[73], The United Kingdom insisted on special status as a longstanding belligerent during the war, concerned that if it were treated equally with the devastated continental powers it would receive virtually no aid. ", "The Marshall Plan: History's Most Successful Structural Adjustment Program", "A Marshall Plan for Greece? [34] Historian Nicholas Balabkins concluded that "as long as German industrial capacity was kept idle the economic recovery of Europe was delayed. To finance the reconstruction of Europe, an American initiative called the Marshall Plan was instituted, and the International Bank for Reconstruction and Development (IBRD)now known as the World Bankwas created. The consent submitted will only be used for data processing originating from this website. Cominform and Comecon | Facts, Summary, Creation & Establishment The opposition argued that it made no sense to oppose communism by supporting the socialist governments in Western Europe; and that American goods would reach Russia and increase its war potential. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for the general European revival. [133], The Marshall Plan has been recently reinterpreted as a public policy approach to complex and multi-causal problems (wicked problems) in search of building integrated solutions with multilevel governance. The Soviets imposed large reparations payments on the Axis allies that were in its sphere of influence. Still, efforts to extend the Marshall Plan beyond its initial four-year period stalled with the beginning of the Korean War in 1950. [1] The goals of the United States were to rebuild war-torn regions, remove trade barriers, modernize industry, improve European prosperity and prevent the spread of communism. Due to Franco's sympathy with the Axis powers, the winners of the war excluded Spain from the post-war international order.[1]. [31] Furthermore, the large shipments of food stolen from occupied nations during the war no longer reached Germany. [134], Alfred Friendly, press aide to the US Secretary of Commerce W. Averell Harriman, wrote a humorous operetta about the Marshall Plan during its first year; one of the lines in the operetta was: "Wines for Sale; will you swap / A little bit of steel for Chateau Neuf du Pape?"[135]. On June 13, 1940, when the Germans were about to enter Paris, Franco abandoned "strict neutrality" and declared himself "non-belligerent", which was the status that Italy had before entering war. 1 How many countries were assisted under the Marshall Plan and how much assistance was given? Franco, along with Hitler and Mussolini, was guilty of the conspiracy that resulted in the World War II, in which the belligerency of Franco was postponed until the moment that it mutually agreed to one another. Although all other Communist European Countries had deferred to Stalin and rejected the aid, the Yugoslavs, led by Josip Broz (Tito), at first went along and rejected the Marshall Plan. Painting of Harry S. Truman during his time in office. Was Russia an extreme communism , because at the first they were actual communism , which basically means that everyone was equal , but then Stalin took over, and so he basically broke the communism doctrine when he was above everyone else or what? In one of the most evident signs and reflections of tight Soviet control and domination over the region, Jan Masaryk, the foreign minister of Czechoslovakia, was summoned to Moscow and berated by Stalin for considering Czechoslovakia's possible involvement with and joining of the Marshall Plan. The total of the loan includes $65 million for Belgium and $3 million for Luxembourg: it is impossible to define the respective grants among the two countries. Despite Allied protests, Franco aided the Axis Powers by sending the Blue Division to the Soviet Union and seizing. Between May and June 1946, the UN Security Council made a study on the political situation in Spain, arriving at the following conclusions: Franco's regime was fascist in nature, established with the help of the Nazi regime in Germany and the fascist regime in Italy. Spain's American empire The conquests. However, when independent American oil companies complained, the ECA denied funds for European refinery construction. , The main reason for the reluctance of the Spaniards to enter the war was, With the outbreak of World War II, they united, Clearly, Spain shared much of the same sentiment as the Confederate States of America during the American Civil War and was in a unique position to help, In World War II, the three great allied powers . 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. Millions of refugees were in temporary camps. Welfare Loss Cap 19471955 26 percent GDP. The war left a swath of destruction that crippled infrastructure and led to massive food shortages in the winter of 1946-1947. History.state.gov.The Marshall Plan. Without the plan, agriculture would have played a larger role in the recovery period, which itself would have been longer. He ruled Spain for nearly 40 years, managing to stay in power only because his nation was suppressed and in fear of him. In an effort to prevent economic decline in post-war Europe, the spread of communism and the stagnation of world trade, the Plan sought to stimulate European productionpromote the adoption of policies leading to a stable economy and take measures to increase trade between European countries and between Europe and. The 