Across America, multiple interest groups, including business, labor, farming, philanthropy, ethnic groups, and religious groups, saw the Marshall Plan as an inexpensive solution to a massive problem, noting it would also help American exports and stimulate the American economy as well. How did the Marshall Plan stop the spread of communism? It was formally called the European Recovery Program. What benefit did the Marshall Plan bring to the United States? [24], By the end of World War II, much of Europe was devastated. This resolution paved the way for Spain to join the United Nations system, which began in 1951 with the incorporation of agencies such as UPU, ITU, FAO and WHO,[1][6] and completed with the accession of Spain to the UN in 1955. Office of the Historian. What was the primary goal of the Marshall Plan? Political scientist Ralph Levering points out that: Mounting large public relations campaigns and supporting private groups such as the Citizens Committee for the Marshall Plan, the administration carefully built public and bipartisan Congressional support before bringing these measures to a vote. [88] The balance of payment problems the trouble the postwar government was caused less by economic decline and more by political overreach, according to Jim Tomlinson. The British could not accept the inclusion of Spain in the ERP because it would give weight to the negative image that the USSR promoted in relation to the ideology of the Marshall Plan.. With this step, the United States signaled that its role on the world stage would not conclude after World War II, ending a century and a half of isolationist foreign policy in America. He offered aid, but the European countries had to organize the program themselves. Replacing an earlier proposal for a Morgenthau Plan, it operated for four years beginning on April 3, 1948. Why was Spain excluded from the Marshall Plan? 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. Although they offered to participate, Soviet Union abandoned the Plans benefits, and also blocked benefits to Eastern Bloc countries such as Hungary and Poland. On December 17, 1947, the United States agreed to give $40 million to France, Austria, China, and Italy. Manage Settings [14][15][16] The Soviet Union prevented its satellite states (i.e., East Germany, Poland, etc.) 1 As an ideology, liberal internationalism rejects isolationism and "implies . Due to Franco's sympathy with the Axis powers, the winners of the war excluded Spain from the post-war international order.[1]. By and large, though, the Marshall Plan was generally lauded for the desperately needed boost it gave Americas European allies. 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. British economist argued that their position was validated by 1950 as European industrial production exceeded prewar levels. His policy of containment is known as the Truman Doctrine. 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. Direct link to David Alexander's post This could compare to "Wh, Posted 2 years ago. Which countries rejected the Marshall Plan? ECA was headed by economic cooperation administrator Paul G. Hoffman. While every effort has been made to follow citation style rules, there may be some discrepancies. [4] Although offered participation, the Soviet Union refused Plan benefits and also blocked benefits to Eastern Bloc countries, such as Romania and Poland. [99], Ireland which received US$146.2 million through the Marshall Plan, received US$128.2 million as loans, and the remaining US$18 million as grants. 3. Add one US Influence in each of seven non-USSR Controlled Western European countries. All Rights Reserved. [46] Marshall was particularly discouraged after personally meeting with Stalin to explain that the United States could not possibly abandon its position on Germany, while Stalin expressed little interest in a solution to German economic problems.[46]. [41], The United Nations also launched a series of humanitarian and relief efforts almost wholly funded by the United States. Per-capita gross domestic product (GDP) had fallen to 30% of U.S. per-capita GDP in 1945 from 63% in 1933. Somewhat more aid per capita was also directed toward the Allied nations, with less for those that had been part of the Axis or remained neutral. "Prologue to the Marshall Plan: The Origins of the American Commitment for a European Recovery Program,", Reynolds, David. She is a young woman who is eager to learn and has a keen mind. Welfare Loss Cap 19471955 26 percent GDP. The agency also allegedly financed an anti-communist insurgency in Ukraine, which at the time was a Soviet satellite state. 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. [75], Truman signed the Economic Cooperation Act into law on April 3, 1948; the Act established the Economic Cooperation Administration (ECA) to administer the program. Marshall Plan, 1948. an agenda that involves promoting open markets, international institutions, cooperative security, democratic . Paulina Restrepo-Echavarria is a senior economist at the Federal Reserve Bank of St. Louis. The cookies is used to store the user consent for the cookies in the category "Necessary". 