GDP growth in the U. This feature is limited to our corporate solutions. Please contact us to get started with full access to dossiers, forecasts, studies and international data. Skip to main content Try our corporate solution for free! Single Accounts Corporate Solutions Universities. Between and , the U. Notable exceptions from this aid were Spain, due to Franco's unpopularity in the U. While money was roughly split between nations based on population size, larger, industrialized countries received a disproportionately higher share of the aid as it was believed their success would trickle down to smaller states.
Economic insignificance? The term "Marshall Plan" has become something of a synonym for economic recovery plans in recent decades, yet the modern consensus is that the economic impact of the original was fairly overstated at the time.
This investment of capital did help, but European recovery was well underway before the first installments were paid by the U. S, and it was European integration which laid the groundwork for recovery. Unlike the period following the First World War, the victorious powers had learned that cooperation between former adversaries, rather than punishment and reparations , would be the key to future success.
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 removed, and the transition to more capitalist economies eventually led to the most prosperous period ever recorded in European history, known as the "Golden Age" Marshall, actually invited the Soviet Union and Eastern Bloc states to take part in the offer, although this was a token gesture that U.
Not only did the Soviet Union reject the U. While this plan initially rewarded Poland and Czechoslovakia for rejecting Americanization, the heavy reparations placed on the Axis powers meant that it was of little benefit to the likes of East Germany, Hungary, or Romania. Stanford University Press, Gordon, Lincoln. Hitchens, Harold L.
Hoffmann, Stanley and Charles Maier, eds. The Marshall Plan: a R etrospective. Boulder, Westview Press, Hogan, Michael J. Cambridge University Press, Jones, Joseph M. The F ifteen W eeks February June 5, New York, Viking Press, Machado, Barry. Marshall Foundation, Lexington, Virginia, Mee, Charles L. Milward, Alan S. The R econstruction of Western Europe, Berkeley, University of California Press, Organization for Economic Cooperation and Development.
From Marshall Plan to G lobal I nterdependence. Paris, OECD, OECD Observer. Special Issue: Marshall Plan 20 th A nniversary. June Price, Harry Bayard. The Marshall Plan and its M eaning. Ithaca, Cornell University Press, Quade, Quentin L.
Sanford, William F. New York, Garland Publishing, Smith, Kenneth F. Silberman, James M. Global Technology Management, Inc. Bethesda, Maryland, for the World Bank. November Joint Committee on Foreign Economic Cooperation. Washington, U. ECA and Strategic Materials. Report, 81 st Congress, 1 st session. Knowledge of the Marshall Plan in Europe: France. The Proposed European Payments Union. Report on Progress of the Economic Cooperation Administration. Committee on Appropriations.
Foreign A id A ppropriation B ill, Report on H. Special Subcommittee on Foreign Aid Appropriations. Foreign A id A ppropriation B ill for Hearings, 81 st Congress, 1 st session. Foreign A id A ppropriations for Hearings, 81 st Congress, 2d session. Special Subcommittee on Economic Cooperation Administration.
Mutual S ecurity P rogram A ppropriations for Hearing, 82d Congress, 1 st session. Committee on Foreign Affairs. Extension of European R ecovery P rogram.
The M utual S ecurity P rogram. Hearings, 82d Congress, 1 st session. Committee on International Relations. Foreign E conomic A ssistance P rograms. Part I: Foreign A ssistance A ct of Historical series. Volume III. Subcommittee on International Operations.
The Marshall Plan R esolution. Hearing and markup, 95 th Congress, 1 st session. May 11, Select Committee on Foreign Aid. Final R eport on F oreign A id. May 1, Foreign A id A ppropriation A ct, Report no. Special Subcommittee on Foreign Economic Cooperation. Conditions in Europe in the S pring of Staff report, 82d Congress, 1 st session. Report, 82d Congress, 2d session. Investigations Division.
Foreign-Aid P rogram in Europe. Report, 83 rd Congress, 1 st session. Committee on Foreign Relations. European R ecovery P rogram. Hearings, 80 th Congress, 2d session. Report on S. Foreign E conomic A ssistance, Washington, G. Report, 82d Congress, 1 st session. Senator Tom Connally. Report on Western Europe. Mutual S ecurity A ct of United States.
