Cold War: Marshall Plan and the Policy of Containment Flashcards
Why was the plan needed
Post-war economies of Europe were crippled.
Broken infrastructure and food shortages
USA was concerned these poverty-stricken countries would turn to communism as it seemed appealing to the poor.
Falls under policy of containment. USA needed to stabilise these economies.
Marshall Plan
March 1948 - Congress passed Economic Cooperation Act
Approved $12 billion for West Europe
Managed to rehabilitate the struggling economies of countries that accepted aid.
Benefited US economy as only US goods could be bought with Marshall Aid money
Powerful propaganda tool
OEEC
The ECA distributed the money.
Helped to restore and uplift economies. Expanded trade and promoted financial stability
Stalin’s view
Dollar diplomacy - scheme to control West Europe
Convinced the USA was trying to control satellite states, therefore he told them to not take aid.
Created the Molotov Plan in 1947 to tie the satellite states to the USSR economically
Cominform created in 1947 to promote ideology and obedience in satellite states. Comencon gave economic assistance to satellites
Results of the Marshall Plan
Managed to rehabilitate the economies that joined. Rapidly renewed Western Europe production
Point Four Program - Expand into Africa and Asia
Differences were seen in economies of West and East Europe, especially in Germany
