What Was the Marshall Plan? (with pictures)

The Marshall Plan, also called the European Recovery Plan, was enacted by the US in 1947 as a way to help rebuild Europe after World War II. The mind behind the plan was George Marshall, who was the US Secretary of State at the time, although William Clayton and George Kennan are credited with writing the majority of the program. Though it was meant to help the badly damaged Europe recover, it was also meant to prevent communism from gaining a stronghold in war torn countries.

West Germany, which was divided from East Germany after the war, received some aid under the Marshall Plan. Great Britain and France received the most aid, over $200 million US Dollars (USD) each. Other countries receiving funds for reconstruction were Austria, Belgium, Denmark, Greece, Iceland, Italy, the Netherlands, Norway, Portugal, Sweden, Switzerland, and Turkey. For the most part, these countries represented the allied relationships formed during WWII, although others, like Italy, were part of the Axis forces during the war. Japan did not receive aid, and although aid was offered to the Soviet Union, it was refused.

In total, the US government spent $13 billion USD under the program from 1948 to 1951. Some of the money spent was considered part of Germany’s debt, since much of the destruction was the result of German invasion and bombing of certain countries. The US was fortunate to have very little damage since it entered the war late, and the 48 contiguous states were largely untouched by the war.

The Marshall Plan did succeed for the most part. It spurred significant economic recovery in countries receiving aid, and it is also considered the beginning step toward forming a union of the European countries. This goal was considered important to the US in the prevention of future multi-national European wars.

The program abruptly ended in 1951 when the US became involved in the Korean conflict. Republicans had gained control of the House of Representatives and the Senate in 1950, as well, and many of them disapproved of the plan. With fewer funds to allocate toward European recovery, the plan was officially disbanded. There were efforts to extend it, but Republicans quickly voted them down.

Though the Marshall Plan succeeded in helping to restore some economies, it could not stem the takeover of communism in certain countries. The Cold War intensified, as expressed in the Korean conflict in the 1950s.