The Marshall Plan 1947-48

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(Truman Doctrine in action)

Europe's economy had been shattered by WW2. Europe owed the USA $11.5 billion

Europe had to tackle the devastation caused by the war, the impact of the bombing, the loss of lives, the destruction of industry, refugees and a mountain of debt

US secretary of state George Marshall believed that countries suffering from poverty and unemployment were more likely to turn to communism

The aim of The Marshall Plan was therefore to rebuild the shattered European economy so that it could resist the spread of communism. A fund of $15 billion was available to any nation who applied for it

The Marshall Plan aimed to:

Raise living standards in Western Europe (UK, France, Italy) to reduce the appeal of communism

To rebuild Germany

To weaken the Soviet control over Eastern Europe

To help the US economy by increasing US exports to Europe. They didn't want a repeat of the 1920's

The US government was initially unsure about providing so much aid to Europe, however, events in Czechoslovakia soon changed their minds

Czechoslovakia-1948

By 1948, Czechoslovakia was not under control of the communists

The government considered accepting Marshall Aid

Elections were due to take place in Spring 1948 and the communists were expected to do badly

Communists then forced their opponents out of the government

Jan Masaryk, a minister who supported the West, was murdered

The communists took control of Czechoslovakia

This angered people in the West and US politicians who had been reluctant to give Marshall Aid, agreed to the money for the Marshall Plan

Stalin's reaction to The Marshall Plan:

Stalin called The Marshall Plan 'dollar imperialism' and claimed the US was trying to control industry and trade in Europe

He believed that it tried to undermine communism and to promote the spread of capitalism across the globe

He refused to accept any economic aid and stopped any Eastern bloc country applying for it

Effects of Marshall Aid:

Over $12 billion came into Europe between 1947 and 1951 supporting Europe's economic recovery

Only 16 European countries accepted it (all Western countries)

Stalin refused Marshall Aid for the USSR and banned Eastern European countries from accepting it