Mutual Security Agency. Washington, Weiss, Charles, Jr. The Marshall Plan: L essons for U. The Atlantic Council, Washington, D. December Vandenberg, Arthur, Jr. The P rivate P apers of Senator Vandenberg. Houghton Mifflin, Boston, Wexler, Imanuel. Westport, Greenwood Press, Wilson, Theodore A. The Marshall Plan. This report is a modified version of The Marshall Plan: Design, Accomplishments, and Relevance to the Present by [author name scrubbed], originally published by CRS on January 2, , and in a revised form on January 6, Throughout this report, the terms Marshall Plan and European Recovery Program are used interchangeably.
Irwin M. Address at Harvard University, June 5, , p. Jones, The Fifteen Weeks. The Jones book provides a detailed description of events leading up to this speech. Complete book references can be found in the Appendix. The "dollar gap" was considered important because the United States was the dominant economy at this time, and it was assumed that U. The dollar gap would be likely to grow. Until European countries were able to build up reserves, they would tend to divert their exports to and their imports away from the dollar area.
This would force cuts in food imports and capital goods, further destabilizing Europe and slowing growth. The Marshall Plan sought to close the "dollar gap. Hogan, The Marshall Plan , p. The chairman of the Senate Foreign Relations Committee called the version of the legislation which went to the floor of the congress, "the final product of eight months of more intensive study by more devoted minds than I have ever known to concentrate upon any one objective in all my twenty years in Congress.
See also Quentin L. January See House. Final Report on Foreign Aid. Written November 18, , Arthur H. Mee, Jr.
The Marshall Plan , p. European Recovery Program. About half of the funds were used for purchases and the other half for development projects. See U. Committee on Appropriations, Conditions in Europe in the Spring of , p. Brown and Opie, American Foreign Assistance , p. The ECA mission in Germany reportedly withheld aid until the German national railway agreed to balance their budget. Economic Recovery Program.
February 27, In Charles Mee, Jr. This term was left undefined. Post-war Europe was in dire straits: Millions of its citizens had been killed or seriously wounded in World War II , as well as in related atrocities such as the Holocaust.
Many cities, including some of the leading industrial and cultural centers of Great Britain, France, Germany, Italy and Belgium, had been destroyed. 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.
In fact, it could easily be argued that the only world power not structurally affected by the conflict had been the United States. The reconstruction coordinated under the Marshall Plan was formulated following a meeting of the participating European states in the latter half of Notably, invitations were extended to the Soviet Union and its satellite states.
However, they refused to join the effort, allegedly fearing U. The Marshall Plan provided aid to the recipients essentially on a per capita basis, with larger amounts given to major industrial powers, such as West Germany, France and Great Britain. This was based on the belief of Marshall and his advisors that recovery in these larger nations was essential to overall European recovery. Still, not all participating nations benefitted equally. Nations such as Italy, who had fought with the Axis powers alongside Nazi Germany, and those who remained neutral e.
In all, Great Britain received roughly one-quarter of the total aid provided under the Marshall Plan, while France was given less than one fifth of the funds. Interestingly, in the decades since its implementation, the true economic benefit of the Marshall Plan has been the subject of much debate. Indeed, reports at the time suggest that, by the time the plan took effect, Western Europe was already well on the road to recovery. And, despite the significant investment on the part of the United States, the funds provided under the Marshall Plan accounted for less than 3 percent of the combined national incomes of the countries that received them.
Rooted in FDR's Four Freedoms Speech , the Marshall Plan was not originally intended to be a weapon to fight communism, but it became a bulwark of American foreign policy to manage communist containment on the Continent, as outlined in the Truman Doctrine , during the Cold War. Kennan was charged with the responsibility for long-term planning. Background The demise of Axis political and military power left a vacuum in the areas of international life where that power had asserted itself.
The Allies got nowhere with Russia on peace treaties, because they had been unable to agree on how that vacuum should be filled. The American view was that new and liberalized political governments should rise from the totalitarian rubble. The former Axis countries would remain demilitarized and under close allied supervision, but would otherwise enjoy national independence. The Soviets under Stalin were determined to see new regimes emerge that would be dominated by communists subservient to Moscow.
That would give the Kremlin effective control over the military and industrial power of those countries, and it would help them to dominate surrounding regions as well. Secretary of State George Marshall proposed that European nations should create a plan for their economic reconstruction and that the United States would provide economic assistance.
In practical application, the proposal involved the constructive solution of thousands of detailed problems of international life. While attempting to go ahead with the program, the American government found itself temporarily blocked by the inability of the other Allies to reach agreement on the terms of treaties of peace with the major axis countries: Germany and Japan.
On December 19, , President Harry S.
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