MARSHALL PLAN

Marshall Plan

Outline

Introduction3

The Origin3

The Marshall Plan4

Objectives5

Implementation6

Soviet Rejection6

Countries Covered7

Results7

Conclusion8

References9

Marshall Plan

Introduction

The Marshall Plan is regularly cited whenever it comes to development aid. Its success is a proof that credits and grants can provide a solid start to an economy. This plan was the result of the Second World War which severely damaged European countries. This program helped such countries in economic reconstruction. (Agnew and Entrikin 2004)

This paper describes the historical event known as the Marshall Plan. U.S. ordered to clean up the deteriorating economy after the war. Among these measures, the allied countries in the Bretton Woods conference (1944), had laid the foundations for the creation of the International Monetary Fund (IMF) and International Bank for Reconstruction and Development (World Bank ). To avoid trade discrimination, in 1948, he signed the General Agreement on Tariffs and Trade (GATT), which prevented giving preference to one country against another, in commercial matters.

Within these sets of plans, President Harry Truman and U.S. Secretary of State General George Marshall launched the Marshall Plan, for the European recovery. (Agnew and Entrikin 2004)

The Origin

On 3 April 1948, the U.S. Secretary of State George C. Marshall proposed to adopt a single utility. The so-called Marshall Plan should be helping the countries of Europe, which had been destroyed by the war. The Eastern Bloc countries refused to cooperate, and so distributed the Economic Cooperation Administration (ECA), the management was entrusted with the grants and loans exclusively for Western Europe. 12.4 billion U.S. dollars were granted. The ECA funded food and raw materials which were mainly from the U.S. (Agnew and Entrikin 2004)

The Marshall Plan

On June 5, 1947, in a speech at Harvard University, General George C. Marshall announced a program of development aid as the world had never known.

It would be neither fitting nor efficacious for this Government to undertake to draw up unilaterally a program designed to place Europe on its feet economically. This is the business of the Europeans. The initiative, I think, must come from Europe. The role of this country should consist of friendly aid in the drafting of a European program and of later support of such a program so far as it may be practical for us to do. The program should be a joint one, agreed to by a number, if not all European nations. (GEORGE C. MARSHALL June 5, 1947)

The "European Recovery Program (ERP) is a historical event. President Harry Truman and Secretary of State General George C. Marshall wants to help Europe (including the USSR) to get on their feet by the end of the Second World War by giving them the means to fight "against hunger, desperation and chaos". He also wants to prevent these countries from becoming the prey of dictatorship once again. Sixteen countries eventually accepted the U.S. aid: Austria, Belgium, Denmark, Ireland, France, Great Britain, Greece, Iceland, Italy, Luxembourg, Norway, Netherlands, Portugal, Sweden, Switzerland and Turkey (and all countries that in 1945 escaped the Soviet occupation). In 1949 they were joined by West ...