20-member conservative isolationist Senate wing of the party, based in the rural Midwest and led by Senator Kenneth S. Wherry (R-Nebraska), was outmaneuvered by the emerging internationalist wing, led by Senator Arthur H. Vandenberg (R-Michigan). However, the Cold War caused the US government to change its attitude towards Francoist Spain since its geographical situation and anticommunist government would be a valuable asset to the so-called "free world" plans. Communism, in some degrees, is impossible to realize. His policy of containment is known as the Truman Doctrine. The only major Western European nation excluded was Francisco Franco's Spain, which was highly unpopular in Washington. The main years of autarky are not those that are usually considered, but 1947-1955, marked by the exclusion of Spain from the Marshall Plan and the Madrid Treaty between the Franco regime and the United States. The Eastern bloc, beyond the Iron Curtain, was communist and under the Soviet Union's influence. [citation needed] In 1948, the US allowed ERP aid to be used to buy goods from Canada. The American aid was not part of the Marshall Plan. The Marshall Plan money was transferred to the governments of the European nations. "[38] The restrictions placed on German heavy industry production were partly ameliorated; permitted steel production levels were raised from 25% of pre-war capacity to a new limit placed at 50% of pre-war capacity. [50], 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, which led to the creation of the Committee of European Economic Co-operation. Receive updates in your inbox as soon as new content is published on our website, The Marshall Plan: Design, Accomplishments, and Significance, A New Look at the Bretton Woods Agreement, The Arsenal of Democracy: The United States in World War II, The COVID-19 Recession in Historical Perspective, Read more about the author and her research. Harry S. Truman on April 3, 1948. The funds were jointly administered by the local governments and the ECA. Winston Churchill said that the Marshall Plan was the most unsordid act in history. Ultimately, 17 countries would benefit from the Marshall Plan. "[36] In addition, the strength of Moscow-controlled communist parties in France and Italy worried Washington. 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. Replacing an earlier proposal for a Morgenthau Plan, it operated for four years beginning on April 3, 1948. Why was the United States so concerned with the spread of communism, outside of the scope of the Soviet Union? The other 40% of the counterpart funds were used to pay down the debt, stabilize the currency, or invest in non-industrial projects. The purpose of this campaign was to sway public opinion in their direction and to inform the common person of what the Marshall Plan was and what the Plan would ultimately do. However, they refused to join the effort, allegedly fearing U.S. involvement in their respective national affairs. [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. In view of the Soviet failure to do so, the western zones halted the shipments east, ostensibly on a temporary basis, although they were never resumed. The cookie is used to store the user consent for the cookies in the category "Other. This is why the Truman Doctrine and the Marshall Plan where so important at this time. [C] "Marshall Plan" has become a metaphor for any very large-scale government program that is designed to solve a specific social problem. The Marshall Plan grants were provided at a rate that was not much higher in terms of flow than the previous UNRRA aid and represented less than 3% of the combined national income of the recipient countries between 1948 and 1951,[109] which would mean an increase in GDP growth of only 0.3%. From that, the BLS could recommend technologies (especially statistical) that each individual nation could implement. The Cold War was a period of tension and hostility between the Soviet Union and its allies and Western powers in the period 1945-1990. The Americans were pushing the importance of free trade and European unity to form a bulwark against communism. The Marshall Plan | Hoover Institution The Marshall Plan The Marshall Plan: Definition, Date & Cold War - HISTORY Finland, which the Soviets forbade from joining the Marshall Plan and was required to give large reparations to the Soviets, saw its economy recover to pre-war levels in 1947. The only major powers whose infrastructure had not been significantly harmed in World War II were the United States and Canada. First, given the wars destruction to Europes manufacturing base, we would have expected Europe to import large amounts of manufacturing goods primarily from the U.S., since the region likely would not have been able to manufacture enough goods needed to meet the demands of reconstruction. A Theoretical and Political Analysis in the Global World Against a Background of Regional Integration: Table 1. On June 5, 1947, in an address at Harvard University, Secretary of State George C. Marshall advanced the idea of a European self-help program to be financed by the United States, saying. These efforts had important effects, but they lacked any central organization and planning, and failed to meet many of Europe's more fundamental needs. [91] London was dubious about Washington's emphasis on European economic integration as the solution to postwar recovery. Many citiesincluding