6 Which countries rejected the Marshall Plan? Despite its reservations, the 80th Congress implemented Truman's requests, further escalating the Cold War with the USSR. [63]It described the world now breaking down "into basically two campsthe imperialist and antidemocratic camp on the one hand, and the anti-imperialist and democratic camp on the other". "[40] In Washington, the Joint Chiefs declared that the "complete revival of German industry, particularly coal mining" was now of "primary importance" to American security. [90], There were political tensions between the two nations regarding Marshall plan requirements. It was this victor's psychology that deluded both Labour and Conservative politicians into believing that Britain - at the centre of the Commonwealth and the Sterling area - could have a future. The notable exception was West Germany: Though all of Germany was damaged significantly toward the end of World War II, a viable and revitalized West Germany was seen as essential to economic stability in the region, and as a not-so-subtle rebuke of the communist government and economic system on the other side of the Iron Curtain in East Germany. Secretary Marshall became convinced Stalin had no interest in helping restore economic health in Western Europe. A larger amount was given to the major industrial powers, as the prevailing opinion was that their resuscitation was essential for general European revival. "[63]It argued that "the bosses of Wall Street" were "tak[ing] the place of Germany, Japan, and Italy". These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. At globalanswers, Josie writes content. Second, the aid pledged to Europe in the Marshall Planabout $13 billion, or $138 billion in 2019 dollarscombined with the financing from the IBRD would have left Europe with sufficient funding for these manufactured goods. 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. 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. Franco's regime was fascist in nature, established with the help of the Nazi regime in Germany and the fascist regime in Italy. The Americans were pushing the importance of free trade and European unity to form a bulwark against communism. [53] Looming as just as large a concern was the Czechoslovak eagerness to accept the aid, as well as indications of a similar Polish attitude. The ECA's official mission statement 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 US goods. This article was most recently revised and updated by, https://www.britannica.com/event/Marshall-Plan, The George C. Marshall Foundation - The Marshall Plan, The National WWII Museum - The Marshall Plan and Postwar Economic Recovery, Organisation for European Economic Co-operation. 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. From July 1945 through June 1946, the United States shipped 16.5 million tons of food, primarily wheat, to Europe and Japan. ", "European Recovery Program" redirects here. U.S. Secretary. UNRRA provided billions of dollars of rehabilitation aid and helped about 8 million refugees. INTRODUCTION 2. Often, these technologies came from the United States; by the time the Technical Assistance Program began, the United States used statistical technologies "more than a generation ahead of what [the Europeans] were using".[84]. [117] Examples of material received by the Soviets were equipment from the Kugel-Fischer ballbearing plant at Schweinfurt, the Daimler-Benz underground aircraft-engine plant at Obrigheim, the Deschimag shipyards at Bremen-Weser, and the Gendorf powerplant. [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. 75% said the same or more jobs; 10% said fewer.[125]. They state: It was not large enough to have significantly accelerated recovery by financing investment, aiding the reconstruction of damaged infrastructure, or easing commodity bottlenecks. At least five national laws of expulsion were implemented, in varying degrees, and often counterpart laws were enforced in the states. While the thousands of European leaders took their work/study trips to the United States, they were able to observe a number of aspects of American society as well. The Soviet Reaction to the Marshall Plan, 1947 Scott D. Parrish Lecturer, Department of Government University of Texas at Austin Introduction The Soviet rejection of the Marshall Plan in the summer of 1947 has long been viewed as a turning point in the development of the Cold War. [99] Unconnected to the Marshall Plan the UK also received direct loans from the US amounting to US$4.6 billion. Only one-third of that $300 million cost was paid by the United States. Economic historians J. Bradford DeLong and Barry Eichengreen call it "history's most successful structural adjustment program. During the nationwide campaign for support, "more than a million pieces of pro-Marshall Plan publications-booklets, leaflets, reprints, and fact sheets", were disseminated. [2], The day after the adoption of the resolution, the Francoist State responded with a large demonstration in the Plaza de Oriente vindicating national pride in the face of foreign hostility and appealing to the Spanish people's self-sufficiency. Posted 7 years ago. [3] Between May and June 1946, the UN Security Council made a study on the political situation in Spain, arriving at the following conclusions: Convinced that the Francoist State was imposed on the Spanish people by force with the help of the Axis powers (which it helped during the war) and did not represent the Spanish people, making it impossible to participate in international affairs of the Spanish people with The United Nations,[4] on December 12, 1946, the General Assembly adopted Resolution 39, which excluded the Spanish government from international organizations and conferences established by the United Nations. The United Kingdom and France received the most at $33 billion and $28 billion, respectively. 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. While $19.4 billion was allocated for capital costs in the Marshall Plan, the Technical Assistance Program only required $300 million.