{"id":946,"date":"2017-11-03T12:10:11","date_gmt":"2017-11-03T12:10:11","guid":{"rendered":"http:\/\/schoolshistory.org.uk\/topics\/?page_id=946"},"modified":"2026-05-08T10:46:01","modified_gmt":"2026-05-08T10:46:01","slug":"marshall-plan","status":"publish","type":"page","link":"https:\/\/schoolshistory.org.uk\/topics\/world-history\/cold-war-1945-1972\/marshall-plan\/","title":{"rendered":"Marshall Plan"},"content":{"rendered":"

The Marshall Plan was an economic package designed by the United States with input from other Western Allies. It was designed to provide stability for the parts of Germany that were occupied by the Western powers. Investment and aid were introduced alongside military occupation and new, monitired, forms of administration. The Marshall Plans aims were tied to the Truman Doctrine as well as simple pragmatism, Germany was devastated and needed assistance to prevent a recurrence of extreme views.<\/p>\n

The Marshall Plan<\/h3>\n

The Truman doctrine largely concerned itself with military aid in defence of \u2018freedom\u2019, but communists could gain power by means other than outright aggression. Europe\u2019s economic situation in 1945 was desperate. Many countries were facing severe food shortages, disrupted communications, low production and unemployment. Like after the First World War<\/a>, it would take the world and individual economies some time before they could recover. Many believed that, as in 1917\/8, these were ideal conditions to encourage the support of communism. As one US State Department official wrote:<\/p>\n

\u201cHungry people are not reasonable people. Their thoughts are concerned with their own misery and particularly with the tortured cries of their hungry children. They are the easy victims of mass hysteria. When people become frightened … democratic precepts mean nothing.\u201d<\/p><\/blockquote>\n

\"West<\/a><\/p>\n

Factors influencing the Marshall Plan<\/h3>\n

The success of the French and Italian communist parties in postwar elections were particularly worrying proof of these fears. What was more, the economic crisis in Europe threatened prosperity in the USA as well. Without a general recovery international trade would be damaged and the US was unlikely to recover any of the substantial loans it had made to its allies.<\/p>\n

European Recovery Programme<\/h3>\n

The situation encouraged the American Secretary of State, General George C. Marshall, to propose that the USA should help to rebuild European economies by giving them massive sums of money. His European Recovery Programme (ERP) offered economic and financial assistance wherever it was needed. \u201cOur policy\u201d, he declared, \u201cis directed not against any country or doctrine, but against hunger, poverty, desperation and chaos.\u201d Nevertheless, the need to ensure markets for US goods and the advantages of wealth as a barrier to the spread of communism were not lost on the Congress, which approved the plan. Over the next four years over 13,000 million dollars of Marshall Aid flowed into western Europe, promoting economic recovery. A total of 16 west European countries joined the Organisation for European Economic Cooperation (OEEC), which distributed American aid.<\/p>\n

Soviet View: ‘Dollar Imperialism’ via the Marshall Plan<\/h3>\n

The Russians, however, knew that there was more to Marshall Aid than benevolence. Although aid was in theory available to eastern Europe, including the Soviet Union<\/a>, Molotov, the Russian Foreign Minister, denounced the whole idea of \u2018dollar imperialism\u2019. He saw the plan as no more than a capitalist device for gaining control over western Europe and, worse still, for interfering in eastern Europe, which Stalin considered to be in his \u2018sphere of influence\u2019. Russia rejected the offer of help and neither her satellites<\/a> nor Czechoslovakia, which was showing interest, were allowed to take advantage of Marshall Aid. The establishment of the Cominform<\/a> later that year was clear evidence that the lines between East and West were hardening and a cold war<\/a> was beginning.<\/p>\n

Cold War<\/a><\/p>\n

Tehran, Yalta and Potsdam Conferences<\/a>\u00a0\u2013\u00a0Stalin and Truman: ideological differences<\/a>\u00a0\u2013\u00a0Soviet Satellite States<\/a>\u00a0\u2013\u00a0Cominform and Comecon<\/a>\u00a0\u2013\u00a0US Involvement in Europe Post WW2<\/a>\u00a0\u2013\u00a0Truman Doctrine<\/a>\u00a0\u2013\u00a0Marshall Plan<\/a>\u00a0\u2013\u00a0Bizonia<\/a>\u00a0\u2013\u00a0Berlin Airlift<\/a>\u00a0\u2013\u00a0NATO: Origins and History<\/a>\u00a0\u2013\u00a0The arms race and Mutually assured destruction<\/a>\u00a0\u2013\u00a0Soviet rule in Hungary<\/a>\u00a0\u2013\u00a0Destalinization<\/a>\u00a0\u2013\u00a0Hungarian Revolution<\/a>\u00a0\u2013\u00a0Berlin: Refugee Crisis<\/a>\u00a0\u2013\u00a0Khruschev\u2019s challenge to the west over Berlin<\/a>\u00a0\u2013\u00a01960: Paris Summit<\/a>\u00a0\u2013\u00a0Kennedy and the Berlin Crisis<\/a>\u00a0\u2013\u00a0Berlin Wall<\/a>\u00a0\u2013\u00a0President Kennedy visit to Berlin<\/a>\u00a0\u2013\u00a0Cuban Missile Crisis: Why were missiles there?<\/a>\u00a0\u2013\u00a0Cuban Missile Crisis: Why did Kennedy respond as he did?<\/a>\u00a0\u2013\u00a0Cuban Missile Crisis: Resolution and analysis<\/a>\u00a0\u2013\u00a0Vietnam War<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Marshall Plan was an economic package designed by the United States with input from other Western Allies. It was designed to provide stability for the parts of Germany that were occupied by the Western powers. Investment and aid were introduced alongside military occupation and new, monitired, forms of administration. The Marshall Plans aims were… <\/p>\n","protected":false},"author":1,"featured_media":3514,"parent":148,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"off","neve_meta_content_width":100,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"class_list":["post-946","page","type-page","status-publish","has-post-thumbnail","hentry"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t