the industrial and cultural centers of London, Dresden, Berlin, Cologne, Liverpool, Birmingham and Hamburghad been partly or wholly destroyed. [53], Soviet Foreign Minister Vyacheslav Molotov left Paris, rejecting the plan. These cookies will be stored in your browser only with your consent. [5], On November 4, 1950, the General Assembly adopted Resolution 386, which revoked the recommendation for the withdrawal of ambassadors accredited to the Spanish government while repealing the recommendation that prevented Spain from being a member of the International agencies established or linked by the United Nations. July 01, 2021. When World War II began on September 1, 1939, Francoist Spain proclaimed that Spain would remain neutral. Marshall Plan The Marshall Plan was the important Us plan to rebuild European countries after World War II The initiative was named for United StatesSecretary of State, George Marshall It is a plans for economic assistance to those nations who with not end communism. 75% said the same or more jobs; 10% said fewer.[125]. To highlight the significance of Americas largesse, the billions committed in aid effectively amounted to a generous 5 percent of U.S. gross domestic product at the time. The CIA used these funds to establish front businesses in several European countries that were designed to further U.S. interests in the region. 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. As Adam Ulam put it, "with the Marshall Plan, Marshall Plan aid allowed the nations of Western Europe to relax austerity measures and rationing, reducing discontent and bringing political stability. Which U.S. president signed the Marshall Plan into law? In return, it was believed democracy as well as peace and prosperity would flourish worldwide. All data from the official document: U.S. Bureau of the Census. The currency reform in 1948 was headed by the military government and helped Germany to restore stability by encouraging production. [citation needed], The U.S. government did not give money directly to the participating countries so that they could buy whatever they thought they needed. We also use third-party cookies that help us analyze and understand how you use this website. The Truman administration, represented by William L. Clayton, promised the Europeans that they would be free to structure the plan themselves, but the administration also reminded the Europeans that implementation depended on the plan's passage through Congress. UNRRA provided billions of dollars of rehabilitation aid and helped about 8 million refugees. There were no agents working among the Soviets or their satellite states. They write new content and verify and edit content received from contributors. [62] The report further claimed that "reactionary imperialist elements throughout the world, particularly in the United States, in Britain and France, had put particular hope on Germany and Japan, primarily on Hitlerite Germanyfirst as a force most capable of striking a blow at the Soviet Union". Reports provided to Marshall suggested that some regions of the continent were on the brink of famine because agricultural and other food production had been disrupted by the fighting. On April 3, 1948, President Truman signed the Economic Recovery Act of 1948. in, Jackson, Scott. Each European capital had an ECA envoy, generally a prominent American businessman who would advise on the process. 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. Byrnes, United States Secretary of State, Restatement of Policy on Germany, Stuttgart, September 6, 1946, Marshall Plan Commemorative Section: Lessons of the Plan: Looking Forward to the Next Century, Truman Presidential Library online collection of original Marshall Plan documents from the year 1946 onward, "The Tragedy of American Diplomacy? [33], During the first three years of occupation of Germany, the Allied occupational authorities vigorously pursued a military disarmament program in Germany, partly by removal of equipment but mainly through an import embargo on raw materials, part of the Morgenthau Plan approved by President Franklin D. "[39] Hoover's report led to a realization in Washington that a new policy was needed; "almost any action would be an improvement on current policy. At the UN, the issue of Spain was one of the first to be addressed by the organization, on the initiative of the Polish delegation. Buschlaid on Twitter The truth of the matter is that Europes requirements for the next three or four years of foreign food and other essential productsprincipally from Americaare so much greater than her present ability to pay that she must have substantial additional help or face economic, social, and political deterioration of a very grave character. Add one US Influence in each of seven non-USSR Controlled Western European countries. The conditions attached to Marshall Plan aid pushed European political economy in a direction that left its post World War II "mixed economies" with more "market" and less "controls" in the mix. First, they used existing data to calculate how much a worker produces per hour of workthe average output rate. The Cold War was a period of tension and hostility between the Soviet Union and its, One of the causes of the Spanish Civil War was the extreme conservative nature of the state. Only when there are enough resources, enough material resources, when people do not have any desire in possession, when