in the plan pledged to encourage private American investment, supply scarce goods to the United States, and reduce customs tariffs for goods from America. Also, states were supposed to create special funds in national currency, which was released as a result of receiving money from the United States, but control over spending remained in the hands of the Americans. For this, the Economic Cooperation Administration was created, headed by major American financiers and politicians.
Soviet caricature in the satirical magazine Krokodil.
As for the import of American products to Europe, the countries, of course, could express their wishes, but the final decision on export-import was made by the United States. In addition, various political reservations in the plan did not facilitate free trade. For example, France had to buy American coal at $ 20 per tonne to its detriment, instead of Polish coal at $ 12 per tonne. Also, one of the conditions of the plan was that 20% of the amount of aid was repaid through exports, which provided the United States with strategic raw materials.
20% of US aid was paid off through exports
On December 30, 1951, the Marshall Plan formally ended and was replaced by the Mutual Security Act, which provided for the simultaneous provision of military and economic assistance.
What's the bottom line?
Despite the fact that the "Marshall Plan" exacerbated Western Europe's dependence on the United States both politically and economically, its main goals were nevertheless achieved. The economies of European countries recovered much faster than expected, many industries were restructured, enterprises were revived. As a result of the implementation of the assistance program, the participating countries were able to pay off their external debts. The European middle class was restored thanks to the development of trade and industry. In addition, it was possible to weaken the influence of the USSR and the communists in Western Europe.
Nadezhda Chekasina