they could simply get anything they want, could communism come true. The analyses in the Factory Performance Reports and the "hands-on" experience had by the European productivity teams effectively identified productivity deficiencies in European industries; from there, it became clearer how to make European production more effective. SOURCES: Organization for Economic Cooperation and Development, the World Bank, the Groningen Growth and Development Center, the National Bureau of Statistics of China and authors calculations. [D] All this aid was separate from the Marshall Plan. [63] The Marshall Plan was described as "the American plan for the enslavement of Europe". His policy of, To help rebuild after the war, the United States pledged $13 billion of aid to Europe in the, The world was in flux in the aftermath of World War II, and political upheaval reigned in many countries. Direct link to hansonkye6's post So if Communism could hel, Posted 7 years ago. [98] Out of the total, US$1.2 billion were loan-aid. Learn about key events in history and their connections to today. [100] By 1969 the Irish Marshall Plan debt, which was still being repaid, amounted to 31 million pounds, out of a total Irish foreign debt of 50 million pounds. The plan contributed greatly to the rapid renewal of the western European chemical, engineering, and steel industries. The Marshall Plan, Pros and Cons | Harry S. Truman Why do diamonds sparkle total internal reflection? Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Still, not all participating nations benefitted equally. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. What countries were part of the Marshall Plan? [citation needed], The Marshall Plan's role in the rapid recovery of Western Europe has been debated. If you're seeing this message, it means we're having trouble loading external resources on our website. What Did the Marshall Plan Actually Do? This includes a first loan of $16.9 million, to which were added $200 million representing a proportionally divided portion of grants converted into loans according to an agreement signed on 27 February 1953. As the cold war was generally consisted of 'proxy wars', did this include the skirmish in Nicaragua, and if so, how? [62] In a follow-up conversation with Stalin, he explained that an armed struggle would be impossible and that the struggle against the Marshall Plan was to be waged under the slogan of national independence. April 3, 1948 | Truman Signs Marshall Plan, Providing Aid to Europe Americans swapped their isolationist ideals for a much more global internationalist ideology after World War II. Marshall Plan countries and aid received. Of the Soviet Union Truman said, "The situation in the world today is not primarily the result of the natural difficulties which follow a great war. 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 negotiations were long and complex, with each nation having its own interests. The exception was Iceland, which had been neutral during the war, but received far more on a per capita basis than the second highest recipient.[97]. 16 countries But the alliance partners did not share common political goals and did not always agree on how the war should be waged. Copyright 2023 - globalanswers - All Rights Reserved, The British could not accept the inclusion of Spain in the ERP. Aside from the demoralizing effect on the world at large and the possibilities of disturbances arising as a result of the desperation of the people concerned, the consequences to the economy of the United States should be apparent to all. Continue with Recommended Cookies. Most of Europe's economies were recovering slowly, as unemployment and food shortages led to strikes and unrest in several nations. Only one-third of that $300 million cost was paid by the United States. [11] The purpose of the Marshall Plan was to aid in the economic recovery of nations after World War II and secure US geopolitical influence over Western Europe. The Marshall Plan, also known as the European Recovery Program, was a U.S. program providing aid to Western Europe following the devastation of World War II. While $19.4 billion was allocated for capital costs in the Marshall Plan, the Technical Assistance Program only required $300 million. Emma Lazarus' great poem is not the law of the land LOL. Only gradually did the Spaniards realize the possibilities of America.They had completed the occupation of the larger West Indian islands by 1512, though they largely ignored the smaller ones, to their ultimate regret. We argue, however, that the Marshall Plan did play a major role in setting the stage for post-World War II Western Europe's rapid growth. It was enacted in 1948 and . Every country in Europe was invited, with the exceptions of Spain (a World War II neutral that had sympathized with the Axis powers) and the small states of Andorra, San Marino, Monaco, and Liechtenstein. 2 What countries denied the Marshall Plan? U.S. President Harry S. Truman signed the Marshall Plan into law on April 3, 1948, after it was authorized by the U.S. Congress. One of the causes of the Spanish Civil War was the extreme conservative nature of the state. 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. Not to be confused with. [38], The United States was already spending a great deal to help Europe recover. Spain during World War II - Wikipedia . The results would be high imports and trade deficits.